You have a 2 year coupon bond with a coupon rate of 6 percent and a yield-to-maturity of 6.5 (continuously compounded). a. Compute the theoretical bond price. (Hint: Instead of using zero (spot) rate, use the yield to maturity) b. Compute the duration and convexity. c. Compute the new bond price when the yield to maturity moves up 10 basis points. d. Approximately compute the new bond price using only the obtained duration. (Hint: ΔP = − ⋅ Δy) 2 e. Approximately compute the new bond price with the duration and convexity. (Hint: ΔP = −P ⋅ ⋅ Δy + 1 2 P ⋅ ⋅ (Δy)

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?

In terms of the "great wheel of science", statistics are central to the research process (a) only between the hypothesis phase and the observation phase (b) only between the observation phase and the empirical generalization phase (c) only between the theory phase and the hypothesis phase (d) only between the empirical generalization phase and the theory phase

What type of negotiating strategy requires the supplier to open its books to the purchasers? a. competitive biddingb. cost-based price modelc. price-based modeld. market-based price modele. transparent negotiations