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adoni [48]
3 years ago
6

2. Finding the Maturity You've just found a 10 percent coupon bond on the market that sells for par

Business
1 answer:
kirill [66]3 years ago
6 0

Answer and Explanation:

The computation of the maturity of the bond is as follows;

When the bond sales at par that means the future value is equivalent to the present value. Also the par value is considered as a future value and we assume the par value be $1,000. Also the coupon rate and the market rate is the same i.e. 10%

Now

Present value = $1,000

Future value = $1,000

PMT = 10% of $1,000 = $100

RATE = 10%

The formula is shown below:

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

The present value comes in negative

After applying the above formula, the maturity would be

As it shows #VALUE so it is not able to find therefore the maturity would be equal to the par value i.e. $1,000

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Identify whether each example in below is a programmed or nonprogrammed decision.
insens350 [35]

Answer:

The answers are:

1. nonprogrammed decision

2. programmed decision

3. nonprogrammed decision

4. programmed decision

Explanation:

Programmed decisions are decisions for which the decision maker has developed certain set of guiding rules for, over time, as a result of repetition. Here the results can be predicted with a reasonable degree of accuracy, because the situations surrounding the circumstances are well known. In our example, feeding the puppy overtime has become routine, hence it is a programmed decision, also, the choice of tea at Starbucks is a programmed decision because you know what to expect and that is because you have tried the other varieties and come to a conclusion on the choices to be made which is well understood.

On the contrary, a nonprogrammed or nonroutine decision is a decision that is based on circumstances that are not entirely predictable to a reasonable extent. The structure of the circumstances surrounding the decision to be made is not well understood. There are so many "what ifs". These decisions can be said to be novel, and they are not routine. In our example, the choice of the constructor to use for your kitchen design and the decision by the accounting firm on whether to renew the lease or relocate are nonprogrammed because these decisions are not everyday decisions and the decision makers are not certain what the outcomes will be depending on the choices they make, if they will eventually regret it or not.

5 0
4 years ago
You need to upgrade memory in a system but you don't have the motherboard documentation available. you open the case and notice
Elina [12.6K]
The three yellow slots proably indicate triple channeling, which means the board uses DDR3 DIMMA. To know for sure, remove a DIMM and look for the position of the notch on the DIMM. 
8 0
3 years ago
Angelo is a wholesale meatball distributor. He sells his meatballs to all the finest Italian restaurants in town. Nobody can mak
LekaFEV [45]

Answer:

Meatball prices will exceed marginal cost.

Explanation:

Taking on account that Angelo is the only meatball's provider in the area, he is the only actor in his market segment. If he wants to maximize the profit for his business the meatball prices will exceed marginal cost; there are two ways to make it possible for the product. the first option is to reduce the marginal cost through the reduction on the cost prices, it will reduce the total marginal cost and give a higher profit.

The second option involves rising the prices, in this case, as Angelo has the market's control he can rise the prices,as a result, the marginal cost will be the same but the meatball's prices will be higher increasing the profit.

3 0
3 years ago
On June 30, Setzer Corporation had a market price of $14 per share of common stock. For the previous year, Setzer paid an annual
MArishka [77]

Answer:

Dividend Yield = 7%

Explanation:

<em>The dividend yield is the proportion of the market price that is earned as dividend. The higher the dividend yield the better for the investor.</em>

<em>The dividend yield is calculated as follows:</em>

Dividend yield = Dividend paid /market price per share × 100

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5 0
3 years ago
A zero coupon bond: is sold at a large premium. can only be issued by the U.S. Treasury. has a market price that is computed usi
kupik [55]

Answer:

A zero coupon bond:

A. is sold at a large premium.

B. has a price equal to the future value of the face amount given a positive rate of return.

C. can only be issued by the U.S. Treasury.

D. has less interest rate risk than a comparable coupon bond.

E. has a market price that is computed using semiannual compounding of interest.

Answer is : B

Explanation:

In classification of bonds we have a unique type of bond known as Zero-coupon bonds also know as Pure discount bonds, unlike traditional bonds they don’t pay coupon instead they are sold on discount basis and on maturity the bondholder receive a par value, for this reason the price will be at a discount on sale and on maturity be redeemed at par price showing a positive rate of return.

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