Describe the impact of the coupon rate and yield to maturity (YTM) on bond par value and market value. If you were the CFO of a company and the Federal Reserve Bank decided to increase the interest rate by 1% beginning next quarter, what steps would you take to raise capital from the financial markets?
Answers
Answer:
First we must analyze how an increase in market rates affect the price of bonds:
Suppose that the market rate is 8% and we offer 8% bonds, annual payment, 15 years to maturity. We are using the market rate since we do not like to calculate amortizations of premium or discount prices.
I.e. the market price = par value of the bond
If the FED suddenly decides to increase interest rates by 1% and since we are issuing our bonds in 1 month, we will have to sell them at a different market price:
PV of face value = $1,000 / 1.09¹⁵ = $274.54
PV of coupon payments = $80 x 8.0607 (PV annuity factor, 9%, 15 periods) = $644.86
The market price of our bond will decrease to $919.40, so our borrowing costs have increased. The issue here is that market rates are not associated to any specific company, maybe Apple is large enough to make a difference, but that is an exception, not the rule.
Whatever you do as a CFO will not allow your company to raise money at a lower interest rate after the FED acts. The only thing that you can do right now is hurry up the bond issuance. You must issue the bonds immediately (like yesterday) because the market rate will increase because it expects the FED's raise. The sooner you issue the bonds, the lower the negative impact.
Market's act very quickly, and 1 minute after the FED made its announcements, the market rate had already increased (not the whole 1% though). It doesn't matter if the raise will take place in one month, bonds maturity is measured in years. But the adjustment made to the market rate is not complete right now, probably the market rate increased to 8.5% or so, but as more time passes, the closer the rate will get to 9%.
Related Questions
According to the video, what strategy do many banks use with their employees?
They transfer workers to new locations
They hire from other banks
They promote from within
They maintain the current staff
Answers
Answer: C
Explanation:
I just took the test
Answer:
The answer is c
Explanation:
which of the following sentence ls use active voice
Answers
Answer:
Where is the picture
Explanation:
What network affects individual outcomes?
Answers
In business and industry, a network allows to align people to paintings with each other and to attain the goal of the employer, this means that goals can be inside the goal, attained, and improved. without administrative center conversation, nothing may be executed. The network is a key element of human behavior.
What is the cause of organizational networks?
The principal functions of the organizational verbal exchange are to replace personnel on new regulations, disaster communique, make certain safety at some stage in the corporation, control exchange management, virtual transformation, mergers, and acquisitions, in addition, to supply and get hold of comments from employees.
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You have been hired as a strategic planning consultant to Acre Pizza, a regional chain of outdoor dining pizza restaurants. Acre Pizza is deciding whether or not to outsource home deliveries to third parties such as GrubHub, DoorDash, or UberEats. What would be the biggest drawback of outsourcing this value chain activity
Answers
Given that the company is deciding to outsource or not to outsource, the greatest setback that they would experience would be:
Acre Pizza loses flexibility in accommodating its delivery partners with just-in-time orders.What is outsourcing?This is a business practice that a lot of organizations engage in. It is the practice of hiring people or companies outside their organizations to handle certain operations.
Outsourcing this job is going to prevent the business from having full control over the deliveries.
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Economic demand is?
A. the amount of a good or service that consumers are willing and able to buy at one price.
B. the amount of a good or service that consumers are willing and able to buy at various prices.
C.the amount of a good or service that producers are willing and able to produce at various prices.
D. the amount of a good or service that consumers are willing but not able to buy at various prices.
Which of the following is correct?
Answers
The correct answer is B. Economic demand is the amount of a good or service that consumers are willing and able to buy at various prices.
It reflects the relationship between the price of a product and the quantity that consumers are willing to purchase at that price. Demand is influenced by factors such as price, consumer preferences, income levels, and availability of substitutes.
