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anzhelika [568]
3 years ago
10

Consider a 7-year bond with a 9% coupon and a yield to maturity of 12%. If interest rates remain constant, one year from now the

price of this bond will be _________.
Business
1 answer:
Llana [10]3 years ago
5 0

Answer:

(C) Higher.

Explanation:

The computation of the present value in both the cases are as follows:

In the first case

Given that

Assume the par value i.e. future value be $1,000

PMT = $1,000 × 9% = $90

RATE = 9%

NPER = 7

The formula is shown below

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $863.09

In the second case

Given that

Assume the par value i.e. future value be $1,000

PMT = $1,000 × 9% = $90

RATE = 9%

NPER = 6

The formula is shown below

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $876.66

So as we can see that the price of the bond would increased

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Milo files a suit against Nick in an Ohio state court, noting that Nick operates a Web site through which Ohio residents have do
erma4kov [3.2K]

Answer: Nick's web site activities

Explanation: The Role of Courts in a Society. The court is a tribunal which can be presided over by a judge, several judges or a magistrate, and is tasked with hearing and giving out judgement in civil and criminal cases. Courts are important because they help protect our constitutional rights to equal protection and due process under the law. Both criminal and civil courts provide the opportunity for the parties to have their cases heard by neutral judges and/or juries. The court is most likely to have jurisdiction over Nick if Milo’s claim arises from Nick’ web site activities .

6 0
3 years ago
Currently digby is paying a dividend of $19.67 (per share). if this dividend were raised by $3.64, given its current stock price
umka2103 [35]

The dividend yield for Digby is $23.33

<h3>What is Dividend Yield?</h3>
  • A financial ratio (dividend/price) called the dividend yield, which is stated as a percentage, demonstrates how much a firm pays in dividends annually in relation to the price of its stock.
  • Price/Dividend, often known as the dividend yield ratio, is the counterpart of dividend yield.
  • The amount of money a firm pays shareholders for owning a share of its stock divided by its current stock price is known as the dividend yield, which is represented as a percentage.
  • The majority of mature corporations pay dividends.
  • The dividend yields of businesses in the consumer goods and utility sectors are frequently greater than average.
  • The dividends from real estate investment trusts (REITs), master limited partnerships (MLPs), and business development corporations (BDCs) are taxed more heavily than the typical dividend.

Explanation:

Given that

Dividend per share = $19.69

Increase in Dividend = $3.64

Using this formula

Dividend yield = Dividend per share + Increase in Dividend

Dividend yield = $19.69+$3.64

Dividend yield =$23.22

Therefore the Dividend yield will be $23.22

To learn more about Dividend yield with the given link

brainly.com/question/28044310

#SPJ4

6 0
2 years ago
Universal Mines Inc. operates three mines in West Virginia. The ore from each mine is separated into two grades before it is shi
xxMikexx [17]

Answer:

this is a cost minimization problem, but it is missing some numbers, so I looked for similar questions (see attached PDF):

minimization equation = 20x₁ + 22x₂ + 18x₃ (costs per ton)

where:

x₁ = mine I

x₂ = mine II

x₃ = mine III

the constraints are:

4x₁ + 6x₂ + x₃ ≥ 54 (high grade ore)

4x₁ + 4x₂ + 6x₃ ≥ 65 (low grade ore)

x₁, x₂, x₃ ≤ 7 (only 7 days per week)  

using solver, the optimal solution is

2x₁, 7x₂, and 5x₃

a. The number of days Mine I should operate = <u>2 days </u>

b. The number of days Mine Il should operate = <u>7 days </u>

c. The number of days Mine III should operate = <u>5 days </u>

d. The total cost of the operation for next week = <u>$284,000</u>

Download pdf
4 0
3 years ago
Lower interest rates are part of tight money policy.
AVprozaik [17]

The statement, 'lower interest rates are part of tight money policy' is false.

<u>Explanation:</u>

Tight monetary policy which is also known as contractionary monetary policy is undertaken by Federal Reserve to reduce the economic growth that is overheated and to curb fast increasing inflation rate. Here the policy increases the interest rates thereby reducing the borrowing in the economy.

So, the true statement would be 'lowering the interest rates stimulates the borrowing in the economy and it is a part of the expansionary or loose monetary policy'.

6 0
3 years ago
A real estate company places ads on a local newspaper's website. The real estate company pays the newspaper based on how many ti
vlada-n [284]

Answer:

cost per click (CPC) or pay per click (PPC) pricing, the name depends on who provides the service, but the concept is the same.

Explanation:

Companies that use pay per click (PPC) advertising will pay each time a user clicks on their ads to see them. When you open a website there may be several (sometimes more than a dozen) of different advertisements, but the advertiser companies only pays when someone actually clicks on the ad. PPC is the most popular and common advertising in websites and search engines, e.g. Google Ads works this way.

7 0
3 years ago
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