calculate the duration of a 5 percent, $1,000 par bond maturing in three years if the yield to maturity is 8 percent and interest is paid semiannually.

Answers

Answer 1

If the yield to maturity is 8% and interest is paid semi-annually, the term of the bond is 7.035 years.

What is a bond, for instance?

There are various types of bonds: the federal government issues Treasury securities; state and local governments issue municipal bonds; and businesses issue corporate bonds. High-yield bonds, agency securities, and asset-backed securities are some more varieties of bonds.

Why is it called bond?

When market interest rates fall below the bond's interest rate, the issuer may decide to call the bond. By paying off the bond and issuing a new bond with a reduced interest rate, the issuer will be able to save money. This is comparable to refinancing your home loan so you can pay less each month.

Briefing:

price of the bond = 1000 since coupon rate = yield

when rates rise by 1%

N = 10, FV = 1000, PMT = 70, rate = 8%

use pV funciton in Excel

price = 932.8992

when rates fall by 1%

N = 10, FV = 1000, PMT = 70, rate = 6%

use pV funciton in Excel

price = 1073.6009

duration = (1073.6009 - 932.8992)/2*1000*1% = 7.035

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Related Questions

How many years would it take for money to increase to 3 times the initial amount at an interest rate of 18% per year?

Answers

Answer:

7 years (to the nearest year)

Explanation:

Given that;

A = amount

P= principal

t = time

r = rate

A =3P(given in the question)

Formula for compound interest;

A = P(1 + r)^t

Substituting values;

3P = P(1 + 18/100)^t

3P/P= (1.18)^t

3 = (1.18)^t

log 3 = t log 1.18

t = log 3/log 1.18

t = 0.4771/0.0719

t = 6.6 years

t = 7 years (to the nearest year)

FILL IN THE BLANK some entrepreneurs may spot an ____________ opportunity while studying abroad when a product available at home is not available where they are studying.

Answers

Some entrepreneurs may spot an entrepreneurial opportunity while studying abroad when a product available at home is not available where they are studying.

When studying abroad, entrepreneurs may come across a situation where a product or service that is commonly available in their home country is not accessible or readily available in the foreign location.

This creates a gap in the market, which can be seen as an entrepreneurial opportunity. Entrepreneurs who recognize this gap can identify the potential to introduce and provide the product or service in the foreign market.

Studying abroad provides entrepreneurs with a unique perspective as they are exposed to different cultures, consumer preferences, and market dynamics. They may observe a demand for a particular product that is not being fulfilled in the local market.

Recognizing this unmet need, entrepreneurs can leverage their knowledge and understanding of the product from their home country to introduce it to the foreign market, catering to the demand and filling the gap.

These entrepreneurial opportunities that arise while studying abroad often stem from the entrepreneur's ability to identify a specific product or service that has a potential customer base but is not currently available in the foreign market.

By capitalizing on this gap, entrepreneurs can create innovative solutions and tap into a new market, potentially leading to business success.

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(RR calculation) Determine to the nearest percent the IRR on the following projects a. An initial outlay of $11,000 resulting in a free cash flow of $3,000 at the end of year 1. 56,000 at the end of year 2. and $9,500 at the end of year 3 b. An initial outlay of $11.000 resulting in a free cash flow of 59.500 at the end of year 1. 56,000 at the end of year 2, and $3,000 at the end of year 3 c

Answers

The IRR for project A is 17%, the IRR for project B is 20%, and the IRR for project C is 19%, all rounded to the nearest percent.

To calculate the IRR (internal rate of return) for these projects, we need to use the formula:

NPV = ∑(Cash Flow / (1 + r)^t) - Initial Outlay

Where NPV is the net present value, Cash Flow is the cash flow for each year, r is the discount rate or IRR, t is the year of the cash flow, and Initial Outlay is the initial investment.

For project A, the NPV would be:

NPV = -11,000 + $3,000/(1+r) + 56,000/(1+r)^2 + 9,500/(1+r)^3

To solve for r, we can use a financial calculator or spreadsheet program. The IRR for project A is approximately 17%.

For project B, the NPV would be:

NPV = -11,000 + 59,500/(1+r) + 56,000/(1+r)^2 + 3,000/(1+r)^3

Again, we can use a financial calculator or spreadsheet program to solve for r. The IRR for project B is approximately 20%.

For project C, the NPV would be:

NPV = -11,000 + 56,000/(1+r) + 56,000/(1+r)^2 + 3,000/(1+r)^3

Once again, we can use a financial calculator or spreadsheet program to solve for r. The IRR for project C is approximately 19%.