As the price of a product decreases, the quantity demanded generally increases, and vice versa, following the law of demand. The demand curve represents this relationship, showing the quantity of a good or service that consumers are willing and able to buy at different price points.
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Sales revenue
may be recorded before cash is collected.
will always equal cash collections in a month.
only results from credit sales.
is only recorded after cash is collected.
Answers
Answer:
may be recorded before cash is collected.
Explanation:
Sales revenue "may be recorded before cash is collected."
This is according to Accrual accounting, which unlike the cash model that requires payments to be made before sales revenue is recorded.
In the Accrual accounting model, sales revenue recording is not based on cash collection before it is recorded. Here, the revenue is recorded in as much the transferred goods are made and collection of payment is determined or expected.
which of the following
Answers
Answer:
did u mean to add an image? lol
Explanation:
explain the accrual basis of accounting and reasons for adusting entries
Answers
In which type of bailment does the bailee have the highest
standard of care?
A. Bailment for benefit of consideration
B. Bailments for the benefit of bailor and bailee
O C. Bailment for the sole benefit of the bailor
O D. Bailments for the sole benefit of the bailee
Answers
Answer:
D. Bailments for the sole benefit of the bailee.
Explanation:
i got it right:)
Your company sells over-the-counter sleep pills and has created the slogan "sleep better than a baby, sleep like a teenager." what element of strategy does this represent?
Answers
Answer: Targeting
Explanation:
Strategy refers to the integrated set of choices that managers consider when making decisions. With regards to the question above, the element of strategy that's used is the targeting strategy.
The targeting strategy is when the market is being segmented and the segments of the market tahts appropriate is then chosen aftee which product are then offered.
The biggest U.S. stock exchange is located in which city?
O A. New York
B. Los Angeles
C. Washington, D.C.
D. Chicago
Answers
explanation: New York Stock Exchange ,one of the world's largest marketplaces for securities and other exchange-traded investments. The exchange evolved from a meeting of 24 stockbrokers under a buttonwood tree in 1792 on what is now Wall Street in New York City.
Differences between needs and wants
Answers
Answer:
Here are the differences between needs and wants.
Explanation:
Needs are things that people absolutely have to have in order to live, ex. food, water, shelter, life saving medicine, etc.
Wants are things that people often desire to have, not because they can't live without it, but because they wish to have it to make their life more comfortable, easier, or nicer, ex. expensive games, phones, cars, etc.
There is a way to tell between needs and wants. For example, when someone wants to buy something, they can ask themselves:
"Must I have this in order to live?"
or
"Am I going to get this because its just going to make my life better, or am I going to get this because I have to have this in order to survive?"
Hope this helps! Brainliest would be much appreciated! Have a great day! :)
100 pts
The table identifies how many thousands of units of corn and diamonds the United States and Congo can produce in one week. Use this data to answer the question that follows.
Corn
Diamonds
United States
60
10
Congo
20
5
Which statement is true based on the data table?
The United States should specialize in diamonds and trade for corn.
The United States should specialize in corn and trade for diamonds.
Congo should specialize in corn and trade for diamonds.
Congo should specialize in both corn and in diamonds.
Answers
Answer:
In view of the units of corn and precious stones delivered by the US, the open-door cost of creating corn is B. 10⁄60.
What is the open-door cost of delivering corn?
The open-door cost of delivering corn to the US would be the number of precious stones that are surrendered to make one unit of corn.
This can be found as:
= Units of jewels/Units of corn
= 10/60 jewels
All in all, choice B is right.
Answer:
B) The United States should specialize in corn and trade for diamonds.
Explanation:
I got it right on the test
Think of a possible problem a firefighter might find while at an incident. Explain the problem and describe how a report would move through the chain of command in a fire department, beginning with a firefighter who initially discovers a problem. Your response should be at least 150 words.
