Business, 18.02.2020 22:00 Sariyahhall1
An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates?
Price @ 8% Price @ 7% Percentage Change
10-year, 10% annual coupon
10-year zero
5-year zero
30-year zero
$100 perpetuity
***My textbook only shows me how to use a financial calculator to solve problems. Since I don't have one, but really need to know how to do this the old fashion way. Thanks***
Answers: 3
Business, 22.06.2019 10:40, meillsss
Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?
Answers: 1
Business, 22.06.2019 12:00, ambercombs
Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?
Answers: 1
An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 8% yield to...
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