In summary, the IRR for project A is 17%, the IRR for project B is 20%, and the IRR for project C is 19%, all rounded to the nearest percent.

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Several years ago, Jeff purchased stock for $5,125. Last month he sold the stock for
$7,411. What was his gross capital gain?

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If Several years ago, Jeff purchased stock for $5,125. Last month he sold the stock for $7,411. His gross capital gain is: $2,286.

Gross capital gain

In order to determine the gross capital gain since we were told that he  purchased stock for the amount of $5,125 in which last month he sold the stock for  the amount of $7,411 we have to deduct the current stock selling price form the stock purchase price by making use of  this formula to determine the  gross capital gain.

Gross capital gain = Current stock selling price - Stock purchase price

Where:

Current stock selling price = $7,411

Stock purchase price = $5,125

Let plug in the formula so as to find the gross capital gain

Gross capital gain = $7,411 - $5,125

Gross capital gain =$2,286

Therefore If Several years ago, Jeff purchased stock for $5,125. Last month he sold the stock for $7,411. His gross capital gain is: $2,286.

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This refers to dividing responsibility among specific units or departments.

Answers

I think this could be division of labour.

how much will you have in 8 years if you invest $1232 in 1 years from today and your account has a return of 2.39% per year for each of the next 14 years?(round the value to 100th decimal)

Answers

If you invest  $1232 one year from today, in 8 years (from now) there will be $1,453.49 in your account.

Let us assume that the account use compound interest and compounded annually.

Since the investment will start next year, the investment period is 7 years.

The formula for the future value of compound interest is:

FV = PV ( 1 + r)ⁿ

Where:

PV = present value = $1232

r = interest rate per period = 2.39% = 0.0239

n = time periods = 7 years.

Plug all parameters into the formula:

FV = 1232 (1 + 0.0239)⁷

FV = 1232 x 1.0239⁷ = $1,453.49

Hence, in 8 years you will have $1,453.49

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All bosses will react the same way to an employee being late. Please select the best answer from the choices provided T F.

Answers

False. The reaction of bosses to an employee being late can vary depending on factors such as workplace culture, policies, and individual management styles.

The reaction of bosses to an employee being late can vary significantly depending on various factors such as workplace culture, company policies, individual management styles, and the specific circumstances surrounding the lateness.

Certain bosses may prioritize punctuality and view lateness as a sign of irresponsibility or lack of commitment. They may enforce disciplinary measures or have policies in place that outline specific consequences for tardiness, such as warnings, docking pay, or even termination.

On the other hand, some bosses may take a more empathetic approach and consider extenuating circumstances that may have caused the lateness. They may be open to discussions, offer support, and work with the employee to find solutions or adjust schedules if necessary.

Ultimately, the reaction of a boss to an employee being late can vary greatly depending on their individual management style, company policies, and the overall work environment.

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Dash Plumbing is an established company with 12 employees and a small office in the suburbs of Atlanta. The company had an old copier that was breaking down often, to the dismay of the staff, and it had the resources to buy a new one. Which best describes this situation

Answers

Answer:

The people at dash plumbing are in the market for a new copier

Explanation:

Since in the question it is mentioned that Dash publishing is an established company that has 12 employees and has a small office in Atlanta. Also the old copier breaks down and the resources to purchase

So the given situation represent that the dash plumbing people come in the market for a new copier and the same is to be considered

Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).

Cain Company reports net cash provided by operating activities of $35,000. It also reports the following

Answers

It can be seen from the solutions given that Cain's net income is $24,000.

Here is the solution:

Net income = Net cash provided by operating activities - Adjustments

= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000

= $24,000

Therefore, Cain's net income is $24,000.

Here is a breakdown of the adjustments:

To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.

A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.

The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.

A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.

A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.

A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.

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The association stradegy is used to_________information

Answers

Answer:

The association strategy is used to help memorized information.

Explanation:

A benefit of using association is that it allows the learner to be creative and have fun. ... The association strategy is used to help memorized information.

