a bond has a macaulay duration of 6.25 years. what will be the percentage change in the bond price if the yield to maturity increases from 6% to 6.4%?
Answers
The percentage change in bond price if yield to maturity increases from 6% to 6.4% is -2.42%.
What is a bond?A bond is a sort of financial instrument in which the issuer owes the bearer a debt and is obligated, based on the terms, to repay the bond's principal at maturity as well as interest over certain period of time. With the use of bonds, a borrower can access outside funding for short-term investments or, in the case of government bonds, for the payment of current expenses. Bonds and stocks are both regarded as securities, but the primary difference between the two is that bondholders have a creditor stake in the company while stockholders have an equity stake. In terms of creditors, bondholders take precedence over stockholders. This indicates that they would be compensated in the case of bankruptcy before investors but after unsecured creditors.
Percentage change in the bond price = -6.25*(0.064 - 0.06) / 1 + (0.06/2)
= -6.25 * 0.004 / 1+0.03
= -6.25 * 0.004/1.03
= -0.0242
= -2.42
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Related Questions
What is the best way to avoid botulism in food handling
Answers
Answer:
To prevent foodborne botulism: Use approved heat processes for commercially and home-canned foods (i.e., pressure-can low-acid foods such as corn or green beans
Explanation:
How can you use feedback from your clients?
a. To practice reflective listening
b. To improve your effective communication
c. To improve your trust and rapport with your clients
d. To improve your skills and craft
Answers
Scott and Mary have accepted a three-year international relocation for work. Both are still paid in U.S. dollars, and their paychecks are automatically deposited to a U.S. Bank. When they need cash, they use local ATMs that allow them to withdraw funds from their U.S. bank, but the ATM gives them the equivalent in local currency. Which type of system does the U.S. Bank use to transfer money almost instantly, and in the currency needed by the user?
Answers
Answer:
The answer is "Electronic Funds Transfer".
Explanation:
It is a financial exchange electronically, which is also known as direct deposit salary services with ATM, which Cash subsidies among buyer marketing authorization, which implies digitally moving funds from one bank to the next. It's accomplices through the exchange of paper currency or certificates. The bank account is among the most popular applications of EFT.
Sheridan Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2018, Sheridan Company reports the following activity:Sales on account $2110000Cash sales 1120000Decrease in accounts receivable 916000Increase in accounts payable 111000Increase in inventory 79000Cost of good sold 1571000What is the amount of cash collections from customers reported by Sheridan Company for the year ended December 31, 2018?
Answers
Sheridan Company reported $1,194,000 as the amount of cash collections from customers for the year ended December 31, 2018.
To determine the amount of cash collections from customers, we need to consider the sales on account and the decrease in accounts receivable.
Sales on account: $2,110,000
Decrease in accounts receivable: $916,000
The decrease in accounts receivable indicates that less money is owed by customers at the end of the year compared to the beginning. This means that cash has been collected from customers.
To calculate the cash collections from customers, we can use the formula:
Cash collections from customers = Sales on account - Decrease in accounts receivable
Cash collections from customers = $2,110,000 - $916,000
Cash collections from customers = $1,194,000
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The school zone has posted speed limits of 25mph during school hours. Define Incentives, and provide an example of one negative incentive
and an example of one positive incentive that could be used to encourage motorists to obey the speed limit.
Answers
Answer:
To encourage someone to do something.
Explanation:
Incentives is defined as a thing that encourages someone to do something. One negative incentive is to charge a big fine on the motorists for the high speed in the school hours so that they obey the laws strictly while on the other hand, example of positive incentive is to give rewards or gifts or medals to those who obeys the law of speed limits in the school hours.
In your words with detailed information please discuss why Cyber Security in an important topic to understand for Entrepreneurs and identify at least 3 areas that would be most important to you from your perspective as an Entrepreneur.
Answers
Cybersecurity is an important topic for entrepreneurs to understand since the majority of businesses nowadays rely heavily on technology to store and process sensitive data, which can include customer information, financial data, and intellectual property.
Cyber threats have become a major concern for businesses and individuals alike, and a single breach can have far-reaching and devastating consequences. Entrepreneurs must take cybersecurity seriously to protect their own data and their clients’ information. Here are three areas that are critical for entrepreneurs to consider when it comes to cybersecurity:
1. Network Security: Network security refers to the measures taken to protect a company's computer network infrastructure. This can include firewalls, antivirus software, and intrusion detection and prevention systems. Entrepreneurs must ensure that their networks are secure by implementing proper security protocols and monitoring network traffic for any suspicious activity.
2. Data Protection: Data protection involves securing sensitive data such as financial information, customer records, and intellectual property. Entrepreneurs must implement strong encryption and authentication measures to prevent unauthorized access to their data, and ensure that their data backups are stored in secure locations.
