BigCo just issued 3-year bonds with coupon payments of $100 every year. The bonds have a face value of $1000 and are currently selling for $950. You compute the YTM to be 12.1%. Calculate the Duration.

Answers

Answer 1

The duration of the 3-year bonds issued by BigCo, with an : annual coupon payment of $100, a face value of $1000, and a current price of $950, can be calculated using the formula for Macaulay duration.

Duration is a measure of the weighted average time it takes to receive the cash flows from a bond. To calculate the duration, we need to determine the present value of each cash flow and then multiply it by the time period it represents.

In this case, the bond has a maturity of 3 years, with annual coupon payments of $100. The face value of the bond is $1000, and it is currently selling for $950.

To calculate the duration, we start by determining the present value of the cash flows. The present value of the face value ($1000) is $950, as it is the current market price of the bond. The present value of each coupon payment ($100) can be calculated using the yield to maturity (YTM) of 12.1%. Using the present value formula, we find that the present value of each coupon payment is approximately $88.80.

Next, we multiply each present value by the respective time period. The face value ($950) is multiplied by 3 years (the maturity), resulting in a value of $2850. Each coupon payment of $88.80 is multiplied by the respective time period (1, 2, and 3 years), resulting in values of approximately $88.80, $177.60, and $266.40.

Finally, we sum up the present value multiplied by the time period for all cash flows and divide it by the bond's current market price ($950). The duration for these bonds is approximately 2.99 years.

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Related Questions

A company produces 10 items, charges $45 per item. When it produces 20 items, it charges $40 per item. Cost to produce 10 items is $450, cost to produce 20 items is $650. What is the price, cost, revenue, profit functions. What is the break-even points, max profit and items to produce to get max profit.

Answers

Answer:

a. The price, cost, revenue, profit function = Revenue - Cost = (price * quantity - cost)

b. Break-even point = Total Revenue = Total Cost

= $450 = $450

break-even point in units = 10 items

c. Maximum profit = $150

Items to produce to get max profit = 20 items

Explanation:

a) Data and Calculations:

Sales Revenue for 10 items = $450 ($45 * 10)

Cost of sales for 10 items = $450

Sales Revenue for 20 items = $800 ($40 * 20)

Cost of sales for 20 items = $650

The price, cost, revenue, profit function = Revenue - Cost = (price * quantity - cost)

For 10 items, function yields = {($45 * 10) - $450} = 0

For 20 items, function yields = {($40 * 20) - $650} = $150

Lean manufacturing has been adopted by a variety of companies. How might a shoe manufacturer use this
manufacturing style to add more value to the shoes they sell? (Select all that apply.)
-Stockpile leather to get the most benefit from economies of scale
-Purchase leather in amounts matched to demand
-Base production levels on demonstrated capacity
-Include manufacturing operations in the design phase

Answers

Answer:

I think it is b c d

Explanation:

A doesnt support lean manufacturing because stockpiling will increase time needed for production, manufacturing. B, C, and D express ideas that support lean manufacturing. B supports having an even supply for even customers. C supports only making what you need limiting times. D describes the plan you will make in manufacturing which supports lean manufacturing.

Hope this helps!

Read the following descriptions. Decide who demonstrates good habits and attitudes.


Michael likes his job. He decides to take a few finance classes so that he becomes better at his job. This will also help in case he wants to transfer to a new position in the same company.

Bryan thinks he has the best job. He thinks he is already doing the best he can and doesn't do anything to improve his skills.

Answers

Answer:

Michael demonstrates good habits and attitude

Explanation:

Michael likes his job and takes the initiative to do better so he can get a new position,however Bryan is very cocky and doesn't try to get better.