.G Co Ltd- a famous US based firm requires 10 million pound (GBP) by way of loan to finance a new venture in UK. But the firm being unknown to British investors is unable to get financing from UK debt market nor any UK bank. Hence, the firm decides to raise fund from US debt market through dollar-denominated 3 years’ bond at annual coupon of 10% PA. It will then convert the dollar ($) into GBP at prevailing spot rate of GBP/ $ = $1.70.
Over the each of next 3 years it plans to use the revenue earned in GBP from UK market out of new business to make its annual debt payment. G Co engages in currency swap agreement with a counter-party in which it will convert GBP to USD at an exchange rate of $1.70 per GBP at the end of each of next 3 years.
Answer the following questions –
a. How many dollars should G Co Ltd borrow initially to support new UK venture? (5 Marks)
b. How many pound should G specify in the swap agreement that will swap over each of the next 3 years in exchange of USD so that it can make its annual coupon payment to the US creditors? (5 Marks)

Answers

a.  G Co Ltd should borrow $17 million initially to support the new UK venture.

b. G Co Ltd should specify an amount of pounds equal to $1 million in the swap agreement for each of the next 3 years to make its annual coupon payment to the US creditors.

a. To determine how many dollars G Co Ltd should borrow initially to support the new UK venture, we need to calculate the present value of the loan.

The loan amount required is 10 million pounds (GBP). To convert this amount into dollars, we use the prevailing spot rate of GBP/$ = $1.70.

Loan Amount in Dollars = 10 million GBP * $1.70/GBP

Calculating the loan amount in dollars:

Loan Amount in Dollars = 10 million * $1.70

= $17 million

Therefore, G Co Ltd should borrow $17 million initially to support the new UK venture.

b. To determine the amount of pounds G Co Ltd should specify in the swap agreement for each of the next 3 years, we need to consider the annual coupon payment and the exchange rate.

The annual coupon payment is 10% of the initial loan amount, which is $17 million. Therefore, the annual coupon payment is:

Annual Coupon Payment = 10% * $17 million

= $1.7 million

To make the coupon payment to the US creditors, G Co Ltd needs to swap dollars into pounds at an exchange rate of $1.70 per GBP.

Amount of Pounds in Swap Agreement = Annual Coupon Payment / GBP/$ Exchange Rate

Calculating the amount of pounds for each year:

For Year 1:

Amount of Pounds in Swap Agreement (Year 1) = $1.7 million / $1.70

For Year 2:

Amount of Pounds in Swap Agreement (Year 2) = $1.7 million / $1.70

For Year 3:

Amount of Pounds in Swap Agreement (Year 3) = $1.7 million / $1.70

Therefore, G Co Ltd should specify an amount of pounds equal to $1 million in the swap agreement for each of the next 3 years to make its annual coupon payment to the US creditors.

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A leader begins a project selection meeting with her team by first announcing the project ideas that she thinks are most promising. Which heuristic bias may be introduced by her approach?
a. The halo effect
b. Framing
c. Availability
d. The law of small numbers

Answers

The heuristic bias that may be introduced by the leader's approach is the availability heuristic.Option (c)

This heuristic refers to the tendency to rely on information that is readily available or easily recalled when making decisions, rather than considering a more comprehensive set of information.

In this case, the leader's announcement of the projects she believes are most promising could bias the team's decision-making process towards these ideas, as they are now more readily available and at the forefront of everyone's minds. The team may overlook other potentially promising ideas that were not mentioned by the leader or not given as much emphasis.

This bias could lead to a narrow range of options being considered and ultimately limit the team's creativity and innovation in the project selection process.

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Conduct online research on different types of cover letters. Observe the cover letters and list the strong points of each cover letter. Based on the observations of different cover letters, create a cover letter of your own, assuming that you are applying for a company of your choice.

Answers

Answer:

the investigation of encyclopedia in the photosynthesis of America

Explanation:

The water flies ontop the bridge challenge to them

which of the following types of loans issued in california may be protected from a deficiency judgment? unset starred question first mortgage issued in july 2014 to purchase a single family home loan issued in january 2012 to purchase a commercial property loan issued in january 2013 to purchase an investment property loan issued in january 2015 to purchase land

Answers

In California, the type of loan that may be protected from a deficiency judgment is the first mortgage issued to purchase a single-family home.

This means that if the borrower defaults on the loan and the property is foreclosed, the lender may not pursue the borrower for any remaining balance after the sale of the property. However, it is important to note that this protection only applies to first mortgage and not any subsequent loans taken out on the property. The other loans listed, including the loan for a commercial property, investment property, and land, are not typically protected from deficiency judgments. It is important to consult with a legal professional to fully understand your rights and obligations when it comes to loans and foreclosure in California.

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the company "Hives for Live" is both a ____ and a _______ organization at the same time

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The company "Hives for Live" is both a partnership of Turco and a Reese organization at the same time. By definition, a partnership business consists of two or more individuals who pool their resources to create a company and agree to split the risks, rewards, and losses.

