The Acme Company manufactures widgets. The distribution of
widget weights is bell-shaped. The widget weights have a mean of 64
ounces and a standard deviation of 5 ounces.
Use the Standard Deviation Rule, also known as the Empirical
Rule.
Suggestion: sketch the distribution in order to answer these
questions.
a) 95% of the widget weights lie between and
b) What percentage of the widget weights lie between 59 and 74
ounces? %
c) What percentage of the widget weights lie above 49 ?
In: Statistics and Probability
Consider a bond with 10,000 USD par value, 8% coupon rate paid semi annually and 10 years to maturity. Assuming a 10% required return, answer the following questions:
Find the PV of the bond
Find the PV of the bond given it’s a Zero-Coupon Bond.
What is the bond’s price elasticity if the required return changed to 12%?
Calculate the duration of the bond.
What is the modified duration at an 8% yield?
What is the percentage change in bond’s price for an increase in yield for 0.3 percentage point.
In: Finance
A survey asked how often people used the internet.
96 responded that they never use it
214 said they rarely use it
572 said they use it occasionally
368 said they use it all the time
a) Design, and complete, a table to represent the frequency distribution for the answers outlined above. Make sure to include frequency, relative percentage, and cumulative percentage (.5 point).
b) Design, and complete a graphical representation of the data (.5 point).
How do I do this with SPSS
In: Statistics and Probability
In: Advanced Math
A BBB-rated corporate bond has a yield to maturity of 7.6%. A U.S. treasury security has a yield to maturity of 5.7%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 6.0% and have five years to maturity.
a. What is the price (expressed as a percentage of the face value) of the treasury bond?
b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond?
c. What is the credit spread on the BBB bonds?
In: Finance
|
Corp has bonds on the market with 16yrs maturity, a YTM% of10.5, and a price=$943. The bonds make semiannual payments. The face value is $1,000. |
| Required: |
|
What's the coupon rate? Hint: Solve for the semiannual payment (PMT). Multiply it by 2 to make it annual. Divide the result by the face value to get the percentage coupon rate. This is exactly like the book, video and practice examples. (Do not round intermediate calculations. Round your whole percentage to 2 decimal places (e.g., 8.16).) |
| Coupon rate | % |
In: Finance
Both Bond Jill and Bond Ned have 11 percent coupons, make semiannual payments, and are priced at par value. Bond Jill has 3 years annuity, whereas Bond Ned has 20 years to maturity. Both bonds have a par value of 1,000.
If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
If interest rates suddenly fall by 2 percent, what is the percentage change in the p;rice of these bonds?
In: Accounting
A BBB-rated corporate bond has a yield to maturity of 9.1 %. A U.S. treasury security has a yield to maturity of 7.3 %. These yields are quoted as APRs with semiannual compounding. Both bonds pay semi-annual coupons at a rate of 7.5 % and have five years to maturity. a. What is the price (expressed as a percentage of the face value) of the treasury bond? b. What is the price (expressed as a percentage of the face value) of the BBB-rated corporate bond? c. What is the credit spread on the BBB bonds?
In: Finance
A genetic experiment with peas resulted in one sample of offspring that consisted of 435 green peas and 154 yellow peas. a. Construct a 90% confidence interval to estimate of the percentage of yellow peas. b. It was expected that 25% of the offspring peas would be yellow. Given that the percentage of offspring yellow peas is not 25%, do the results contradict expectations? a. Construct a 90% confidence interval. Express the percentages in decimal form. nothing less than p less than nothing (Round to three decimal places as needed.)
In: Statistics and Probability
Consider a bond selling at par ($100) with a coupon rate of 6% and 10 years to maturity. (a) What is the price of this bond if the required yield is 15%?
(b) What is the price of this bond if the required yield increases from 15% to 16%, and by what percentage did the price of this bond change?
(c) What is the price of this bond if the required yield is 5%?
(d) What is the price of this bond if the required yield increases from 5% to 6%, and by what percentage did the price of this bond change?
In: Finance