The Whitmoer Co. is currently issuing both 20-year and 30-year bonds at par. The bonds pay 7 percent annual interest and have face values of $1,000. You decide to purchase one of each of these bonds and hold them for ten years. Assume that the yield to maturity on each of these bonds is 9.6 percent ten years from now.

Required:
a. Determine the expected price of each bond five years from now.
b. Given your results in a, determine the percent price appreciation on the 20-year bond and percent price appreciation on the 30-year bond. Which bond has a higher interest rate risk?

Answers

Answer 1

Answer:

3rwt4gw3g

Explanation:


Related Questions

The designer department received 4 dresses in style 1 436 that retailed for R
$400.00 each. All 4 dresses were reduced to $280.00 each before they were sold. What was the markdown percent on this style?​

Answers

Answer:

30%.

Explanation:

i dont have an explanation i just use the calculator for it.

Suppose Lizzie consumes soda and pizza. If the last bottle of soda she drinks provides 100 units of utility per dollar while the last slice of pizza she eats provides 300 units of utility per dollar:_____.
a. the demand curve for soda must have shifted outward.
b. the demand curve for pizza must have shifted inward.
c. Lizzie should buy more pizza and less soda to maximize her utility.
d. the indifference curve for soda and pizza must have rotated inward.
e. the marginal rate of substitution between soda and pizza equals 3.

Answers

The answer is option c. Lizzie has to buy more pizza and less soda so that she can maximize her utility.

The reason why this is the answer is because, the utility that she gets from the consumption of pizza is greater than the utility that she derives from consuming soda.

From the question, when she eats pizza she gets 300 units of utility compared to when she drinks her last soda that only gives her 100 units of utility.

In conclusion, She should buy more of what gives her maximum utility. That is Pizza.

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If someone received cash 2 700 for sold goods, which journal account should be created?

Answers

Answer:

cash a/c dr

To sales a/c

( being goods sold in cash )

· what is organisation structure?
· what additional integrating mechanisms might be needed in the modern MNE?
illustrate answer with examples where possible.

Answers

Answer:

An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.

Answer:

An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization.

Corinne, an escrow agent, is preparing for the Thomas/Trenton closing in four days. Which of these documents will Corinne prepare? Unset starred question She'll prepare a seller net sheet to disclose the seller's net profit on the sale. Working with the lender, she'll prepare the Loan Estimate, which details the costs the buyer and seller will pay at closing. Working with the lender, she'll prepare the settlement statement, which details the costs the buyer and seller will have at closing. Working with the title company attorney, she'll prepare the preliminary title commitment.

Answers

The answer is "In collaboration with both the lender, she will write a settling declaration detailing the price to the buyers and sellers.", and the further calculation can be defined as follows:

A trust agreement is generally an arrangement between both the depositor, its buyer, usually the beneficiary, and us as trustees.The account holder shall, in accordance with the terms, deposit with us as a scroll agent a particular document or sum.In four days Corinne, the escrow agent, prepared for close Thomas / Trenton.In collaboration with both the lender, they would produce the settlement statement detailing that cost to be paid by the buyers and sellers to close those documents.Therefore, the "third option" is the only correct choice.

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Suppose the United States maintains a price floor for spinach. This policy might decrease revenues for spinach farmers if the: multiple choice supply of spinach is inelastic. supply of spinach is elastic. demand for spinach is inelastic. demand for spinach is elastic.

Answers

Answer:

Demand for spinach is elastic.

Explanation:

The price floor, which is maintained by the United States, is the minimum price for selling the goods. This price is set above the equilibrium price, which results in excess supply while demand for the same goods remains constant.

Since the prices for spinach cannot be set lower than the price floor and the policy is decreasing the revenue output for spinach farmers then this probably means that the prices are set too high which has decreased the demand for spinach. This means that the demand for spinach is elastic.

Question 15
The highest and best use of real estate is its
a)
most profitable use, without other considerations.
b) most environmentally sound use.
c)
present use unless its improvements have reached the end of their useful life.
d) most profitable legally and physically permitted use.

