Answer: -10.14%
Explanation:
Original Price of bond:
Interest is paid semiannually so some variables need to be adjusted:
Period = 13 * 2= 26 semi annual periods
Coupon = 6% * 1,000 * 0.5 = $30 per period
Yield = 5.5% / 2 = 2.75%
Price = $1,046
Price after yield increases to 6.7%
Period = 13 * 2= 26 semi annual periods
Coupon = 6% * 1,000 * 0.5 = $30 per period
Yield = 6.7% / 2 = 3.35%
Price = $939.88
Percentage change = (939.88 - 1,046) / 1,046
= -10.14%
Answer:
true the reason why is because you are giving away more stuff than you are geting
Explanation:
Answer:
D : project's rate of return is less than the required rate of return.
Explanation:
Net present value (NPV) is a projects evaluation technique that analyzes the present values of predicted future revenues and expenses. In other words, NPV is the current value of future inflows minus costs. In calculating the NPV, future values are discounted with an appropriate discount rate to give the present value.
The NPV can be a positive, zero or negative. Projects with positive NPV are preferred because they are considered profitable. A negative NPV signals that the present value of the expected inflows is lower than the current value of the projected cost at the required discount rate. If the discount rate is maintained, the project is a loss-making venture.
The use of a very high discount rate may give any projects a negative NPV.
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Answer:
We can first order the data from smallest value to largest value:
461
549
745
1500
1800
2000
3750
4795
68000
a) The mean is 9289, and the median is 1800
b) The data does have an outlier, which is 68000, because it is more that three standards deviations away from the mean, excluding this value, our new mean is 1950 and our new median is 1650. We can see that the greatest change in value was for the mean.
c) the median is more appropriate because the median is less sensitive to outliers. The mean can be easily swayed by outliers in either way, and this can give an erroneous impression of the data.
