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Usimov [2.4K]
3 years ago
13

Compute the modified duration of a 9% coupon, 3-year corporate bond with a yield to maturity of 12%.

Business
1 answer:
iragen [17]3 years ago
6 0

Answer:

C. 2.45

Explanation:

Pv of cash flow

1000x9%/(1+0.12)

= 90/1.12

= 80.36

Weight = 1

Weighted pv of cash flow = 80.36

Pv of cash flow

= 1000x9%/(1+0.12)²

= 90/1.2544

= 71.75

Weight = 2

Weighted pv of cash flow = 71.75x2

= 143.5

Pv of cash flow

= (1000+1000*9%)/(1+0.12)³

= 1090/1.404928

= 775.84

Weight = 3

Weighted pv of cash flow

= 775.84x3

= 2327.52

Total pv of cash flow = 80.36+71.75+775.84

= 927.95

Total weight of cash flow pv =

80.36+143.5+2327.52

= 2551.38

Duration = weighted pv/pv

= 2551.38/927.95

= 2.75

Modified duration =

Duration/1+0.12

= 2.75/1.12

= 2.45

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Answer:

Pricing can vary for each customer.

Explanation:

Under the B2B, the manufacturer sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.

Hence, pricing can vary for each customer in a business-to-business (B2B) e-commerce purchases because companies that are engaged in B2B are able to improve their performance and cut down the costs of procurement for goods and services.

Business to business (B2B) markets differ from Business to consumers (B2C) markets because salespeople personally call on business customers to a far greater extent than they do consumers.

3 0
3 years ago
Lunchco Inc. produces picnic tables in a two-step process. Pretreated wood is cut in the Cutting Department and then the lumber
babunello [35]

Answer: company’s direct labor budget = $320000

Explanation:

Given that,

Standard hourly labor rate in the Cutting Department = $12

It takes 30 minutes of direct labor time to cut the lumber

Tables take one hour to assemble

Standard hourly rate in the Assembly Department = $10

Lunchco’s production budget = 20,000

Cutting Department =  production budget × direct labor time × Standard hourly labor rate

= 20000 × 0.5 hours/unit × $12/unit

= $120000

Assembly Department = production budget × Tables take one hour to assemble  × Standard hourly labor rate

= 20000 × 1 hour/unit × $10/unit

= $200000

Therefore,

company’s direct labor budget = Assembly Department + Cutting Department

= 200000 + 120000

= $320000

5 0
2 years ago
Which best describes a way people can use personal loans? to buy a house to buy a car to pay for college to pay for groceries.
Bas_tet [7]

The best way people can use their Personal loans is to buy or pay for groceries. As there are other separate loans for the things like car, home and pay for college.  

<h3>what is a personal loan?</h3>

A loan is issued for non-essential purposes, usually to a person with a good credit score who is not required to submit collateral to back up the loan.

A personal loan can be utilized for practically any reason, including settling credit card debt, home upgrades, and large purchases.

Thus option D is correct.

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brainly.com/question/19106746

4 0
2 years ago
Read 3 more answers
Leaders at ElectroExpo Inc. want to develop a results-oriented organizational culture. To do this, they devise a new system to m
neonofarm [45]

Answer: b. The leaders should find ways to enable the employees to see the value in changes that are needed for the organization to succeed

Explanation:

With regards to the information given in the question, the best option will be for the leaders to find ways to enable the employees to see the value in changes that are needed for the organization to succeed.

In every organization, communication is key between the management and the employees. In this case, the leaders should inform the employees about the reason that they are taking the decision and how the decision will have an impact on the organization.

Taking legal steps against the employees or laying them off isn't the right thing to do. The employees should be made to see the value in the changes to be made.

Therefore, the correct option is B.

5 0
3 years ago
ou plan to deposit $5,900 at the end of each of the next 20 years into an account paying 10.8 percent interest. a. How much will
Furkat [3]

Answer:

$326,622.73

Explanation:

Calculation to determine How much will you have in your account if you make deposits for 20 years

Using this formula

Future value = Annuity × {( 1 + interest rate) ^ time period - 1} ÷ interest rate

Future value = $5,900 × {( 1 + 0.097 ^ 20 years - 1} ÷ 0.097

Future value= $5,900 × 55.3597842916

Future value= $326,622.73

Therefore the amount you will have in your account if you make deposits for 20 years is $326,622.73

6 0
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