Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9. 5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 9. 5% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?.
Answers
The maximum price that an individual should be willing to pay for the bond that has a 20-year non-callable bond, $1,000 face value, semiannual interest payment, and 9.5% annual coupon rate and nominal yield to maturity is $1,000.
Here's the explanation:A bond is an IOU, or a loan. The issuer is obligated to pay the bondholders the loan amount plus a fixed interest rate for a set length of time (until maturity). An investor can compute the current value of a bond using the present value formula. The price that you will pay for the bond is the present value of the bond, which is computed using the formula as follows:P = C * [1 - 1/(1 + r/n)^nt] / [r/n] + F / (1 + r/n)^nt Where: P = Price of the bond, C = Coupon payment, F = Face value, n = Number of coupon payments per year, t = Number of years until maturity, r = Yield to maturity In the question given, P is unknown. C = $1,000*9.5% = $95, F = $1,000, n = 2, t = 20 years, r = 9.5%.So, the maximum price that an individual should be willing to pay for the bond is computed as follows:P = $95 * [1 - 1/(1 + 9.5%/2)^2*20] / [9.5%/2] + $1,000 / (1 + 9.5%/2)^2*20= $1,000
Therefore, the maximum price that an individual should be willing to pay for the bond is $1,000.
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Related Questions
which responsibility centers generate both revenues and costs?
Answers
Answer:
A profit center is a responsibility center having both revenues and expenses.
Explanation:
I tired
In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total debt of $524 billion. Three years later, in early 2012, GE had a book value of equity of $116 billion, 10.6 billion shares outstanding with a market price of $17 per share, cash of $84 billion, and total debt of $410 billion. Over this period, what was the change in GE's a. Market capitalization? b. Market-to-book ratio? c. Enterprise value?
Answers
Answer and Explanation:
1. The computation of Market capitalization is shown below:-
Market Capitalization in 2009 = Market Price × Outstanding Shares
= 10.5 × $105
= $1,102.5 billion
Market Capitalization in 2012 = Market Price × Outstanding Shares
= $17 × $10.6
= $180.2 billion
Changes in Market Capitalization = Market Price × Outstanding Shares
= $1,102.5 billion - $180.2 billion
= $922.3
b. The computation of Market-to-book ratio is shown below:-
Market to Book Ratio in 2009 = Market Value of Firm ÷ Book Value of Firm
= $1,102.5 billion ÷ $105 billion
= 10.5
Market to Book Ratio in 2012 = Market Value of Firm ÷ Book Value of Firm
= $180.2 billion ÷ $116 billion
= 1.55
Changes in Market to Book Ratio = Market to Book Ratio in 2009 - Market to Book Ratio in 2012
= 10.5 - 1.55
= 8.95
c. The computation of enterprise value is shown below:-
Book Debt to Equity Ratio in 2009 = Debt ÷ Book Value of Equity
= $524 ÷ $105
= 4.99
Book Debt to Equity Ratio in 2012 = Debt ÷ Book Value of Equity
= $410 ÷ $116
= 3.53
Changes in Book Debt to Equity Ratio = Book Debt to Equity Ratio in 2012 - Book Debt to Equity Ratio in 2009
= 3.53 - 4.99
= -1.46
which statements best describe manufacturing in north carolina? check all that apply. outsourcing has resulted in a loss of jobs in the state. foreign competition has led to declining sales of products made in north carolina. the furniture industry is no longer important to north carolina. a number of textile mills were forced to shut down across the state. many furniture factories have closed in north carolina in recent years. the textile industry is in decline, while the apparel industry is on the rise.
Answers
North Carolina is a state located in the southeastern region of the United States, and it has long been known for its manufacturing industries, especially textiles and furniture. However, manufacturing in North Carolina has undergone significant changes in recent years, with some industries declining while others rise.
Some statements that best describe manufacturing in North Carolina are as follows:Outsourcing has resulted in a loss of jobs in the state:
This is true, as many companies in North Carolina have outsourced jobs to countries where labor is cheaper, leading to job losses in the state. Foreign competition has led to declining sales of products made in North Carolina:
This is also true, as North Carolina companies face stiff competition from foreign companies, which can produce goods at lower prices due to lower labor costs.Many furniture factories have closed in North Carolina in recent years: This statement is also accurate.
The furniture industry was once one of the most important in the state, but many factories have closed due to outsourcing and foreign competition. A number of textile mills were forced to shut down across the state: This is also correct.
