subject
Business, 20.12.2019 00:31 bre2795

Consider two bonds, a 3-year bond paying an annual coupon of 5%, and a 20-year bond, also with an annual coupon of 5% both bonds currently sell at par value. now suppose that interest rates rise and the yield to maturity of the two bonds increases to 8%

a. what is the new price of the 3-year bond? (round your answer to 2 decimal places.) price of the 3-year bond

b. what is the new price of the 20-year bond? (round your answer to 2 decimal places.) price of the 20-year bond

c. do longer or shorter maturity bonds appear to be more sensitive to changes in interest rates?

a. longer

b. shorter

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:30
You wants to open a saving account.which account will grow his money the most
Answers: 1
question
Business, 22.06.2019 02:30
Question 1 which of the following tasks use your roommate as a resource? choose all answers which apply. take order wash the mixer’s bowl and mix the dough spoon cookies onto the tray unload the cookies from the oven pack the cookies 1 points question 2 which of the following tasks use the tray(s) as a resource? choose all answers which apply. take order wash the mixer’s bowl and mix the dough bake the cookies cool the cookies accept payment 1 points question 3 determine the task time for the following tasks. fill integer numbers into the blank (e.g., 5 rather than 5.0) wash and mixing the dough: minute(s)/order spoon cookies onto the tray: minute(s)/order set up timer: minute(s)/order bake: minute(s)/order cool the cookies: minute(s)/order pack the cookies: minute(s)/order accept payment: minute(s)/order 2 points question 4 q4: determine the cycle time for the following resources. fill integer numbers into the blank (e.g., 5 rather than 5.0) kristen (you): minute(s) roommate: minute(s) oven: minute(s) 2 points question 5 what is the capacity rate (in orders/hour) of the roommate? 1 points question 6 what is the capacity rate (in orders/hour) of the whole process? 2 points question 7 how long (in minutes) it takes to process the first order?
Answers: 3
question
Business, 22.06.2019 12:10
In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.
Answers: 2
question
Business, 22.06.2019 17:40
Aproduct has a demand of 4000 units per year. ordering cost is $20, and holding cost is $4 per unit per year. the cost-minimizing solution for this product is to order: ? a. 200 units per order. b. all 4000 units at one time. c. every 20 days. d. 10 times per year. e. none of the above
Answers: 3
You know the right answer?
Consider two bonds, a 3-year bond paying an annual coupon of 5%, and a 20-year bond, also with an an...
Questions
question
Mathematics, 24.07.2019 02:40
Questions on the website: 13722367