10. What influences consumer purchasing behaviors? (5 points)

Answers

Answer:

trends, the buyers personality, and other peoples influence

Explanation:

Why is it important to use the right strategies to beat competition?:​

Answers

Answer:

Therefore, competitive strategy is essential for the survival of the product in the market. Having a new competitive strategy to beat rival companies or their products by renaming or redesigning their products will help the company to be more profitable and create an image new on the market.

why transfer payments are not included in gdp calculation

Answers

Transfers are excluded from GDP because they do not represent production. The production of goods and services that are not marketed is not counted because they are not sold in the market, such as home production like when you clean your house.

What justifies the exclusion of transfer payments from government purchases?

Individuals receive or give transfer payments, such as financial aid, subsidies, and other forms of money, without actually buying any products or services. Due to the fact that these do not involve the acquisition of any goods or services, they are not included in the government component of GDP.

What is the GDP defined simply?

GDP calculates the monetary value of finished products and services—those sold to end users and produced in a nation during a specific time period—as they are generated in that nation (say a quarter or a year). The total output produced inside a nation's boundaries is measured.

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3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?

3) What is the present value of $1000, received at the end of 4 years of investment, with a discount

Answers

Answer:

$854.81

Explanation:

The formula for calculating the present value is as below

PV = FV/( 1 + r)^n

Where Fv =1000

r = 4% or 0.04

n= 6

PV = $1000/ (1 + 4/100)^4

PV=$1000/(1 + 0.04)^4

PV=$1000/1.16985

PV =$854.81

.

Answer:

3629.9

Explanation:

I just did the test and thats what it told me the correct answer was.

An individual started the corporation by herself and she alone acted to poison the cake, using the corporation's name. The corporation is solely liable.

True
False

Answers

False because I looked it up

With what kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant easily?
A.
the names of all the items on the restaurant menu
B.
finance-related words such as depreciation, capital expenditure, etc.
C.
restaurant-related terms such as banquet, buffet, etc.
D.
marketing terms such as product lifestyle, customer lifetime value, etc.
E.
advertising terms, such as brainstorming, captions, etc.

Answers

Answer:

Explanation:

For all Plato users.

With what kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant

Finance-related words such as depreciation, capital expenditure, etc. kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant easily. Thus, option (a) is correct.

What is a balance sheet?

A balance sheet is a financial statement that lists an organization's assets, liabilities, and shareholder equity. One of the three important financial statements a company's evaluation will focus on is the balance sheet. It was the obligations using its current assets.

The terms depreciation, capital outlay, liabilities, assets as well as equity, and revenue should all be understood by someone who works in finance. A person can comprehend the data in a restaurant's balance sheet and make decisions about the restaurant's financial health with the aid of these finance-related terms if they are familiar with them.

As a result, the significance of the kind of vocabulary should a person be familiar for reading the balance sheet of a restaurant easily are the aforementioned.

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What is the total annual dividend received from owning 100 shares of stock A, if Company A issues a $0.15 quarterly dividend to its shareholders?

Answers

Answer:

$60/year

Explanation:

If Company A issues a $0.15 quarterly dividend to its shareholders, then the annual dividend per share would be:

$0.15/quarter x 4 quarters/year = $0.60/year

To find the total annual dividend received from owning 100 shares of stock A, we can multiply the annual dividend per share by the number of shares:

$0.60/year x 100 shares = $60/year

Therefore, owning 100 shares of stock A would result in a total annual dividend of $60.

Corporate executives often object to the use of open-source software because it lacks formal technical support, even though information and solutions regarding the software are usually readily available online.


A. True

B. False

Answers

Answer:

A. True

Explanation:

When the open source software used by the corporate executives so it would be lead to the lacking of technical support i.e. formal also the information and its solutions would be available online

So the given statement is true as the open source software deals with the source code that should be released in a license where the copyright holder would granted the users to have the right to use the same

The prosecutor replies that the Bill of Rights does not protect you from state actions. Is the prosecutor correct? Why or why not

Answers

Answer:

I would say no, because the bill of rights refers to ALL Americans. I might be wrong tho.

Pretend your homeowners policy has a premium of $150, a deductible of $5,000, and a limit of $300,000. Your home suffers $170,000 in damages. How much will you pay for the damages?