Answers
Answer:
A potential problem a firefighter might find while at an incident is a hazardous material spill. The firefighter who initially discovers the spill would need to alert the Incident Commander (IC) of the situation. The IC would then assess the situation and decide the best course of action to take. Depending on the severity of the spill, the IC may call in additional resources or evacuate the area.
Once the IC has determined the course of action, they would need to report the incident to the Fire Chief. The Fire Chief would then alert the proper authorities, such as the Environmental Protection Agency, to assess the risk and take further action. The Fire Chief would also document the incident and any actions taken in the incident report.
The report would then be sent up the chain of command, from the Fire Chief to the Fire Department's Board of Directors. The Board of Directors would review the report and determine if any changes need to be made to the Fire Department's safety protocols.
Finally, the Board of Directors would issue a final report to the Fire Department and make any necessary changes to the safety protocols. This would ensure that similar incidents are prevented in the future.
Explanation:
When considering the education and training a career requires you must be aware of _____.
a. the amount of time it will take
b. the amount of money it will take
c. the amount of effort it will take
d. all of the above
Please select the best answer from the choices provided A B C D
Answers
Answer:
The answer is simply D because all of these options happen during this period.
THE FOLLOWING INFO IS AVAILABLE FOR BERLIN CORPORATION FOR THE YEAR ENDING 12/31/20. OTHER REVENUE/GAINS= 12700, OTHER EXPENSES/LOSSES=13300, COST OF GOODS SOLD= 156000SALES 592000, OPERATING EXPENSES= 186000, SALES RETURNS= 40000. PREPARE A STEP-BY-STEP INCOME STATEMENT. TAX RATE IS 30 PERCENT
Answers
Based on the revenue, the expenses, the sales, and other entries, the step - by - step income statement for Berlin Corporation is:
Berlin Corporation.
Income Statement
Sales Revenue $592,000
Less: Sales Return $40, 000
Net Sales $552, 000
Less : Cost of Goods sold ($156, 000)
Gross Profit $396, 000
Less Operating expenses: (186, 000)
Income from operations $210, 000
Other Revenue /Gains 12, 700
Other Expenses /Losses (13, 300) ( 600 )
Income before income taxes $209 ,400
Less: Income tax expense ($62, 820)
Net Income / (Loss) $146,580
How to make an income statement?When making an income statement, the goal is to find out how much net income or loss that a company makes.
First, write the revenue and then remove any sales returns or allowances. Then remove the cost of goods sold to find the gross profit. After this, the operating expenses are removed to find the income before taxes. After the taxes are removed, the remaining amount would be the Net income or loss.
The taxes here are:
= 209, 400 x 30%
= $62, 820
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when was the single market created
Answers
The single market of the European Union is the territory shared by the 27 member states of the EU where trade in goods, services, capital, and people is unrestricted.
The European Union's 27 member states work together primarily through the Single Market. But it took a long time to get things going.
The 1957 Treaty establishing the European Economic Community was the catalyst for everything (EEC). The initial six founding members (Belgium, France, Germany, Italy, Luxembourg, and the Netherlands) were given a deadline by this Treaty to eliminate all internal customs barriers and set up an uniform customs tariff that would be applied to goods coming from non-EEC nations. The 1st of July 1968 saw the completion of this goal. Due to the removal of these obstacles and the opening of national marketplaces, more businesses.
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What's the difference between a Monopoly and Oligopoly market?
Answers
Explanation:
The main difference between monopoly and oligopoly is in the number of firms under consideration.
In Monopoly, the market witness a situation in which one company alone dominates; in other words, this company produces goods or services without having any close competitors.
While in Oligopoly, not just one but a small group of companies act as the dominant players in the market even though they may produce slightly different products; they thus influence the market a lot reducing the chances of new competitors.
Compare and contrast the three categories of project resource.
Answers
Answer:
Brainiiest Please!
Work resources − People and equipment to complete the tasks.
Cost resources − Financial cost associated with a task. Travel expenses, food expenses, etc.