Answers

Answer:

Option D.

Explanation:

4. The relationship of a principal broker and affiliated broker is one of
O agency.
O principality.
O subagency.
O commingling
5. The relationship of a principal broker and brokor is formally

Answers

principality because i just took the test and i got a 100

write the work of an architectural engineer .​

Answers

Answer:

?????????????????

?????????????????

Answer:

Architectural engineers apply science and technology to the real world by designing buildings that enhance our standard of living and improve our quality of life. They do this by combining building systems – structural, electrical, mechanical, lighting, acoustics and fire protection - into an integrated whole. These creative problem solvers are constantly facing the challenges of the future like sustainable building materials and green energy sources. Architectural engineers are trained to use the latest technologies – like computer based building design and analysis software (Revit, eQUEST, RISA-3D, etc), building information modeling (BIM), and advanced sensors & controls – to design, build, and operate the various systems within a building.

Estimated inventory (units), May 1 19,800 Desired inventory (units), May 31 19,400 Expected sales volume (units): Area W 6,600 Area X 10,000 Area Y 7,500 Unit sales price $13.00 The number of units expected to be sold in May is a.24,100 b.28,920 c.21,690 d.14,100

Answers

Answer:

a.24,100

Explanation:

The computation of the no of units expected to be sold is given below:

= expected sales volume units

= 6,600 units + 10,000 units + 7,500 units

= 24,100 units

Hence, the no of units expected to be sold is 24,100 units

hence, the correct option is a.

Monetary stimulus is only helpful to an economy: __________

a. experiencing significant negative externalities.
b. that's in recession.
c. with few public goods.

Answers

That is in recession. B is the correct answer.

Calculation of national output at Market Prices is known as _________

a.
Real GDP

b.
Nominal GDP

c.
Non-monetary income

d.
None of these

Answers

Answer:

A

Explanation:

mention two demand side Approaches which are used by RSA government to promote economic growth and development​

Answers

The two demand-side approaches will be "Fiscal policy" and "Monetary policy".

Fiscal policy - Through the utilization of public expenditure and fiscal policies that impact economic circumstances, particularly economic variables, comprising overall payment mode as well as productivity expansion, is considered as a Fiscal policy.Monetary policy - It requires the implementation done by that of the banking system of a community to manage supplies of currency and accomplish economic objectives promoting economic development.

So the above is the right answer.

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Another term for "food poisoning" is?

Answers

Answer:

botulism. salmonella.

Explanation:

The following information applies to the questions displayed below.
On January 1, Year 2 Grande Company had a $14,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $64,000 of service on account. The company collected $60,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account
What is the amount of uncollectible accounts expense recognized on the Year 2 Income statement?
a. $ 280
b. $3,500
c. $1,210
d. $1,280

Answers

Answer:

the answer is 3,500

3,500

Question 9 Bond A is zero-coupon bond paying $100 one year from now. Bond B is a zero-coupon bond paying $100 two years from now. Bond C is a 10% coupon bond that pays $10 one year from now and $10 plus the $100 principal two years from now. The yield to maturity on bond A is 10%, and the price of bond B is $84.18. Assuming annual compounding, what is the price of Bond A?

Answers

The price of bond A is $90.91

The computation of the price of bond A is as follows:

= Paying amount × (1 + rate)^-1

= $100 × (1 + 0.10)^-1

= $100 × 1.1^-1

= $90.91

Therefore we can conclude that the price of bond A is $90.91

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Provo, Inc., had revenues of $10 million, cash operating expenses of $5 million, and depreciation and amortization of $1 million during 2008. The firm purchased $500,000 of equipment during the year while increasing its inventory by $300,000 (with no corresponding increase in current liabilities). The marginal tax rate for Provo is 40 percent. Free cash flow: What is Provo's free cash flow for 2008

Answers

Provo's free cash flow for 2008 is $2,600,000

              Income Statement

Revenue                        $10,000,000

Operating expenses   - $5,000,000

Depreciation               -  $1,000,000

EBIT                                $4,000,000

Interest expenses        - $0

Taxes                            - $1,600,000    (40% * $4,000,000)

Net Income                     $2,400,000

Depreciation                  +$1,000,000

Operating cash flow      $3,400,000

Free cash flow = Operating Cash flow - Purchase of equipment - Increase in Inventory

Free cash flow = $3,400,000 - $500,000 - $300,000

Free cash flow = $2,600,000

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_______ applications allow you to perform tasks on your computer.
Question 5 options:

Desktop

Laptop

Mobile

None of the above

Answers

Answer:

none of the above

Explanation:

cause I think the answer is software applications which isnt on the options.

