Answer:
Market value at 8% YTM $ 743.2156
at 10% YTM $ 619.6960
Explanation:
Assuming the face value is 1,000 as common outstanding American company's bonds:
Market value under the current scenario:
<u>Present value of the coupon payment:</u>
<u />
Coupon: $1,000 x 5% = 50
time 15 years
rate 0.08
PV $427.9739
<u>Present Value of the Maturity</u>
<u />
Maturity 1,000.00
time 15.00
rate 0.08
PV 315.24
PV c $427.9739
PV m $315.2417
Total $743.2156
If the interest rate in the market increaseby 2% then investor will only trade the bonds to get a yield 2% higher that is 10% so we recalculate the new price:
C 50.000
time 15
rate 0.1
PV $380.3040
Maturity 1,000.00
time 15.00
rate 0.1
PV 239.39
PV c $380.3040
PV m $239.3920
Total $619.6960
Giving a lower price than before
For many things identity theft, to be treated as if they don’t know as much etc
Answer:
The depreciation expense for 2015 is $2,000
Explanation:
The computation of the depreciation expense is shown below:
= (Original cost - residual value) ÷ useful life
= ($35,500 - $4,000) ÷ 7 years
= 4,500
The depreciation for three years would be
= 4,500 × 3 years
= $13,500
The remaining amount would be
= $35,500 - $13,500
= $22,000
So, the depreciation expense for 2015 would be
= ($22,000 - $4,000) ÷ 9 years
= 2,000
. yes, because he didnt pay within the grace period
Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.
Explanation:
The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.
Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.