The textile industry has been in decline in North Carolina for many years due to outsourcing and foreign competition.The textile industry is in decline, while the apparel industry is on the rise: This statement is also true. While the textile industry has been declining, the apparel industry has been growing due to North Carolina's skilled workforce and favorable business climate.
In conclusion, the manufacturing industry in North Carolina has undergone significant changes in recent years. While some industries have declined due to outsourcing and foreign competition, others have risen due to North Carolina's skilled workforce and favorable business climate.
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In 2014, apple purchased what company, which is best known for headphones?.
Answers
Answer:
Beats electronics
An example of a statement from the Personal Orientation Inventory that would be endorsed by a self-actualizing person is:
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The Personal Orientation Inventory (POI) is a psychometric tool developed by Shostrom (1964) to measure individual differences in personality and values.
One of the scales of the POI is the Self-Actualizing Scale, which assesses the degree to which a person is motivated by growth, autonomy, authenticity, and creativity.
According to Maslow's theory of self-actualization, people who reach the highest level of human development are those who are able to transcend their ego, embrace their unique potentials, and contribute to the well-being of others.
An example of a statement from the POI that would be endorsed by a self-actualizing person is:
"I prefer to work on projects that challenge my abilities and expand my knowledge, rather than those that are routine or predictable. I enjoy exploring new ideas and perspectives, even if they are unconventional or unpopular.
I value authenticity and genuineness in myself and others, and I try to express my feelings and beliefs honestly and respectfully. I believe that life is a journey of self-discovery and growth, and that each person has a unique purpose and potential that can be fulfilled through self-realization and service to others."
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A company has 12,247 customers they extend credit to, they will have 12,247 __________________ accounts.
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The company would have 12,247 subsidiary accounts.
What is a credit?A credit is a loan facility granted by a bank or an institution to its customers. This is to enable the customers access funds with a view to paying back at a future date.
Companies or institutions grant credit facilities to encourage their customers plan for their business and then pay back later.
Hence, the company would have 12,247 subsidiary accounts since they extend credits to 12,247 customers.
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Ricardo uses a stenotype machine for most of his typing. what is most likely his job?
Answers
A court reporter uses a stenograph machine, often known as a steno machine, to record a proceeding verbatim in writing. While court reporters may use recorded or live proceedings, accuracy and quickness are always crucial.so, Ricardo might be a court reporter.
A unique chorded keyboard or typewriter used by stenographers for shorthand is known as a steno machine, stenotype machine, shorthand machine, stenograph, or steno writer. A trained court reporter or closed captioner must write at speeds of about 225 words per minute (wpm) in the areas of literary, jury charge, and testimony, respectively, to pass the United States Registered Professional Reporter test. The word speed of certain stenographers can reach 300. The official record for American English is listed at 375 wpm on the website of the California(stenography) OfficialCourt Reporters Association. Demonstration Grandjean, Marc (1928)Compared to a standard alphanumeric keyboard, the stenotype keyboard has much fewer keys.
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What can be a detailed differentiation and positioning strategy forthe shoes brand bata?
Answers
Bata can differentiate itself from other shoe brands by emphasizing its affordable and durable products, as well as its heritage and global presence.
Differentiation strategy is a marketing approach used by businesses to distinguish their products or services from those of their competitors. It involves creating a unique and valuable product or service that meets the needs and wants of a specific target market, which in turn can help the business command a premium price and increase customer loyalty.
To position itself as a reliable and trustworthy brand, Bata can focus on its long history of providing quality shoes to customers all over the world. Additionally, Bata can use its extensive retail network to ensure that its products are widely available and accessible to customers. By offering a range of styles and sizes for men, women, and children, Bata can cater to a wide demographic and appeal to a broad range of customers. In terms of positioning, Bata can position itself as a practical and reliable option for those seeking quality shoes at an affordable price, while also highlighting its commitment to social responsibility and sustainability.
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If any body wants to be doctor ; what else does he need to do?
Answers
Answer:
go to med school
Explanation:
.........
why does spaghetti taste good?
Answers
Answer:
cuz why not,its bery taesty
The goal of federal reserve monetary policy is to affect the level of competition in the u.s.
a. True
b. False
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The Fed normally implements monetary policy by setting a target for the federal funds rate. It achieves its goals through open market operations, financial transactions traditionally involving US Treasury bonds.
What is the main objective of monetary policy in the US economic?What is the goal of US monetary policy? Monetary policy has two basic objectives: Promote 'maximum' sustainable production and employment and promote 'stable' prices. These goals are mandated by amendments to the Federal Reserve Act of 1977.