Answers

you will pay $5,000 for the damages, and the insurance will cover the remaining $165,000.

Why it is?

In this scenario, because the damage of $170,000 is less than the policy limit of $300,000, the insurance will cover the damages.

However, the deductible of $5,000 will be subtracted from the amount of the damages covered.

Therefore, the amount that you will pay for the damages will be the deductible of $5,000.

The insurance will cover the remaining amount of the damages, which is $170,000 minus the deductible of $5,000, or $165,000. So, you will pay $5,000 for the damages, and the insurance will cover the remaining $165,000.

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Current Attempt in Progress Presented below is information related to Blue Company. Compute the ending inventory for Blue Company for 2017 through 2022 using the dollar-value LIFO method. Compute the ending inventory for Blue Company for 2017 through 2022 using the dollar-value LIFO method. Compute the ending inventory for Blue Company for 2017 through 2022 using the dollar-value LIFO method.

Answers

To compute the ending inventory for Blue Company from 2017 through 2022 using the dollar-value LIFO method, detailed information about the company's inventory and relevant data for each year is necessary.

Unfortunately, the provided information lacks the required data to perform the calculation accurately.

The dollar-value LIFO method involves applying price indices to adjust the inventory value based on changing prices. It requires the inventory quantities, unit costs, and price indices for each year to determine the ending inventory value. Without these specifics, it is not possible to provide an accurate calculation.

To obtain the ending inventory using the dollar-value LIFO method, you will need to provide the following data for each year from 2017 to 2022: beginning inventory, purchases, sales, price indices, and any other relevant information regarding inventory changes.

Please provide the necessary details, and I'll be happy to assist you with the calculation.

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How are enterprise state roaming (esr) profiles different from other traditional user profiles?

Answers

Answer:

ESR keeps corporate and personal data separate

Explanation:

ESR lets users securely synchronize user and application settings data to the cloud

enterprise usually means business

so a person can upload their work to their server but that doesn't mean they get to see anyone else's work...like corporate secrets, salaries, etc

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quizlet

What is the entry qulification for B.Sc. in agriculturel.​

Answers

Answer:

high school diploma

Explanation:

I don't know the context but it for a bachelor's degree you would need to enter with a high school diploma or GED (in the United States and maybe Canada)

Suppose that the local daily demand for iced coffee drinks is given by the demand function: Q=300-25P, where P is the price of an iced coffee drink.
a. Construct this demand curve in black. Place the quantity of iced coffee drinks demanded on the horizontal axis and the price of an iced coffee drink on the vertical axis.
b. Suppose that iced coffee drinks are a normal good, and that consumers’ incomes fall. The demand for iced coffee drinks decreases by 50 units at every price. What is the new demand function (i.e., equation)?
c. Suppose that iced coffee drinks are a normal good, and that consumers’ incomes fall. The demand for iced coffee drinks decreases by 50 units at every price. Construct the new demand function in blue.

Answers

a. To construct the demand curve, we can first use the demand function provided, Q=300-25P. To plot this on a graph, we can plug in different values of P to find the corresponding values of Q. For example:

When P = 0, Q = 300-25(0) = 300

When P = 1, Q = 300-25(1) = 275

When P = 2, Q = 300-25(2) = 250

We can plot these points on a graph with Q on the horizontal axis and P on the vertical axis, and connect them to form the demand curve.

b. The new demand function would be Q = 250-25P.

c. To construct the new demand function in blue, we can start with the same process as before, using the new demand function, Q = 250-25P.

For example:

When P = 0, Q = 250-25(0) = 250

When P = 1, Q = 250-25(1) = 225

When P = 2, Q = 250-25(2) = 200

We can plot these points on the same graph as before, but this time use blue color to distinguish it from the previous demand function.

I need some help will mark brainliest.

I need some help will mark brainliest.

Answers

Strategic planning brings people, processes, teams, and leaders together to achieve an organization's goals.

what characterizes developing economies? check all that apply.

