Questions
Miller Corporation has two bonds outstanding. Both bonds have coupon rates of 10% and one has...

Miller Corporation has two bonds outstanding. Both bonds have coupon rates of 10% and one has a maturity of 10 years, while the other has a maturity of 20 years. Interest is paid semi-annually. Calculate the following for both bonds.

A) If market rates for bonds of equal risk fell to 8% what would be the maximum price an investor would be willing to pay for these bonds?
B) If market rates for bonds of equal risk remained at 10%, what would be the bonds' current worth?
C) If market rates for bonds of equal risk rose to 12%, what would be the bonds' theoretical value?

Bond A: 10 years semiannually = 20 periods
Bond B: 20 years semiannually = 40 periods

please need detail answers with workings

In: Finance

The number of new contributors to a public radio station's annual fund drive over the last...

The number of new contributors to a public radio station's annual fund drive over the last 11 years is provided. Develop a linear trend equation to forecast the number of contributors for each year. 27, 18, 30, 29, 37, 40, 50, 47, 52, 70, 68

what is the forecasted number of contributors for year 6? (show answer to 2 decimal places)

What is the forecasted number of contributors for year 12? (show answer to 2 decimal places)

In: Statistics and Probability

Info 1. Current YTM = 8.5% 2. Liabilities at the end of 5 years = 10,000(1.085)^5...

Info

1. Current YTM = 8.5%

2. Liabilities at the end of 5 years = 10,000(1.085)^5 = 15,036.56

3. Buy the bond that has a coupon of 8%, YTM 8.5%, N = 5

Calculate -

1. Duration

2. Can you match duration of your liabilities?

3. Calculate what happens if your YTM rises by 1%

***please only answer question 2 [Can you match duration of your liabilities?]. i will post 3 after i get the answer for 2. i included them in case they were important.***

answer for part 1 - https://www.chegg.com/homework-help/questions-and-answers/info-current-ytm-85-liabilities-end-5-years-10-000-1085-5-15-03656-buy-bond-coupon-8-ytm-8-q30555163

In: Finance

Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2....

Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2.

The data for April were as follows:

Services provided to:

Activity

Costs

S1

S2

P1

P2

S1

$100,000

25%

40%

35%

S2

$80,000

10%

55%

35%

Fixed Costs

P1

$400,000

P2

$500,000

One of the algebraic equations in linear form for an activity using the reciprocal method is

S2 = 80,000 +.25S1

S1=100,000 + .25S2

S2 = 80,000 + .35S1

S1 = 100,000 +.10S2

In: Accounting

Consider a stock that does not pay dividend. A one-year European put option with strike $40...

Consider a stock that does not pay dividend. A one-year European put option with strike $40 is trading at $2.40 and a one-year European put option with strike $50 is trading at $12.30. The risk-free interest rate is 5% per annum with continuous compounding. Construct an arbitrage strategy.

In: Finance

Suppose that there are 27 matches originally on the table, and you are challenged by your...

Suppose that there are 27 matches originally on the table, and you are challenged by your dinner partner to play this game. Each player must pick up either 1, 2, 3, or 4 matches, with the player who picks up the last match pays for dinner. What is your optimal strategy? (Describe your decision rule as concisely as you can.)

In: Statistics and Probability

The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an...

The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $44. The a la carte option has a budgeted average price of $33 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $24 and the a la carte option averages $19 per meal in budgeted variable cost. The manager estimates that 2,600 people will order a meal in any month.

For July, the restaurant served a total of 2,400 meals, including 940 buffet options. Total revenues were $42,300 for buffet meals and $52,560 for the a la carte meals.

Required:

a. Compute the activity variance for the restaurant for July.

b. Compute the mix and quantity variances for July.

In: Accounting

Judge and Cable (2010) report the results of a study demonstrating a negative relationship between weight...

  1. Judge and Cable (2010) report the results of a study demonstrating a negative relationship between weight and income for a group of women professionals. Following are data similar to those obtained in the study. Income figures are rounded to the nearest $1,000.

BMI (X)

Income (Y)

22

125

26

78

37

49

31

63

40

35

27

84

42

38

33

51

24

93

38

44

SSX

SSY

452

7430

  1. Conduct a Pearson’s r hypothesis test to determine if there is a statistically significant correlation between weight and income. Use a two-tailed test with α = .05.
    1. Step 1 (û or ü)
    2. Step 2 (û or ü)
    3. Step 3
      1. Numerator (û, ü, or üü)
      2. Denominator (û, ü, or üü)
      3. r (û, ü, or üü)
    4. Step 4 (û or ü)
    5. Step 5 (û, ü, or üü)
    6. Interpretation (û, ü, or üü)

In: Statistics and Probability

Show the decimal integer 44 in 7-bit sign magnitude, one's complement, two's complement and excess-63 respectively...

Show the decimal integer 44 in 7-bit sign magnitude, one's complement, two's complement and excess-63 respectively in the given order, separated by comma.

In: Computer Science

Consider the following data for two variables, x and y. x 22 24 26 30 35...

Consider the following data for two variables, x and y.

x 22 24 26 30 35 40
y 13 20 34 35 40 36

(a)Develop an estimated regression equation for the data of the form ŷ = b0 + b1x. (Round b0 to one decimal place and b1 to three decimal places.)

ŷ =

(b)Use the results from part (a) to test for a significant relationship between x and y. Use α = 0.05.

Find the value of the test statistic. (Round your answer to two decimal places.)

F =

Find the p-value. (Round your answer to three decimal places.)

p-value =

(c)Develop an estimated regression equation for the data of the form ŷ = b0 + b1x + b2x2.(Round b0 to one decimal place and b1 to two decimal places and b2 to four decimal places.)

ŷ =

(d)Use the results from part (d) to test for a significant relationship between x, x2,

and y. Use α = 0.05. Is the relationship between x, x2,and y significant?

Find the value of the test statistic. (Round your answer to two decimal places.)

test statistic=?

Find the p-value. (Round your answer to three decimal places.)

p-value =

(e) Use the model from part (c) to predict the value of y when x = 25. (Round your answer to three decimal places.)

predicted value=?

In: Statistics and Probability