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Amanda [17]
3 years ago
10

There is a bond with a coupon of 7.6 percent, seven years to maturity, and a current price of $1,032.20. What is the dollar valu

e of an 01 for the bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Dollar value of an 01
Business
1 answer:
Radda [10]3 years ago
3 0

Answer:

The dollar value of an 01 is:

$78.4472

Explanation:

a) Data and Calculations:

Bond coupon = 7.6%

Current price = $1,032.20

The yield to maturity value = $1,032.20 * 1.076 = $1,110.6472

Dollar value of an 01  = $1,110.6472 - $1,032.20 = $78.4472

b) In calculating the dollar value of the bond, which is a measure of the change in the value of the bond portfolio for every 100 basis point change in the interest rates, this is referred to as DV01 (that is, dollar value per 01).  Often denoted as 100 basis points (bps), 0.01 is equivalent to 1 percent.

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Answer:

Warner Bros focuses a lot on the people as an organization whether it’s the employees or the customers. The key people involved are Kevin Tsujihara (Chairman and CEO), Edward A. Romano (Vice Chairman), Toby Emmerich (President and Chief Content Officer). Its parent company TIME Warner has over 31000 employees. The Warner Bros company and its people focus on diversity that helps in multicultural expansion, workforce development and inclusive growth. It does not differentiate between its customers and focus on providing quality content to all across the globe.

I would suggest that only advertisement doesn't make people to buy it.

7 0
3 years ago
Le Jouet is a profit-maximizing firm that produces toy trains. In France, its home country, it enjoys unchallenged market power
marysya [2.9K]

Answer:

The demand that Le Jouet faces for toy trains in France is less elastic than in Russia.

Explanation:

This is the statement that best describes the panorama that Le Jouet faces in France. When comparing the markets of France and Russia, we learn that the demand for toy trains in France is less elastic than the demand in Russia. Price elasticity refers to a measure of responsiveness of consumers. This measures how responsive consumers are to a price change.

6 0
4 years ago
A successful quality strategy begins with
creativ13 [48]

Answer: An organization that starts and builds quality.

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3 0
3 years ago
If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is ______________.
Jobisdone [24]

Answer:

The amount of cash received from the sale is $1,027,500

Explanation:

In this scenario we first have to know the number of bonds issued and then multiply it by the bond price which is given to us in the question.

The bonds have a total face value of 1,000,000 and one bond is issued at 102.75 which means that the face value of a single bond is 100.

Now in order to find the number of bonds issued we will divide the total face value by the face value of a single bond.

1,000,000/100=10,000.

10,000 bonds were issued at $ 102.75 now in order to calculate the total cash received we will multiply the number of bonds with the issue price.

10,000*102.75=1,027,500

4 0
4 years ago
Complete the right half of the following equation to reflect the unemployment rate reported by the BLS.
Nutka1998 [239]

Answer:

c. 66.67%

Explanation:

Unemployment rate = Number unemployed / Labor force = (2/3) x 100% = 66.67%

5 0
3 years ago
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