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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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In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (a
nata0808 [166]

Answer:

The bond will sell for the amount of $869.17

Explanation:

According to the given data coupon amount = 50/2 = 25

Therefore, in order to calculate the selling price of the bond we would have to make the following calculation:

selling price of the bond = 25 * PVIFA(3%,52) + 1,000 * PVIF(3%,52)

selling price of the bond= 25 * 26.1662 + 1,000 * 0.2150

 selling price of the bond= $869.17

The bond will sell for the amount of $869.17

6 0
3 years ago
Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'
SVETLANKA909090 [29]

Answer:

The production range between 1120,000 and 150,000 is called Relevant range

correct option is c) relevant range

Explanation:

given data

normally produces = 120,000 to 150,000 units

to find out

The production range between 1120,000 and 150,000 is called

solution

The production range between 1120,000 and 150,000 is called Relevant range because there are 2 point

  • if Craft, Inc. need to reduce fixed expenses then production volume is reduce less than 120000 unit
  • if Craft, Inc. need to increase fixed expenses than production volume is increases more than 150000 unit

and if expected fixed expenses will not change than the production volume is 120000 units to 150000 units

so that production range between 1120,000 and 150,000 is called Relevant range

correct option is c) relevant range

7 0
3 years ago
Lapping is best described as the process of________.
Mamont248 [21]

Answer:

b. applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts is the correct answer.

Explanation:

  • Lapping is best described as the process of applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.
  • Lapping is an illegal mode of allotting one consumer's cash to another consumer's account.
  • Lapping usually occurs in smaller businesses where a single person manages payment receipts and consumer billing.
  • Companies can stop and check lapping through conducting regular inspections of payment receipts and also by dividing cashier and billing tasks.

5 0
3 years ago
Robin has moved to a new town during her sophomore year in high school. In order to find a new group of friends, she joins the s
ira [324]

Answer:

Letter d is correct. <u>Coping behavior.</u>

Explanation:

The most suitable alternative to the question is the letter d.

Coping behavior can be defined as behavioral and cognitive efforts that an individual exerts to manage some issues that can be internal or external. This type of behavior is used when it is necessary to deal with great changes.

Therefore coping behavior is a process that an individual finds to manage stressful situations that can cause some type of anxiety.

6 0
3 years ago
Read 2 more answers
Which of these is the largest difference between developed and developing countries?
Nuetrik [128]
<span>As there is no set of options given with the question, we'd go with one difference which is most conspicuous between the two types of countries. That difference is the standard of living and amenities in the incone range of the masses. In developing countries, people still have to give up on necessary amenities which are normal to have in developed countries.</span>
8 0
3 years ago
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