Answer:
Explanation:
- The bond has 8% coupon paid semiannually, and those bonds sell at their par value.
- Since the bond sales at par value, Market rate (Yield) = Coupon rate =8%
<u>Second bond:</u>
- Semiannual coupon amount = 1000 x 8%/2 = $40
- Time to maturity = 6 years = 12 semiannual periods
- Semiannual Yield = 8%/2 = 4%
To get price of this bond we will use PV function of excel:
= PV (rate, nper, pmt, fv, type)
= PV (4%, 12, -40, -1000, 0)
= $1053.32
- Price of this bond = $1,053.3
Answer:
1. Price ceiling, Binding
2. Price ceiling, Binding
3. Price floor, binding
Explanation:
Price ceiling is a government or group control limit on how high a product, commodity or service can be charged.
Price floor is a government or group limit on how low a product, commodity or service can be charged.
Binding simply means you are legally bound to something while non-binding means you are not legally bound to it.
Answer and Explanation:
Demographic: the demographic aspect in looking at market segmentation variables in his coffee business would consider such things as age brackets, gender and different groups of population that would be interested in what his business aims to offer. Individuals who are in the older age brackets such as from 30-70 would be interested in coffee. Also these individuals are usually educated
Geographic:
This variable would consider where consumers are located geographically. Therefore are customers able to access the coffee shop easily I'm terms of proximity. How convenient is it to move to to the coffee shop from the customers location?
Psychographic:
what is customers attitudebor lifestyle ? Are customers thorough about the kind of coffee they want. Will customers accept to pay higher for higher quality coffee.
Behavioral: customers may consider the coffee shop a relaxation spot or a place to hangout with friends and family while enjoying a nice cup of coffee. What does this group do most and associate coffee with?
Answer:
The correct answer is letter "C": Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
Explanation:
Short-term disability is the type of employee insurance plan that gives compensation to the workers in front of injuries that are not related to work or illnesses that do not allow employees to develop their regular duties. The coverage starts between 1 to 14 days after workers suffer a condition that does not allow them to work. This type of benefit has a monthly limit which is an advantage for the firm, being this the reason why most employers offer short-term disability coverage.