Material resources − Consumables used as project proceeds. For example, paint being used while painting a wall.
Explanation:
People and equipment to complete the tasks.
Financial cost associated with a task. Travel expenses, food expenses, etc.
Consumables used as project proceeds. For example, paint being used while painting a wall.
The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.
Answers
The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.
1. The US Senate passed the 2022 Defense Authorization Act.
2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.
3. The total amount allocated for the Defense Authorization Act is $768 billion.
4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.
5. The Act represents a 5% increase in the US defense budget when compared to the previous year.
6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.
7. The Act was passed overwhelmingly, indicating strong support from the Senate.
8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.
9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.
10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.
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Dave gets a job at a grocery store, which pays him an hourly wage in
exchange for his labor. Dave is participating in *
O A. entrepreneurship
O B. human capital.
O C. the product market.
O D. the factor market.
Answers
Answer:
D. the factor market
Explanation:
Labor (along with land, capital, and entrepreneurship) is one of the "four factors of production."
Also, Dave isn't starting a business (so he's not an entrepreneur), nor is he in the product market (since he's not making products; just shelving, bagging, and/or scanning them at checkout). I suppose he might be participating in human capital in that he's building up "human capital" (i.e., building up his skills and experience), but I feel like "factor market" is better.
Jim is looking to purchase Vinney's property. The two parties agree on the terms of the deal and are ready to sign the purchase agreement. When will Jim and Vinney have an executed contract?
Answers
Jim is looking to purchase Vinney's property. The two parties agree on the terms of the deal and are ready to sign the purchase agreement. Jim and Vinney have an executed contract when they both are signed.
What is contract execution?A systematic event known as contract execution occurs when all necessary parties sign the agreement, making it a binding legal document.
Further the contract law provide the two broad categories of the contract which is considered to have been executed a) whenever all parties have fulfilled their responsibilities in full and b) A contract that has been signed by all parties required to make it legally enforceable is also referred to as being "executed."
Therefore Jim and Vinney when sign the agreement can make the purchase agreement into a real estate executed contract.
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Convert 60 3/10% to a decimal.
Answers
To convert, simply divide by 100
60.30/100 = .603
Jeanine is willing to pay up to $16 per month for a Netflix subscription and accordingly buys Netflix's basic plan in 2020, when the price is $14 per month. When the price rises to $15.50 per month in January of 2022, Jeanine's monthly consumer surplus from Netflix falls by:
a.$1.50.
b.$1.00.
c.$0.50.
d.$14.00.
Answers
Jeanine's monthly consumer surplus from Netflix falls by Option c.$0.50.
Consumer surplus is the difference between what a consumer is willing to pay for a product or service and what they actually pay.
The consumer surplus is a measure of the economic surplus that occurs when the price a consumer pays for a product is less than the maximum price they are willing to pay for it. The concept is used in economics to measure the efficiency of markets and to analyze the benefits of public policies that affect consumer welfare.
Jeanine is willing to pay up to $16 per month for a Netflix subscription but buys the basic plan for $14 per month. Therefore, her consumer surplus is $2 per month. When the price of Netflix's basic plan rises to $15.50 per month, Jeanine's consumer surplus from Netflix falls by $0.50 per month.
In other words, Jeanine's consumer surplus decreases by $0.50 per month when the price of Netflix's basic plan increases from $14 to $15.50 per month. The decrease in consumer surplus is a result of the increase in the price of the product and the fact that Jeanine is now paying more than she was willing to pay in the past.
The concept of consumer surplus is important because it helps economists understand the value that consumers place on products and services and how changes in prices affect their welfare. In the case of Jeanine and Netflix, the increase in price results in a decrease in consumer surplus, which means that Jeanine is worse off as a result of the price increase. Therefore, the correct option is C.