How does monetary policy affect economy?Monetary policy primarily affects the economy, promoting or constraining it in the form of new capital. Monetary policy is implemented by the Fed and involves changes in the money supply interest rate. An expansionary policy involves increasing the money supply while lowering interest rates.
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One of the traits of perfectly competitive firms is that they are usually able to relocate to other areas. True False
What types of efficiency are exhibited in oligopoly? a) Allocative Efficiency b) Price Efficiency C) Productive Efficiency D) Neither Productive nor Allocative Efficiency
Firms in perfect competition do not differentiate the products that they sell, but firms in monopolistic competition do. True False
Monopolies achieve allocative efficiency because ______ A) Barriers to entry reduce competition B)Economies of scale lower cost per-unit of production C)They produce where marginal revenue is equal to marginal cost D)Monopolies do not achieve allocative efficiency
In order to maximize profits, a firm in oligopoly will only produce another unit of a product if the marginal revenue is greater than the marginal price. True False
Answers
1)False.
2)C) Productive Efficiency.
3)True.
4)Monopolies achieve allocative efficiency because C) They produce where
5)marginal revenue is equal to marginal cost.
True.
A monopoly refers to a market structure in which a single firm dominates the entire market, often due to barriers to entry such as patents, control of critical resources, or high startup costs. This gives the firm significant pricing power and the ability to restrict output to maximize profits, resulting in reduced consumer surplus and potential market inefficiencies. Monopolies are generally seen as harmful to the economy and consumer welfare, as they often charge higher prices and restrict output compared to competitive markets. To regulate monopolies, governments may use antitrust laws to promote competition, impose price controls, or even break up monopolies into smaller firms to increase market competition
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Which examples demonstrate common qualifications for Security and Protective Services careers? Check all that apply.
Brooke negotiates with the prison inmates she supervises.
Ami is comfortable working alone and making decisions in her work as a Private Detective.
Reed thinks of creative solutions for defending a client in court.
Vincenzo attends college for many years and earns a juris doctor degree.
Shameka watches for unusual activities and signs of danger as she guards a bank building.
Teddy is a Lifeguard who uses his strength to pull a person out of the water.
Answers
Answer:
2,5,6
Explanation:
Ami,shameka,teddy
Answer:
2,5,6
Explanation:
A river barge company can offer cheaper, although slower, per-pound transportation of products to companies when compared with transportation by air, truck, or rail. The river barge company should first target customers whose companies use:
Answers
Answer:
the cost leadership strategy.
Explanation:
A river barge company can offer cheaper, although slower, per-pound transportation of products to companies when compared with transportation by air, truck, or rail. The river barge company should first target customers whose companies use the cost leadership strategy.
A cost leadership strategy is a business strategy which is aimed at using the lowest cost of production and operation in a business.
Hence, river barge company cheaper, although slower, per-pound transportation as against the use of air, truck, or rail which would be more expensive.
First, we need to figure out how much you want to borrow. You said you wanted to spend $5,000, and you will put $500 down. Based on that, we can estimate your taxes to be $340. Put those numbers into the calculator and press calculate to see how much money you will need for your loan.
Answers
"$4840" will be the total amount for the loan.
To "borrow" a thing means to use it with the purpose of giving it back. "Loan" is a word that can refer to either the act of giving anything to anyone or a number of funds it must be repaid with interest. That basically implies you can't say you're "borrowing" anything from anyone.
From the information that is provided:
Money that is spent = $5000
Down payment made = $500
The amount of taxes = $340
The total amount for the loan that is taken is
= 5000 - 500 +340
= $4840
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what would be the effect on the income statement if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? enter all amounts as positive numbers.
Answers
If the adjustments for equipment depreciation and unearned fees were omitted at the end of the year asset will be seen as overstated.
Assets on the income statement would be exaggerated if depreciation adjustments were not documented. Moreover, expenditures would be underestimated on the financial statements, resulting in an overestimation of net earnings. If net revenue is overstated, so are retained earnings on the balance sheet. Depreciation is apportioned so that a good portion of the accumulated depreciation is charged for each fiscal period during the asset's anticipated useful life.
The main purpose of charging depreciation is to allow the company to purchase the asset later, when the life of existing machine will get over, basically by charging depreciation, the company set aside a sum of money to purchase the asset.