I hope this helps

Mr A is unemployed but he decides to move out the labor market to stay at home and enjoy the rest of his life by inheritance. Other things equal, the action will decrease the unemployment rate. True or false? and why

Answers

Answer:

False

Explanation:

In general, the unemployment rate in the United States is obtained by dividing the number of unemployed persons by the number of persons in the labor force (employed or unemployed) and multiplying that figure by 100.

https://www.britannica.com › story

la·bor force

all the members of a particular organization or population who are able to work, viewed collectively.

"a firm with a labor force of one hundred people"

Dictionary

Definitions from Oxford Languages

You purchase a digital camera for $495.00, a case for $38.50, a zoom lens for $216.45, and a
memory card for $74.95. The sales tax is 7.15 percent.
12. What is the total price of your purchase before sales tax?
A. S824.90
B. $749.95
C. $883.88
D. $801.25

Answers

the answer is c because you have to add them up and idrk

You are the manager of an apartment complex with 50 units. When you set rent at $800/month, all apartments are rented. As you increase rent by $25/month, one fewer apartment is rented. Maintenance costs run $50/month for each occupied unit. What is the rent (in dollars) that maximizes the total amount of profit

Answers

Answer:

The rent (in dollars) that maximizes the total amount of profit is $1,050.

Explanation:

Note: See the attached excel file for the Calculation of the Rent (in dollars) That Maximizes the Total Amount of Profit.

The rent (in dollars) that maximizes the total amount of profit is the rent per unit that has the highest profit.

From the attached excel file, the highest profit is $40,000 (in bold red color) and this occurs when the rent per unit is $1,050 (in bold red color).

Therefore, the rent (in dollars) that maximizes the total amount of profit is $1,050.

A business school has 15 full-time faculty and seven of them have tenure. A random sample of six faculty are randomly selected to form a committee. What is the probability that exactly three of the faculty on the committee have tenure?

Answers

The probability where exactly three of the faculty have tenure is 0.3916.

The computation of the probability where exactly three of the faculty have tenure is given below:

Since there are 6 faculty from 15 should be chosen so it should be [tex]^{15}C_6[/tex]

Now there are 3 faculty from 7 should be chosen so it should be [tex]^{7}C_3[/tex]  

Now the probability is

[tex]= \frac{^7C_3 \times ^8C_3}{^{15}C_6}[/tex]

= 0.3916

Therefore we can conclude that the probability where exactly three of the faculty have tenure is 0.3916.

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Identify whether each of the following items would appear on the bank side or the book side of a bank reconciliation. Outstanding checks Answer 1 Choose... Deposits in transit Answer 2 Choose... Bank service charges Answer 3 Choose... NSF Check

Answers

Answer:

Outstanding checks  - Book side

Deposits in transit - Book side

Bank service charges - Bank side

NSF Check - Book side

Explanation:

The bank reconciliation helps identify the transactions that have been recorded in the cash book but omitted from the bank statement and vice versa.

Considering the given items

Outstanding checks - These are checks that have been written and deducted from the cash balance in the book but yet to be recognized or cleared in the bank statement.

Deposits in transit - The amount would appear on the book side as it represents amounts that have been collected but yet to be deposited and subsequently recognized in the bank statement.

Bank service charges - These are charges that have been recognized in the bank but yet to be recorded or deducted from the cash balance in the books.