3. Employee Training: One of the most overlooked areas of cybersecurity is employee training. Entrepreneurs must educate their employees on how to identify phishing emails, secure their devices, and protect company data. It only takes one employee clicking on a malicious link to compromise an entire network, so employee education is a critical aspect of cybersecurity.
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What is the best animal?
Answers
Answer: The answer is Dogs
Explanation: Dogs are the best animal because They're not just popular- historically, the symbiotic relationship between dogs and people helped both species survive.
An innovative business idea that no one has never had
Answers
An innovative business idea that no one has never had is Offering virtual assistance to other businesses.
What is innovative business idea ?innovative business idea can be described as an idea in business that cn be developed so that it can be a way to earn a living by providing the services or the goods to the consumer.
It should be noted that this innovation can be the one that no one has ever done or the modification of the one that has been in exisitence, however providing the virtual assistance serves as one of the innovation in business that can ring profit.
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Complete question:
State An innovative business idea that no one has never had
What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives
Answers
Answer:b
Explanation:
When should I file a complaint with the Better Business Bureau?
Answers
The Better Business Bureau (BBB) is an organization that helps consumers resolve complaints about businesses and promotes ethical business practices. If you have had a negative experience with a business and are not satisfied with the company's response to your complaint, you may consider filing a complaint with the Better Business Bureau.
The Better Business Bureau should be contacted when you have attempted to resolve a dispute with a business and have not received a satisfactory resolution. For example, if you have purchased a product or received a service from a company and it was not as advertised, or if the company has failed to fulfill a promise or commitment made to you, you may consider filing a complaint with the Better Business Bureau.
It is important to note that the Better Business Bureau is not a government agency and does not have the power to force businesses to resolve complaints. However, they do have a process in place to mediate disputes and help consumers resolve issues with businesses. By filing a complaint with the Better Business Bureau, you are taking advantage of a valuable resource that can help you resolve disputes with businesses in a fair and impartial manner.
Overall, the Better Business Bureau serves as a resource for consumers to resolve complaints about businesses and to promote ethical business practices. If you have had a negative experience with a business, consider filing a complaint with the Better Business Bureau to seek a resolution.
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When a firm has ______, it can place more emphasis on other objectives
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When a firm has mission planning, it can place more emphasis on other objectives. Here, you determine the most effective strategy for achieving your goal.
Make a plan for how you're going to get there. Because practically no strategy is perfect the first time around, prepare for unforeseen goal circumstances. Only the elements that are most crucial to the organisation should be highlighted in the firm mission statement.
It should be succinct, lucid, instructive, straightforward, and direct. It firm should steer clear of flowery language, cliches, and generalisations and place a strong emphasis on the organization's goals and the individuals it serves. Mission planning strategy is a task that frequently necessitates communication between numerous entities.
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MOTIVATION TIME
Success doesn’t just find you. You have to go out and get it.
Answers
Answer:
thnak u that made my day
Explanation:
Tim received a letter from his state college stating that he had been expelled from the school. The letter stated his finance professor reported him to the Dean's office for cheating and that a committee had decided to expel him. He was reminded in the letter he had been disciplined earlier that same year for plagiarizing a term paper. Tim believes his due process rights have been violated by the college. Discuss what factors should be considered to determine the validity of Tim's claim?
Answers
Answer: He should make an appeal of not given a notice and the neutral fault finding should be introduced
Explanation:
They are something's that Time has to consider to challenge the expulsion already prepared for him. He should make an appeal to a court or a higher authority for a reversal of the decision while doing this he should let the court know that he wasn't notified earlier about schools decision and that a neutral fault finder process should be introduced to investigate the whole scenario.
The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favorable. What does the company use as a standard price per yard of material for its safety suits?
Answers
Answer:
the standard price per yard is $6.25
Explanation:
The computation of the standard price per yard is shown below;
Material quantity variance = Standard Price × (Actual quantity - Standard quantity)
-$5,000 = Standard price × (10,000 - 10,800)
Thereore Standard price = -$5,000 ÷ (-800)
= $6.25
Hence, the standard price per yard is $6.25
We simply applied the above formula so that the standard price per yield could come
kubin company’s relevant range of production is 11,000 to 14,000 units. when it produces and sells 12,500 units, its average costs per unit are as follows:
Answers
The average cost per unit increases as the number of units produced decreases.
Given the information, Kubin Company's average costs per unit are Direct materials: $7.00,Direct labor: $4.00,Variable manufacturing overhead: $1.50,Fixed manufacturing overhead: $5.00,Average cost per unit: $17.50.The fixed manufacturing overhead per unit is constant, regardless of the number of units produced. The variable manufacturing overhead per unit decreases as the number of units produced increases. This is because the fixed costs of variable manufacturing overhead are spread over a larger number of units. The direct materials and direct labor costs per unit are also constant, regardless of the number of units produced.