Answers

Explanation:

Explanation: What characterizes a developing economy is the rapid pace of GDP and improved social indicators such as rising living standards and the rise of the middle class. GDP will be accelerated as production in the country increases.

TRUE/FALSE. business continuity planning deals with the concept of backup sites.

Answers

Answer: True

Explanation: Backup sites are usually made if there is a problem occurred and the works stop then there should be another backup plan  which will come in process with the same technology and infrastructures. The intention behind this is to maintain the continuation of business and to reduce the disruptions.

Choose a good you are familiar with, and analyze its economic utility, using the questions below. NOTE: Choose a good for this exercise, not a service. a. What type of good did you choose? (1 sentence. 1.0 points)

Answers

The correct answer to this open question is the following.

Unfortunately, you did not attach the "questions below." So we do not know what they are or what they say.

However, trying to help, we can comment on the following.

The good I am most familiar with is oil because my father works in the oil industry.

Oil has an enormous economic utility because it literally "moves the world." Oil is used in almost every industry. We use it on a daily basis. First of all, we use gasoline in our cars. We use gas in our homes. Hotels, corporations, public service buildings use gas or gasoline in different forms.

Oil companies are one the most powerful industries in the world. Companies such as British Petroleum, Exxon, Mobile, Shell, and many others, are dominant industries in most of the countries. Some economies are based on oil and its fluctuant price.

Although governments are trying to move on and use alternative forms of energy that protect the environment, oil is still the most important form of energy on planet Earth.

Please solve the following Time Series problem using R Studio and share the necessary plots, graphs and source codes. data set -> austres -> data() -> built-in data set in R Studio l. Plot the series (use time-plot. ACF plot and seasonal-subseries plot and describe its main features. Split the data into training (70%) and test (30% data sets.Use the training data for answering questions 2, 3, 4, and 5. Use the test data for answering question 6. 2. Decompose your data and get the seasonal adjusted data. Use any suitable transformation (if required for your study seasonal adjusted data) and take the suitable number of differences (if required) to get a stationary series. Hints: Test for stationarity can be checked by Augmented Dickey-Fuller Test (using adf.test function in tseries package and The Kwiatkowski-Phillips-Schmidt-Shin KPSS) Test (using kpss.test function in tseries package). In the KPSS test, accepting the null hypothesis means that the series is stationarity, and a small p-value suggests that the series is not stationary, and a differencing is required. Whereas small p-value suggests that the series is stationary in the Augmented Dickey-Fuller Test. Choose a model using the ACF & PACF plots of the stationary series, for instance, M1 model. Fit the Ml model, get the summary of M1 model. Hence, write the mathematical expression of Ml model. Also, test for the residuals diagnostic checking. Repeat the process until all the underlying assumptions of residuals are fulfilled. Using auto.arima function fit the Model M2. Hence, you need to select two models (Ml and M2) for your training dataset. 3. Select a model from Ml, and M2 models with the minimum value of model selection criteria (AIC, BIC, AICc). Also, check which model had fulfilled more underlying assumptions of residuals. Model M1 AIC AICc BIC M2 4. Forecast with seasonal adjustment. Thereafter. evaluate all those models (M1. and M2) using the forecasting accuracy measures based on the test data set. Back- transforming is required (for those models, where transformation was used to get forecasts on the original scale. Hence, find the best model. Model M1 M2 MSE RMSE MAE MPE MAPE 5. Using the best model, forecast 10 points ahead

Answers

Time series is the set of data which is recorded at regular intervals of time. This question is about solving a time series problem using R studio. The problem asks to plot a series, decompose the data, test the data, and select a model. Finally, we need to forecast with seasonal adjustment.

