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 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 = 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.
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 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 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 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
|
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 |
In: Statistics and Probability
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 | 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