This is because the fixed manufacturing overhead costs are spread over a smaller number of units, which increases the per unit cost.
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Which of these describes information that can appear in a consumer’s credit report?
A. The name of a company that gave the consumer a car loan two years ago
B. The amount of money that the consumer loaned to a family member
C. The amount of money the consumer will need to borrow in the next five years
D. The name of a store where the consumer pays cash for all purchases
Answers
Answer:
A. The name of a company that gave the consumer a car loan two years ago
Explanation:
A credit report is the statement that contains the information related to your credit activity & the present credit situation like history of loan payment, the status of your credit accounts. This would help lenders to use these reports whether they will give you loan and if they are agree than what rate of interest they would offer you
So according to the given situation, the option A is correct
According to the video, which workers traditionally become Construction Managers?
help plsssssssssssssssssssssssssss
Answers
Answer:
A is the answer
Answer:
the answer is construction craftspeople with many years of experience
Explanation:
Select the items that are needs from your bank statement. ABC BANK Available Balance $230.00 Cell phone plan$45 Rent$400 Car insurance$60 Backpack$10 Electric bill$60 Car payment$250 Submit
Answers
Answer:everything but the backpack
Explanation:
What does SSQ stand for?
Answers
Answer:
Special Skills Qualification (most likely)
Explanation:
There are many different things it could stand for, however since you did not specify the context of this, I am assuming it would be this as it is most common.
What are the equilibrium price and quantity of yo-yos?
Price Qd Qs
$1 100 10
$2 80 35
$3 60 60
$4 40 85
$5 20 110
Answers
A mining company, with a stable growth of 1%, has net income of $50 million and the market value of its equity is $250 million. The company decides to increase its dividend payout ratio by 2%. What will most likely happen to the company's price-to-earnings (P/E) ratio? The P/E ratio will decrease 4 O The P/E ratio will increase O The P/E ratio will remain unchanged
Answers
The P/E ratio will most likely decrease.The P/E ratio is calculated by dividing the current market price per share by the earnings per share (EPS) of a company.
In general, the P/E ratio indicates how much investors are willing to pay per dollar of earnings. The P/E ratio is a critical metric since it indicates whether a company is overvalued or undervalued.The company has a stable growth of 1 percent, net income of $50 million, and the market value of its equity is $250 million.
They intend to increase the dividend payout ratio by 2%.To compute the P/E ratio, we must first determine the earnings per share (EPS) of the company, which is the net income divided by the total number of outstanding shares:EPS = Net income / No of outstanding shares
EPS = $50,000,000 / No of outstanding shares
The dividend payout ratio is determined by dividing the dividends per share (DPS) by the EPS:Dividend payout ratio = Dividends per share / Earnings per share.Dividend payout ratio = Dividends per share / (Net income / No of outstanding shares)Dividend payout ratio = (2/100) / ($50,000,000 / No of outstanding shares)
Dividend payout ratio = 2No of outstanding shares = (2/100) * $50,000,000 / DPS. When we multiply the number of shares outstanding by the dividend per share (DPS), we get the total dividend paid by the company:Total dividend = No of outstanding shares * Dividend per shareTotal dividend = (2/100) * $50,000,000P/E ratio = Market value per share / Earnings per shareP/E ratio = Market value of equity / Earnings per shareP/E ratio = $250,000,000 / $0.02P/E ratio = 12,500,000Since the net income and the number of shares outstanding have remained unchanged, increasing the dividend payout ratio will reduce the earnings per share (EPS). This will result in a higher P/E ratio. Therefore, the P/E ratio will most likely decrease if the company increases its dividend payout ratio by 2%.
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An S corporation had the following income and expenses: Sales $240,000 Rent expense 25,000 Business meals 5,000 Interest income 1,500 Contributions to qualifying charities 600 IRC Section 179 expense 3,000 Depreciation expense 1,800 What would be reported as ordinary income on the corporation's income tax return
Answers
The amount that should be reported as the ordinary income on the income tax return of the corporation is $210,700.
Sales $240,000
Less: Rent expense ($25,000)
Less: 50% Entertainment expense ($2,500)
Depreciation ($1,800)
Ordinary income $210,700
Ordinary income involved the sales amount, rent expense, 50% of entertainment expense, and the depreciation expense
Therefore, we can conclude that the amount that should be reported as the ordinary income on the income tax return of the corporation is $210,700.
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Who is a microeconomic decision maker?