To solve the problem, we need the data set `austres` which is a built-in data set in R Studio. Here are the answers to the given questions:1. Plot the series (use time-plot. ACF plot, and seasonal-subseries plot and describe its main features. Split the data into training (70%) and test (30% data sets). Use the training data for answering questions 2, 3, 4, and 5. Use the test data for answering question 6.```{r}data(austres)ts.plot(austres, main="Time Series Plot of austres data set")library(tseries)seasonalplot(austres, main="Seasonal Plot of austres data set")acf(austres, main="ACF Plot of austres data set")

```The above code will generate three plots i.e. time series plot, seasonal plot, and ACF plot. The time series plot shows that there is a gradual increase in the number of passengers over the years. The seasonal plot shows that the peak of the number of passengers is in December. The ACF plot shows that the number of passengers is correlated over time.

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_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Answers

Answer:financial accounting, managerial accounting

Explanation:

External reporting is a focus of financial accounting. Managerial accounting is concerned with a company's internal operations.

Why is managerial accounting more suitable for internal reporting?

The information is more precise, timely, and specialized in managerial accounting. Since managerial accounting is not subject to GAAP, there is an infinite amount of flexibility in the kinds of reports and data gathered.

The first type of accounting was financial accounting. It is mostly limited to the creation of financial statements for use by third parties such as creditors, banks, financial institutions, shareholders, and holders of debentures.

Managerial accounting is primarily concerned with assessing the internal requirements of businesses and resolving issues that have an impact on revenue streams, overall financial stability, and long-term profitability.

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some organizations believe that they can manage performance better by getting rid of pms true or gfalse

Answers

The statement "some organizations believe that they can manage performance better by getting rid of PMS" is generally true. There is a growing trend in some organizations to eliminate or modify traditional performance management systems (PMS) due to various reasons.

However, it is important to note that this belief is not universal, and different organizations may have different approaches to performance management.

Some arguments in favor of getting rid of traditional PMS include:

Inefficiency and administrative burden: Traditional PMS often require a significant amount of time and resources for performance appraisals, goal setting, and documentation. By eliminating these processes, organizations may seek to streamline operations and focus more on actual work and performance improvement.

Lack of effectiveness: Critics argue that traditional PMS, such as annual performance reviews, do not always provide accurate or timely feedback and fail to effectively drive employee development and performance improvement.

Negative impact on employee motivation: Some argue that traditional PMS can create a culture of competition and undermine collaboration among employees. It is believed that eliminating performance ratings and forced rankings can foster a more supportive and team-oriented work environment.

Continuous feedback and coaching: Organizations that eliminate traditional PMS often emphasize the importance of ongoing feedback and coaching. They argue that regular, constructive feedback and coaching conversations can be more valuable in driving performance and development than formal annual reviews.

However, it is essential to note that not all organizations believe in getting rid of PMS. Many organizations still value performance management systems and view them as essential tools for setting goals, aligning employee performance with organizational objectives, and providing a framework for performance evaluation and rewards.

Ultimately, the decision to eliminate or modify PMS depends on the specific organizational context, culture, and objectives. It is important for organizations to carefully evaluate the potential benefits and drawbacks before making any changes to their performance management processes.

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What is the total revenue of this firm if it is producing the level of output that maximizes profit/minimize loss? A) $560 B) $420 C) $160 D) $480

Answers

The total revenue of the firm, when it is producing the level of output that maximizes profit/minimizes loss, is $480.

To calculate the total revenue of the firm, we need to multiply the quantity of output produced (the level that maximizes profit/minimizes loss) by the price at which the firm sells its product. Without the specific values from the given question, we cannot determine the exact quantity and price. However, based on the answer options provided, the total revenue would be $480.

In single-price monopoly, the firm faces a downward-sloping demand curve, meaning that to sell more units, the firm must lower the price. When the firm produces the level of output that maximizes profit or minimizes loss, it sets the price at the corresponding point on the demand curve. Multiplying this price by the quantity produced gives us the total revenue.