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Which of these careers include supervising others?
welder
welder
project manager
project manager
foreman
foreman
forklift operator
Answers
The careers that needed supervision of others are welder and foreman. Thus option (a) and (b) are correct.
Who is a welder?A welder is a skilled tradesperson who specializes in joining pieces of metal or thermoplastics together using various welding techniques.
Welders must have a good understanding of welding techniques and materials, as well as safety practices and regulations. They use a variety of tools and equipment such as welding machines, cutting tools.
The welder and foreman are the professions that need supervision of others. Therefore, option (a) and (b) are correct.
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Is the demand curve shallow or steep? What does this mean about the elasticity of the demand
for memberships? (5 points)
Answers
Answer:
The demand curve is shallow, which means the elasticity of the demand for memberships is inelastic.
Explanation:
Among goods with more elastic demand, and for those with lower demand, the demand curve becomes shallower (closer to horizontal) and steefer (closer to vertical).
Hopefully this helps!
Why don’t exchange rates always adjust to correct current account deficits? In some cases, the home currency will remain strong even though a current account deficit exists, since other factors (such as international capital flows) can offset the forces placed on the currency by the current account.
Answers
Exchange rates don't always adjust to correct current account deficits because of other factors that could counterbalance the forces that lead to an exchange rate adjustment. In some situations, even if a current account deficit exists, the home currency may remain strong due to other factors, such as international capital flows.
Capital flows are the transfer of money between countries due to investment or lending activities. A nation with a current account deficit could still have a strong currency if it is receiving a significant amount of capital inflows, which are funds flowing into the country's economy from foreign investors. The inflows could be in the form of direct investments, such as foreign investors purchasing property or setting up businesses, or through portfolio investments, such as purchasing stocks or bonds issued by local firms.
Another factor that could counterbalance the forces leading to an exchange rate adjustment is central bank interventions. Central banks could buy or sell their own currency in the foreign exchange market to either strengthen or weaken the currency's value. For instance, a central bank could purchase its currency using foreign reserves, which would lead to an increase in demand for the currency and, consequently, a strengthening of its value. On the other hand, the central bank could sell its currency to increase the supply, leading to a weakening of the currency's value.
In conclusion, there are several factors that could prevent exchange rates from always adjusting to correct current account deficits. Capital flows, central bank interventions, and market expectations could all counterbalance the forces that lead to an exchange rate adjustment.
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define the study of economics
analyze ways that economics influences our daily lives
identify three basic economic questions: What will be produced? How will it be produced? For whom will it be produced?
Answers
The Study of economics can be defined as the study of People. Economics tries to explain what driving factor behind human behaviour, decisions and reactions when faced with difficulties or successes.
The effects of economics on our daily lives can be analyzed in the following ways
Opportunity costHow to maximize utilityThe effects of externalitiesImportance of savingEffects of Inflation.What are the Basic Economic Questions? What should we produce How should we produce it For whom should we produce itLearn more about economics at https://brainly.com/question/17996535
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In the acronym SMART, what does the “M” stand for?
Material
Mental
Maintainable
Measurable
Answers
Answer:
measurable
Explanation:
defining a hypothesis
in what type of operation, not regulated by 14 cfr part 119, may a commercial pilot act as pilot in command and receive compensation for services?
Answers
A commercial pilot may act as pilot in command and receive compensation for services in operations that are not regulated by 14 CFR Part 119. These operations are commonly referred to as "Part 91" operations.
Part 91 operations include private, non-commercial flights, flights operated by owner-operators, and flights conducted for compensation or hire that do not meet the criteria for being regulated under Part 119.
Examples of Part 91 operations include flight instruction, aerial photography, and air taxi services that do not require a Part 135 operating certificate. However, it is important to note that while these operations may not be subject to the same regulations as Part 119 operations, they are still subject to FAA safety regulations and the pilot must meet the qualifications and requirements set forth by the FAA for the specific operation.
It is also important for pilots to have a thorough understanding of the specific regulations and limitations that apply to their particular operation to ensure compliance with FAA regulations.
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Suppose you borrow $10,000 right now to start a business. if the terms of the loan require you to pay back $12,000 in 5 years, what is the implied annual compound interest rate?