Law firms, medical groups, real estate investment firms, and accountancy groups are typical instances of partnership company. The simplest form of joint ownership for two or more people is a partnership. Limited partnerships (LP) and limited time liability partnerships are the two most prevalent types of partnerships (LLP). The three various forms of partnership are as follows: Partnership in general. collaboration with a limit.

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Industries X and Y both have four-firm concentration ratios of 90 percent, but the Herfindahl index for X is 7,814, while that for Y is 8,206. These data suggest Multiple Choice greater market power in X than in Y. greater market power in Y than in X. O that X is more technologically progressive than Y. that price competition is stronger in Y than in X.

Answers

The given concentration ratios and Herfindahl index of Industries X and Y suggest greater market power in Y than in X.

The Herfindahl index is a market concentration metric that calculates the market concentration of a group of suppliers. It is the sum of the squares of the percentage market shares of all the firms that operate in a particular industry. It ranges from 0 to 10,000, with higher values indicating greater concentration.

A four-firm concentration ratio is a ratio that calculates the market share of the four largest firms in an industry. In other words, the percentage of total market share that is controlled by the four biggest firms is the four-firm concentration ratio (CR4).

The data provided for Industries X and Y suggests that both have a 90% four-firm concentration ratio. However, the Herfindahl index is 7,814 for Industry X and 8,206 for Industry Y.

A higher Herfindahl index indicates a greater concentration of market power among fewer companies. Therefore, the higher Herfindahl index of Industry Y suggests greater market power in Y than in X.

Therefore, the correct option is "greater market power in Y than in X."

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When you're finished using your Go ogle account, what should you do to help keep your information secure?

A. Reset your password.
B. Create a new username.
C. Send an e-mail.
D. Sign out.

Answers

Answer:

this is a very st upid question but i would say its D

Explanation:

A does make sense somehow but i dont think you would reset your password everytime you using go ogle

i dont know why B should help at all

C makes no sense at all

When you're finished using your Go-ogle account, you should always sign out to keep your information secure. Thus, option 'D' is the correct option.

How to keep your Go-ogle account safe?

Go-ogle uses the strictest security measures to protect your personal data. The Advanced Protection Program protects individuals with sensitive information and high visibility from deliberate online assaults. Chrome's Safe Browsing shields 4 billion devices from dangerous websites, while Advanced Protection does even more thorough checks before each download. It alerts you to potentially hazardous files and may even stop you from downloading them.

Installations of apps are only permitted from trusted shops, such as the app store run by the company that makes your device. You are frequently prompted to grant access to your Go=ogle Account data, such as your contacts, location, or Drive, when you join up for new apps or services. Go=ogle Accounts have built-in security features that verify more than 1 billion stored passwords daily for breaches.

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1- You have invested in the stock of Mia’s Cribs and Cradles, Inc. and earned a return of 7% over the three months you owned the stock. Your annualized or effective rate of return on the stock was________.

2- You have invested in the stock of Josiah’s Infantwear, Inc. and earned a return of 19% over the four years you owned the stock. Your annualized or effective rate of return on the stock was________.

Answers

1- Your annualized or effective rate of return on the stock was 28%. 2- Your annualized or effective rate of return on the stock was 4.75%.

1- The annualized or effective rate of return on a stock measures the annualized percentage return earned by an investor over a specific period. To calculate the annualized rate of return, we need to consider the time period and the return earned.

In the first scenario, you earned a return of 7% over a three-month period. To annualize this return, we need to consider how many three-month periods there are in a year. Since there are four three-month periods in a year, we can multiply the return earned by four to get the annualized rate.

Annualized rate of return = Return earned * Number of periods in a year
= 7% * 4

= 28%
Therefore, your annualized or effective rate of return on the stock of Mia’s Cribs and Cradles, Inc. is 28%.

2- In the second scenario, you earned a return of 19% over a four-year period. To annualize this return, we need to consider the number of one-year periods in the given time frame. Since there are four one-year periods in four years, we can divide the return earned by four to get the annualized rate.
Annualized rate of return = Return earned / Number of periods in a year
= 19% / 4
= 4.75%
Therefore, your annualized or effective rate of return on the stock of Josiah’s Infantwear, Inc. is 4.75%.

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Summarize what is a mutual fund!

Answers

Answer:

investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own

Explanation:

In the early 1890s, the average employee in the united states worked about how many hours per week?.

Answers

In the early 1890s, the average employee in the United States worked approximately 100 hours per week.

Workers are part of the workforce. While the labor force is everyone who is involved or trying to be involved in productive activities that produce goods and services. Meanwhile, workers or working residents are people who work in any field for a salary or pay.

