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Ivenika [448]
3 years ago
12

A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000. If the bond matures in 27 years, the bond should se

ll for a price of _______ today.
Business
1 answer:
stepan [7]3 years ago
5 0

Answer:

The bond should sell for a price of $59.74 today.

Explanation:

Zero Coupon Bond is a bond which does not offer any interest payment but it is issued at deep discount amount from the face value of the bond.

Price of Zero Coupon Bond = \frac{F}{( 1 + r )^t}

F = Face / Par Value of Bond = $1,000

r = rate of interest = 11%

n = number of years = 27 years

Price of Bond =  \frac{1000}{( 1 + 0.11)^27}

Price of Bond = $59.74

As Zero coupon bond does not offer any discount so, it is valued much below the par value.

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A Japanese firm issued and sold a pound denominated bond in the United Kingdom. A U.S. firm issued bonds denominated in dollars
wel

The U.S. bond is a Eurobond and the Japanese bond is termed a foreign bond.

Answer: Option C

<u>Explanation:</u>

The bond that has been issued by the firm in the United States of America is denominated in the US dollars only. But it is sold in Japan. So this bond is a Euro bond.

But since the bond issued by the Japanese firm is denominated in pounds. And this pound denominated bond is also sold in the United Kingdom, therefore this bond is a foreign bond and not a euro bond.

5 0
3 years ago
select all that apply what are important characteristics of a market segment? multiple select question. capturable large accessi
Stells [14]

Characteristics of a market segment are capturable, large, accessible, actionable, and definable.

By identifying variances in the response characteristics of various areas of the market, market segmentation is a technique for getting the most market response out of initial marketing resources. Market segmentation is, in this sense, the divide-and-conquer tactic, or the division of the market in order to subdue it.

Market segmentation enables marketers to focus more intently on customer selection and provide the right marketing mix for each selected segment or group of customers with a similar demand. Every division or sector has the option of being chosen as a market target to be attained using a certain marketing strategy.

To know more about Market segmentation

brainly.com/question/27993208

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6 0
2 years ago
The International Nickel Company of Canada is often cited as an example of monopoly. What was the source of the barrier to entry
gogolik [260]

Answer:

A. control of a key resource

Explanation:

The International Nickel Company of Canada was founded in the early 1900´s and it was the result of the merge of three companies, the Carnegie Steel Company, Canadian Copper Company and Orford Copper Company, this is very important because this three companies were merged into a single one that controlled the whole production of Nickel, so they basically created a monopoly by merging with eachother.

6 0
3 years ago
Helppp mee please!!!give me your opinion!
k0ka [10]

Answer:

YES

Explanation:

Information systems can in fact provide solutions to a lot of organizational problems in businesses and companies.  Information Systems can help collect data, statistics, and overall organization. Let's say you are looking into starting a moving business. In order to do that you need to hire employees. An information system such as Indeed can assist you with that. If you are looking to provide invoices to your customers an information system such as Quickbooks can help you with that. There are soo many Information Systems our there that can help a business with any problem.

8 0
3 years ago
Which of the following questions is a macroeconomic issue?
Levart [38]

Answer:

Options A and C touches on macro economic issues

a) What is the future growth prospect for an economy?

c) What effect would a cure for Mad Cow Disease have on the market for beef?

Explanation:

macroeconomics is a branch of economics that deals with the relationship of the major factors in an economy. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation in order to ascertain the behavior and performance of an economy as a whole.

These factors include include supply and demand in a labor market, market failure, competition, price stability, productivity and efficiency.

Therefore, the future growth prospect of an economy and the effect of mad cow disease on the market for beef is a macro economic issue.

5 0
3 years ago
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