1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MAVERICK [17]
2 years ago
6

A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change

in the price of this bond if the market yield to maturity rises to 6.7 percent from the current rate of 5.5 percent
Business
1 answer:
statuscvo [17]2 years ago
8 0

Answer: -10.14%

Explanation:

Original Price of bond:

Interest is paid semiannually so some variables need to be adjusted:

Period = 13 * 2= 26 semi annual periods

Coupon = 6% * 1,000 * 0.5 = $30 per period

Yield = 5.5% / 2 = 2.75%

Price = $1,046

Price after yield increases to 6.7%

Period = 13 * 2= 26 semi annual periods

Coupon = 6% * 1,000 * 0.5 = $30 per period

Yield = 6.7% / 2 = 3.35%

Price = $939.88

Percentage change = (939.88 - 1,046) / 1,046

= -10.14%

You might be interested in
Which of the following is a type of intellectual property?
GuDViN [60]
C: software

in most countries, there are four primary types of intellectual property (IP) that can be legally protected: patents, trademarks, copyrights, and trade secrets.

Copyrights do not protect ideas, but rather the manner in which ideas are expressed (“original works of authorship”) - written works, art, music, architectural drawings, or even programming code for software
5 0
3 years ago
Economic systems differ from one another based on who owns the factors of production and.
Aliun [14]

Economic systems differ from one another based on who owns the factors of production and. <u>Who make decisions regarding what to produce and how it is produced</u>

<u />

<h3>What is Economic systems?</h3>

An economic system is a mechanism by which societies or governments manage and distribute public resources, services, and goods across a geographic region or nation. Economic systems control the factors of display, including land, capital, labor, and material resources.

<h3>What is represented by economic system?</h3>

An economic system is a means with the help of which the government plans and issues accessible services, resources, and things across the country. Economic systems manage aspects of production, combining wealth, labour, physical resources, and industry people.

To learn more about economic system, refer

brainly.com/question/26360576

#SPJ4

Complete Question is,

A. How much resources are available in the economy and where they are located

B. Who make decisions regarding what to produce and how it is produced

C. What kinds of products are produced in the economy and how plentiful they are

D. How big the population is, and the makeup of the population

5 0
1 year ago
When selling convenience goods such as tobacco, newspapers, chewing gum, and potato chips to convenience stores, companies often
valentinak56 [21]

Answer: intensive distribution

                 

Explanation: In simple words, it refers to a marketing strategy under which a company offers its product through as many outlets as possible in the market so that customers can easily find their product when in need.

The core objective of implementing thus Strategy is to make customer satisfied regarding the availability. These strategy is implemented for the products that already have a strong customer base.

Hence from the above we can conclude that the correct option is B.

5 0
3 years ago
Firms face competing pressures in the marketplace–how to achieve lower costs through proven approaches to production, while look
Solnce55 [7]

Answer:

1. Pressures for local responsiveness may make it difficult to ______________________________.

 

monitor and adapt to changing customer tastes in a large number of foreign markets

2. __________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

Localization strategy

3. ___________________________ is the most appropriate strategy when the firm simultaneously faces strong pressures for both cost reductions and local responsiveness.

 

Transnational strategy

4. A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) _______________________.

international strategy

5. Markets are dynamic, and any firm will face competition. In time, international and localization strategies tend to become less viable, and managers need to ________________________________.

orient their companies toward either a global standardization or transnational strategy  

Explanation:

When a company's global business activities are coordinated via cooperation and interdependence between its head office, operational divisions, and internationally located subsidiaries or retail outlets, the entity tends to realize more competitive advantages than when it uses a single strategy.  This is why the transnational strategy is offering the best alternative for international businesses in the globalized economy.

7 0
3 years ago
Read 2 more answers
Hart Attorney at Law experienced the follwoing transactions in 2016, the first year of operations:
Korolek [52]

Answer:

I used an excel spreadsheet since there is not enough room here.              

Explanation:

Download pdf
6 0
3 years ago
Other questions:
  • Which of the following elements of a process most directly impacts or affects process capabilities? Multiple Choice Activities I
    15·1 answer
  • Farmer Brown contracts to buy two tracts of land from Farmer Sal. Both parties believe that the two tracts are adjacent, but in
    8·2 answers
  • Does it make sense for ethan to take a year off of school to raise the money?
    6·2 answers
  • Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one uni
    14·1 answer
  • The table shown below gives the short-run total cost function Noel’s window cleaning firm. This firm competes in a perfectly com
    12·1 answer
  • Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result
    15·1 answer
  • At a potluck, everyone brings his or her favorite dish to share. gavin decides to avoid the foods he has never heard of before a
    8·1 answer
  • Eight methods for improving intercultural communication
    15·2 answers
  • What is the difference between a closed shop and a lockout
    9·1 answer
  • Arjen owns investment A and 1 bond B. The total value of his holdings is 1,529 dollars. Investment A is expected to pay annual c
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!