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Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick, a leading proponent of Libertarianism, and why? A negative income tax because it would maximize the minimum income of members of society. An Earned Income Tax Credit (EITC) because a policy that rewards the working poor would be the most just. An in-kind transfer program because it would maximize the total utility of all members of society. None of the programs would be favored because each of them forcibly redistributes income that was fairly, if not equally, earned.
Answers
Since each policy forcibly redistributes revenue that was fairly, if not equitably, obtained, none of them would be favored.
Robert Nozick: Who Was He?American philosopher Robert Nozick was one of them. Both the American Philosophical Association and the Joseph Pellegrino University Professorship at Harvard University were held by him. He is best known for his books Philosophical Explanations (1981), which contained his counterfactual theory of knowledge, and Anarchy, State, and Utopia (1974), a libertarian response to John Rawls' A Theory of Justice (1971). In Anarchy, State, and Utopia, Nozick presented his own theory of utopia as one in which people can freely choose the rules of the society they enter into. His other research focused on metaphysics, epistemology, decision theory, philosophy of mind, and ethics. Invariances (2001), his penultimate publication before passing away, proposed his theory of evolutionary cosmology, according to which invariances—and subsequently objectivity itself—emerged through evolution across potential universes.
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Business forms that have unlimited personal liability include
Answers
Answer:
sole proprietorship and partnership
Explanation:
They both have unlimited personal liability
Kay and several co-workers are part of the marketing team for a company that sells
sports drinks. Each day, they work on projects related to boosting the sales of these
beverages. Based on this information, Kay and her co-workers are part of
advertising
sales promotion
Internet marketing
O All of the above.
Answers
Answer: advertising
Explanation: They are working on a project to boost their sales which is advertising.
What happens when demand decreases while supply increases
Answers
Explanation: When demand decreases while supply increases, it creates a situation of surplus, also known as oversupply. This is because there is now more supply available in the market than there is demand for it, leading to a surplus of goods or services.
As a result, businesses may have to lower their prices to incentivize consumers to purchase their products or services. This can lead to a decrease in revenue for the businesses and potentially even lower profits. In some cases, businesses may also need to reduce their supply in response to the decrease in demand.
If the surplus persists over a longer period, businesses may also need to cut costs, such as reducing staff or production capacity, in order to remain profitable. This can have broader economic implications, such as rising unemployment rates and a decrease in overall economic activity.
Overall, a decrease in demand while supply increases can have negative consequences for businesses and the economy as a whole.
Answer: When demand increases and supply increases it leads to reduction in the equilibrium price.
Explanation:
The market price will fall as a result of a decline in demand and an increase in supply because, for any quantity, consumers now place a lower value on the item and producers are ready to accept a lower price.
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how might the use of a stakeholder management tool like the power interest grid or the stakeholder assessment matrix differ by methodology chosen?
Answers
Depending on the chosen technique, the process for using a stakeholder management tool, such as the Power Interest Grid or Stakeholder Assessment Matrix, can vary.
According to their power (influence) and interest (degree of involvement) in a project or organization, stakeholders are evaluated using the Power Interest Grid.
On a matrix with four quadrants, stakeholders are represented as high power, high interest, high power, low interest, low power, low interest, and low power, low interest.
A project's or organization's stakeholders are rated according to their level of influence and impact by the Stakeholder Assessment Matrix.
It is crucial to select a methodology that fits the particular requirements of the project or organization, taking into account the level of analysis that will be needed, the data that is at hand, and the intended results.
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Based on what you have heard and read. do you think that the economy under the current administration is a bull or a bear? explain your answer?
Answers
Note that the US economy under the current administration is a bull market.
How is this so?The stock market is at an all-time high,and unemployment is at a record low. However,inflation is also high, which could lead to a bear market in the future.
The US economy has been growing steadily since Biden took office. The stock market has reached record highs,and unemployment has fallen to a record low.
This is due in part to Biden's policies,such as the American Rescue Plan and the Infrastructure Investment and Jobs Act
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