A. the director of an international trade organization
B. the entrepreneur of a firm
C. the finance minister of a government
D. the governor of a central bank
Answers
Answer:
the finance minister of a government
indra, a loan officer with first star bank, was asked by a customer if first star would join the chamber of commerce to meet potential customers and become more embedded in the local community. believing this is a great idea, indra approaches her manager, deondre, about joining the chamber. deondre said to indra, because the cost of membership is over $1,000 and you will have to leave the office to attend meetings, i will have to get approval from the vice president above me. first star bank is an example of an organization with
Answers
First star bank is an example of an organization with a centralized authority.
Centralized authority in an organization occurs when there's a centralized source who makes all or most of the decisions in the organization.
Centralized authority typically comes from the top. In such a case, most of the decisions would be taken by the person.
Based on the question asked, since Indra needs to get approval from the vice president, then a centralized authority exists in the bank.
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Answers
Answer:
tank us.
Explanation:
Which statement is true?
online credit is more expensive than bank credit
online credit is less expensive than bank credit
online credit and bank credit are equally expensive
online credit is harder to obtain than bank credit
Answers
Answer:
online credit is less expensive than bank credit
Explanation:
Online lenders are likely to charge lower rates than banks due to the differences in operating expenses. Online lenders do not incur the cost of operating from a physical building, such as rent and maintenance. They do not have high employee cost as compared to banks. Due to these reasons, online lenders charge lower fees and lower interest rates.
Sometimes online loans appear expensive, but it's because they are unsecured loans. A close comparison between different types of loans will show online lenders offer cheaper loans.
The set of skills and knowledge needed to make informed decisions about
money matters is called financial literacy.
A. True
B. False
Answers
I’m pretty sure
c) It seems clear that the future is likely to involve more technology, not less, so that engineers will face demands for Innovation and Invention design of technical systems of unprecedented complexity. Distinguish between Innovation and Invention as applied to technological Design.
Answers
Innovation involves improving existing technology through new ideas and methods, while invention is the creation of entirely new technology or systems. Both are crucial for engineers in the face of increasing technological complexity.
In the context of technological design, innovation and invention play distinct roles. Innovation involves improving upon existing technology by introducing new features, enhancing functionality, or finding more efficient ways of achieving a goal. It focuses on incremental advancements and refinements to existing systems. Engineers involved in innovation work with the foundation already in place and seek to optimize it further. For example, a smartphone company may innovate by introducing a faster processor or a more advanced camera system.
On the other hand, invention involves the creation of entirely new technology or systems. It represents a breakthrough moment when something groundbreaking and unprecedented is brought into existence. Invention often requires a high level of creativity and a deep understanding of scientific principles. Engineers involved in invention push the boundaries of what is currently known and strive to develop revolutionary concepts. For instance, the invention of the internet or the development of electric vehicles are examples of major technological breakthroughs.
In summary, innovation focuses on improving and refining existing technology, while invention involves the creation of entirely new technology or systems. Both processes are crucial for engineers in the face of increasing technological complexity, as they provide avenues for progress, advancement, and meeting the demands of the future.
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true or false, each state mandates a soecific procedure for incorporating a business
Answers
False. Each state does not mandate a specific procedure for incorporating a business.
While there are general guidelines and requirements for incorporating a business in the United States, the specific procedures can vary from state to state. Each state has its own laws and regulations regarding the incorporation process, including the required forms, fees, and documentation. Some states may have more streamlined processes, while others may have more complex requirements.
It's important for individuals or entities looking to incorporate a business to research and follow the specific procedures outlined by the state in which they wish to incorporate. This typically involves filing the necessary documents with the appropriate state agency, such as the Secretary of State's office, and fulfilling any additional requirements specific to that state.
Therefore, it is false to say that each state mandates a specific procedure for incorporating a business, as the procedures can vary.
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The housekeeping and maintenance departments in a company are engaged in a conflict because they have overlapping responsibilities. This is an example of conflict based on:
A. Jurisdictional ambiguity
B. Interdependence
C. Status inconsistencies
D. Common resources
E. Specialization
Answers
The conflict between the housekeeping and maintenance departments in a company is an example of conflict based on jurisdictional ambiguity.
This term refers to situations where there is uncertainty or ambiguity regarding which department or individual is responsible for a particular task or responsibility. In this case, both departments have overlapping responsibilities which makes it unclear who is accountable for certain tasks.Jurisdictional ambiguity is a common source of conflict in organizations, particularly when there are multiple departments or individuals with overlapping responsibilities. When there is ambiguity about who is responsible for what, it can lead to confusion, delays, and frustration among employees. It can also result in duplication of efforts or tasks being neglected altogether.In this case, the conflict arises because both the housekeeping and maintenance departments are responsible for maintaining the physical infrastructure of the company. For instance, both departments may be responsible for fixing broken equipment, cleaning up spills, and ensuring that the workplace is safe and comfortable for employees. As a result, it can be challenging to determine which department is responsible for what task.
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