Answers
Assume you borrow $10,000 proper now to start a business. if the phrases of the mortgage require you to pay returned $12,000 in 5 years, the implied annual compound interest rate: is 3. seventy one%
Implied annual compound interest charge = (future value / initial fee)^1/periods - 1
implied annual compound hobby price = (12,000 / 10,000)^1/five - 1
implied annual compound interest rate = (1.2)^1/5 - 1
implied annual compound interest fee = 1.0371 - 1
implied annual compound interest rate = 0.0371 or 3.seventy one%
Compound interest is the addition of a hobby to the predominant sum of a mortgage or deposit, or in other words, hobby on primary plus interest.
Compound interest is when you earn interest on each of the money you've stored and the interest you earn. So let's say you invest $1,000 (you're foremost) and it earns 5 percent (hobby rate or earnings) once a year (the compounding frequency).
The month-to-month compound interest system is used to discover the compound interest per month. The system of the monthly compound hobby is CI = P(1 + (r/12) )12t - P where, P is the major amount, r is the hobby fee in decimal form, and t is the time.
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what is nursing ?why is it needed?
Answers
Answer: What type of nursing?
which statement is not true regarding a critical asset in the enterprise environment
Answers
The statement that is not true regarding a critical asset in the enterprise environment is:
It can easily be replacedWhat is a critical asset?Critical assets are the main resources that sustain the daily operation of a business.
These assets are the lifeblood of the business so any attempt to replace them can significantly damage the smooth running of the organization. So, critical assets cannot be replaced.
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the market for land is competitive and in equilibrium at the rental rate of $500 per acre. if the supply of land is perfectly inelastic at 1000 acres, the total economic rent on this land is equal to:
Answers
The market for land is competitive and in equilibrium at the rental rate of $500 per acre. if the supply of land is perfectly inelastic at 1000 acres, the total economic rent on this land is equal to $100,000 by falls.
In this question, we are requested to determine and explain what occurs when the demand for land declines and, as a result, the rental rate likewise declines.
We started by spending a total of 1000 acres. Simply multiplying 1000 acres by the unit price of $500 results in a price of $500,000 for 1000 acres.
We now determine the cost or value of the land as demand declines.
This is equal to 400 * 1000, which is equal to $400,000.
Consequently, the decrease in net economic rent would be $50,000 - $400,000 = $100,000.
Therefore, when the demand for land declines, there would be a decrease of $100,000.
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A business goes to the trouble and expense of segmenting its markets when it expects that this extra effort will
Answers
When a business extra effort is expected to increase profit, they will incur an expense of segmenting its markets.
What is market segmentation?A market segmentation refers to segregating market into element that includes age, gender, occupation, income etc
In conclusion, when the business extra effort is expected to increase profit, they will incur an expense of segmenting its markets.
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The pure monopolist's demand curve is relatively elastic:
A) in the price range where marginal revenue is positive.
B) at all points where the demand curve lies above the horizontal axis.
C) in the price range where total revenue is declining.
D) in the price range where marginal revenue is negative.
Answers
The correct answer is D) in the price range where marginal revenue is negative.
This is because when marginal revenue is negative, any increase in price leads to a decrease in total revenue, which makes the demand curve relatively elastic. In this scenario, the pure monopolist has to be careful when setting prices since a small increase in price can lead to a large decrease in the quantity demanded by consumers.
Therefore, the monopolist needs to find the optimal price point that maximizes profit without losing too many customers.Overall, understanding the elasticity of the demand curve is crucial for any business to make informed pricing decisions.
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An account is defined as a record of the business activities related to a particular item. True or false?.
Answers
The statement "An account is defined as a record of the business activities related to a particular item" is true
What is an account?
An account refers to records of transactions in an understandable format which summarizes the performance of a particular business which is the item referred to in the question
There must be business activities such as buying and selling involving cash or credit transactions, for there to be accounting and also all of the transactions would be in respect of a particular business entity.
In short, the fact that account is a record of business dealings in respect of a particular item is perfectly correct.
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The impact of Furman v. Georgia (1972) was that states had to
promise to use the death penalty only with approval from the Supreme Court.
throw out the old Miranda warning and write a new one.
agree to throw out all state laws regarding crime and impose national standards.
create clear standards to be applied fairly before imposing the death penalty.
Answers
Answer: D.create clear standards to be applied fairly before imposing the death penalty.
Explanation: The answer it's right there
The impact of Furman v. Georgia (1972) was that states had to
create clear standards to be applied fairly before imposing the death penalty.The Furman v. Georgia caseThis was a case that had to do with the cruel and the unusual way that people faced in the death penalty.
The case ruled that the death penalty was unconstitutional if it was applied in a discriminatory way.
It ruled that the eight amendment was being violated if used in this way.
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