Answer:
$1,115.58
Explanation:
Calculation to determine how much should you be willing to pay for this bond
Using this formula
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Where,
Par value= $1,000
Cupon= $35
Time= 10*4= 40 quarters
Rate= 0.12/4= 0.03
Let plug in the formula
Bond Price= 35*{[1 - (1.03^-40)] / 0.03} + [1,000/(1.03^40)]
Bond Price= 809.02 + 306.56
Bond Price= $1,115.58
Therefore how much should you be willing to pay for this bond is $1,115.58
Medical, Disability, and Life Insurances
Answer: Current Price $26.65
Explanation:
Rate of return = 12.5%
dividends = $1.98
Expected Price (in a year from now) Pe= $28
Current price = Pc
R = (Pe - Pc + D)/Pa
0.1250 = (28 - Pc + 1.98)/Pc
28 - Pc + 1.98 = 0.1250Pc
-Pc - 0.1250Pc = - 28 - 1.98
- 1.125Pc = -29.98
Pc = -29.98/(-1.1250Pc) = 26.64888889
Pc = $ 26.65
The answer for your problem is a
Answer:
A) define the goals. (part of define the problem)
Explanation:
The 5 stages of the Six Sigma process (DMAIC) are:
- <u>D</u>efine the problem: involves defining the problem statement ⇒ the reasons for creating or improving the process ⇒ define the goals of the process ⇒ establish a timeline ⇒ determine the scope of the project ⇒ choose the team that will be in charge of carrying out the project.
- <u>M</u>easure or quantify the problem.
- <u>A</u>nalyze and identify the cause of the problem.
- <u>I</u>mprove by solving the root cause of the problem and verify the improvement.
- <u>C</u>ontrol the improvements and pursue perfection.