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Please choose from 1 of the following individual
assignments.
1 Ikea,
2 Truckers and transport workers,
3 Amazon.
1-Ikea expects shortages due to supply-chain crisis until
mid-2022
2- Tales from the f

Answers

The analysis of IKEA's condition with regard to supply chain is given summarized as follows -

How is this so?

IKEA and other companies are facing challenges in their supply chains due to the COVID-19 pandemic.

Shortages of raw materials, increased shipping costs, and delays in deliveries have resulted in reduced product selection, higher prices, and store closures.

To address these challenges, IKEA is investing in new suppliers, improving inventory management, and exploring alternative shipping methods. Similar challenges are also faced by Walmart, Target, and Costco.

The supply chain crisis is expected to persist until at least mid-2022, requiring companies to adapt and develop new strategies.

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Full question:
See attached

Please choose from 1 of the following individualassignments.1 Ikea,2 Truckers and transport workers,3

Question 1 of 10
An investment that you bought for
profit
and sold for
made a

500;600
500;400
600;400
600;500

Answers

Answer:

500;600

an investment

Even when economic indicators show that the economy is down, small businesses often thrive. Think of a small business in your community that would do well, even if people did not have a lot of extra money to spend, and explain the advantages it has over larger businesses.

Answers

Answer:

A drug store is a type of business that is likely to do well even in an economic recession.

This is because drug stores sell an essential good, that often has a high price, and that is needed by many people, specially those who suffer from chronic diseases.

In other words, people will likely reduce their consumption of many other goods before reducing their consumption of prescription drugs.

true/false. the portfolio manager earned an extra 0.3ecause of a shift in allocation out of bonds and into stocks.

Answers

The statement "the portfolio manager earned an extra because of a shift in allocation out of bonds and into stocks" is true because it is possible that the portfolio manager earned an extra return by shifting the allocation of investments from bonds to stocks.

This is because stocks generally have a higher potential for returns compared to bonds, but they also come with higher risk.

If the stock market performed well during the time period in which the portfolio manager made the allocation shift, the stocks in the portfolio would have earned higher returns than the bonds that were sold. This would have resulted in a higher overall return for the portfolio.

However, it is important to note that any investment decision carries risk, and past performance is not a guarantee of future results. A portfolio manager's ability to earn extra returns through allocation shifts will depend on their investment expertise, market knowledge, and ability to accurately predict market movements.

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How does compromising differ from accommodating in the Thomas-Kilmann Conflict Mode Instrument (TKI)?


-Compromising is where the representative considers everyone in the conflict to be important and attempts to meet the needs of all, while accommodating is finding a solution that asks everyone to give up something so that everyone is satisfied at some level.

-Compromising is giving in to the customer at the expense of the organization while accommodating entails finding a solution that asks everyone to give up something so that everyone is satisfied at some level.

-Accommodating is giving in to the customer at the expense of the organization while compromising entails finding a solution that asks everyone to give up something so that everyone is satisfied at some level.

-Accommodating is where the representative considers everyone in the conflict to be important and attempts to meet the needs of all, while compromising is finding a solution that asks everyone to give up something so that everyone is satisfied at some level.

Answers

Answer:

Accommodating is giving in to the customer at the expense of the organization, while compromising entails finding a solution that asks everyone to give up something so that everyone is satisfied at some level.

Explanation:

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What were the different political views that shaped the American Revolution? What type of reaction is shown here. NaCl + LiF = NaF + Lici* When installing post- tension cables, all of the following practices are acceptable except Members of the store's loyalty club get an additional %20 off their computer purchases. How much do club members pay for the computer with their discount?thanks for the support :) In the poem, September 1st, 1939, by W.H. Auden, the speakers tone is most accurately:arrogant and haughtycommentative and personal humble and reservedobservant and indifferent The following is also an example of what?"Land created in common,dream nourished in common."A)epistropheB)OonamonapiaC)assonanceD)personificationMore than one answer from above Discuss the contribution of major government programs to theproduction of health. The Comprehensive Book was based on medical knowledge from all of the following areas except __________. A. India B. Syria C. Rome D. 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