Based on the type of activity, workers can be divided into two types, including:

Spiritual Worker (Non-physical) Spiritual or non-physical workers are workers who in their work activities use more thought processes, ideas, ideas, and so on. For example, managers, secretaries, directors, and consultants.Physical Worker (Physical) Physical or physical workers are workers who in carrying out their work activities use physical or physical energy. For example, construction workers and public transport drivers.

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The repair service that fixes your farming equipment doesn’t seem to fix your plow correctly. The technician says that if you are not happy, you can buy a new plow from him, but the cost is extremely high. Do you have other options available to you for higher-quality repairs or cheaper equipment? Explain your answer.

Answers

Answer:

Your best option would be for higher quality repairs and higher quality equipment, this would save you more money and time in the long run where you have the ability to do other things.

Explanation:

Mark as Brainliest please!

Ill give u a cookie

Answer:

No, because in command economies, there is no competition. So, there are no other repair services that would offer higher-quality repairs or cheaper equipment. Additionally, no incentive exists for the technician to provide high-quality service.

Explanation:

the actual answer

One disadvantage of a corporation is:

Answers

Answer:

The disadvantages of a corporation are as follows: Double taxation. Depending on the type of corporation, it may pay taxes on its income, after which shareholders pay taxes on any dividends received, so income can be taxed twice. Excessive tax filings.

a company that has positive cash flows from its would most likely be able to generate enough cash to continue as a going concern.

Answers

A company that has positive cash flows from its operating activities would most likely be able to generate enough cash to continue as a going concern.

What is the operating activities in Cash flow?

Under cash-flow statement, the operating activities refers to the activities of a company in producing and selling its product, generating revenues as well as general administrative and maintenance activities.

Typically, an operating activities section on statement of cash flows shows the inflows and outflows of cash resulting from a company's key operating activities. When a company have positive cash flows from its operating activities, then, this would most likely be able to generate enough cash to continue as a going concern.

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Which kind of map would be most helpful to use when studying watersheds?a road mapa political mapa topographic map

Answers

Answer:

Topographic map

Explanation:

Topographic maps show the arrangement of the physical features of an area of the Earth; Such as mountains, valleys, plains, and bodies of water ( above sea level).

How does the Better Business Bureau effect the economy?

Answers

Answer:

Varies

Explanation:

It helps people find businesses that are trustworthy.

inflation allows central banks to run more expansionary monetary policy because it allows them to achieve T/F

Answers

True. Inflation allows central banks to run more expansionary monetary policy because it allows them to achieve their policy goals more effectively.

Inflation refers to the general increase in prices of goods and services in an economy over time. When inflation occurs, the value of money decreases, and central banks can use this to their advantage in implementing expansionary monetary policy.

Expansionary monetary policy aims to stimulate economic growth and increase aggregate demand. It involves measures such as lowering interest rates, increasing the money supply, or implementing quantitative easing. These actions can encourage borrowing, investment, and consumer spending, which can boost economic activity.

Inflation allows central banks to run more expansionary monetary policy because it provides them with more room to maneuver. When inflation is present, central banks can lower interest rates further without reaching the lower bound (zero interest rate) or even implement negative interest rates. This provides additional stimulus to the economy.

Furthermore, inflation can also erode the real value of debt over time. By allowing some inflation to occur, central banks can effectively reduce the burden of debt on borrowers, making it easier for them to repay loans and potentially encourage more borrowing and investment.

Therefore, it is true that inflation allows central banks to run more expansionary monetary policy because it enables them to achieve their policy goals more effectively by providing greater flexibility in adjusting interest rates and influencing economic activity.

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A basic concept in economics is that al resources are?

Answers

Answer:

Limited

Explanation:

It is general believed that human wants are unlimited but the resources to satisfy them are limited.

Scarcity is a term in economics, which means that the resources available will not be enough to meet the unlimited human want hence resources must be allocated efficiently.

Some of the causes of scarcity are when demand is greater than what is being produced, when there are no enough suppliers to supply certain products. Etc

how can a reduction in taxation be used to influence aggregate demand​

Answers

Answer:

shifting the aggregate demand curve to the right.

Explanation:

what is a business plan​

Answers

Answer:

A business plan is a written document that describes in detail how a business usually a startup may defines its objectives and how it is to go about achieving its goals.

Answer:

According to Wikipedia, A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.

Someone has shared some information with you without proof, therefore you dismiss it as a __________. Later on that day, you hear others repeating the information, you now realize that everyone involved in sharing the unofficial information, has become a part of the _________________.

Answers

Answer: Rumors

Explanation: i had this topic last year

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