Treatment and enforcement. There is a quizlet on it, just copy and past this question on google and it's the first that pops up.
Low-income countries have cultures that value economic survival. These type of countries do not have a lot of high paying jobs and the job market is very unstable, so citizens find it imperative to have enough income to survive. These types of countries do not have much in the way of entertainment culture or pop culture, due to people having so little extra money to spend on both.
Answer:
10.25%
Explanation:
The requirement which is Coupon rate can be calculated using EAR formula.
EAR = (1 + APR/n)^n - 1
EAR = (1 + 10.00%/2)^2 - 1
EAR = (1 + 0.1/2)^2 - 1
EAR = (1 + 0.05)^2 - 1
EAR = (1.05)^2 - 1
EAR = 1.1025 - 1
EAR = 0.1025
EAR = 10.25%
10.25% is the coupon rate for annually paying bond.
Answer:
Bond Price = $616.6938765 rounded off to $616.69
Explanation:
To calculate the quote/price of the bond today, we will use the formula for the price of the bond. Assuming the bond is a semi annual bond, the semi coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.032 * 6/12 = $16
Total periods (n) = 16 * 2 = 32
r or YTM = 0.073 * 6/12 = 0.0365 or 3.65%
The formula to calculate the price of the bonds today is attached.
Bond Price = 16 * [( 1 - (1+0.0365)^-32) / 0.0365] + 1000 / (1+0.0365)^32
Bond Price = $616.6938765 rounded off to $616.69