Answer:
The answer would be (B) but their is still a chance that it is C or D
and not the other ones why is it B well because b is only reasonable one A is just
Answer:
B. Chain weighted Index
Explanation:
Chain weighted index is a technique that measures changes in price and spending patterns of individuals and economy. It is an alternative form to the traditional consumer price index. It is used in calculating changes in price using average price from base year gotten from consecutive years. The chain weighted index puts products substitutions and other factors that affects spending made by consumers into consideration. Chain weighted index helps in estimating the real GDP.
Answer:
$ 15.63
Explanation:
The present value of the 17th coupon is the semi-annual coupon discounted at the discount factor that reflect that the payment is the 17th of the 20 coupons payments payable by the bond as done below
semi annual coupon=$1000*6%*6/12=$30
The discount factor applicable is 1/(1+7.82%/2)^17=1/(1+3,91%)^17=0.520984902
The present value of the 17th coupon=coupon amount*discount factor
=$30*0.520984902
=$15.63
The present of the 17th coupon is $ 15.63
This is then applied in bond duration calculation