NSF Check - This represents customer's debt settlement via check that has not been honoured by the bank. Hence this will have to be deducted from the cash balance in the books

You are docking your boat. The current is pushing you toward the dock . What is the best way to dock

Answers

The best and the most secure way to dock a boat in a dockyard is by :

moving the boat parallelly along the dock, and approaching towards the dock slowly.

A dockyard is a place where ships and boats are sheltered and it provides a secure place to dock or station your boat and a secure place to access the boat.

Now when the current is pushing your boat towards the dock, the best way to dock your boat is :

Allow the current of the water to carry the boat towards the dock.We have approach slowly and parallelly towards the dock.We can also shift the gears whenever we need to adjust the position of the boat.We have to secure the bow lines as well as the stern lines.

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explain the term CEO in an organisation​

Answers

Answer:

The chief executive officer (CEO) is the top position in an organization and is responsible for implementing existing plans and policies, ensuring the successful management of the business and setting future strategy. The CEO is ultimately responsible for the success or failure of the organization.

At the end of the day, the cash register tape shows $1060 in cash sales, but the count of cash in the register is $1085. The proper entry to account for this excess is:

Answers

Answer:

Debit Cash $1085; credit Sales $1060;

Explanation:

credit Cash Over and Short $25.

In 2014, U.S. gross domestic product (GDP) was roughly $17.4 trillion. Given that the U.S. population was roughly 319 million people, per capita GDP in the United States in 2014 was roughly: ________


Answers

Answer:

$54,545

Explanation:

Step 1: Calculate the GDP

1 trillion = 1000 billion

$17.4 × 1000 = $17400 million

The GDP of the U.S. is 17400 million dollars

Step 2: Calculate the per capita GDP

GDP = 17400 million

Number of people = 319 million

Divide total GDP to number of people

[tex]\frac{17400}{319} \\\\= 54.5454[/tex]

The United States in 2014 was roughly 54,545 dollars.

Simone uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000 Simone's actual labor hours worked totaled:

Answers

Answer:

399,200

Explanation:

Select the true statement about the impact of automation on employment. a.) Automated processes have no effect on the number of employees needed in a business. b.) While some job loss may occur as a result of automation, the potential for job creation exists. c.) There will be a decreased need for workers who maintain robotic technologies. d.) Artificial intelligence has not been used much in industries other than transportation.

Answers

Answer:

b.) While some job loss may occur as a result of automation, the potential for job creation exists

Explanation:

Automation is the process by which a the production process that is usually managed by people becomes mechanised.

The control and monitoring functions that people usually do is now transferred to automatic devices.

While this will cause some job loss as a result of lack of skill to operate the new machines, it will also result in an avenue for fresh employment.

Employees can acquire the required skill to operate the machines that are now used in the production process.

Team Sports has 4.9 million shares of common stock outstanding, 2.9 million shares of preferred stock outstanding, and 29 thousand bonds. If the common shares are selling for $3.90 per share, the preferred share are selling for $15.9 per share, and the bonds are selling for 98.91 percent of par, what would be the weight used for common stock in the computation of Team's WACC

Answers

Answer:

The weight used for common stock in the computation of Team's WACC is 20.35%.

Explanation:

Since par value of a bond is $1,000, we have:

Bond selling price = Bond par value * Selling price percentage = $1,000 * 98.91% = $989.10

the weight used for common stock in the computation of Team's WACC can be calculated as follows:

Value of common stock = Number of shares of common stock outstanding * Common stock price per share = 4,900,000 * $3.90 = $19,110,000

Value of preferred stock = Number of shares of preferred stock outstanding * Preferred stock price per share = 2,900,000 * $15.9 = $46,110,000

Value of bond = Number of bonds * Bond selling price = 29,000 * $989.10 = $28,683,900

Team's total value = Value of common stock + Value of preferred stock + Value of bond = $19,110,000 + $46,110,000 + $28,683,900 = $93,903,900

Therefore, we have:

Weight of common stock = Value of common stock / Team's total value = $19,110,000 / $93,903,900 = 0.2035, or 20.35%

Therefore, the weight used for common stock in the computation of Team's WACC is 20.35%.

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