The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Gonas Company has a bond with a coupon rate of 10 percent outstanding. Both bonds have 18 years to maturity, make semiannual payments, and have a YTM of 7 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Answers

Answer 1

If  the interest rates suddenly rise by 2 percent,  the percentage change in the price of these bonds are : 19.73%, 16.56%.

Percentage change

Using this formula to find the current price of a bond

P=C×1-1(1+YTM)^n/YTM +F /(1+YTM)^n

Where:

P =Current price of a bond

C = Coupon payment,

YTM = Yield to maturity

n = Time to maturity

F =Face value of a bond

The Faulk Corp. bond

C = Coupon rate / number  of payments per year × face value = 4% / 2×$1,000 = $20

n = 13 years = 36 half-year periods

YTM = 7% annually = 7% / 2 = 3.5% semiannually

F = $1,000

hence,

P=20× 1- 1/(1+0.035)^26/0.035 +1,000/ (1+0.035)^36

P=20× 1- 1/(1.035)^36/0.035 +1,000/ (1.035)^36

P= $405.81 + $289.83

P=$695.61

Assuming the annual YTM rises by 2%, the semiannual YTM = 9% / 2 = 4.5%.

Price of the Faulk Corp. bond:

P=20× 1- 1/(1+0.045)^36/0.045 +1,000/ (1+0.045)^36

P=20× 1- 1/(1.045)^36/0.045 +1,000/ (1.045)^36

P= $353.32 +$205.03

P=$558.38

Percentage change:

Percentage change = $558.38 - $695.61/$695.61×100%

Percentage change =19.73%

Gonas Company bond:

C =Coupon rate / number of payments per year× face value = 10% / 2 × $1,000 = $50

n = 18 years = 36 half-year periods,

YTM = 7% annually = 7% / 2 = 3.5% semiannually

F = $1,000

P=50× 1- 1/(1+0.035)^26/0.035 +1,000/ (1+0.035)^36

P=50× 1- 1/(1.035)^36/0.035 +1,000/ (1.035)^36

P= $1,014.52 + $289.83

P=$1,304.35

Assuming the annual YTM rises by 2%, the semiannual YTM = 9% / 2 = 4.5%, bond :

P=50× 1- 1/(1+0.045)^36/0.045 +1,000/ (1+0.045)^36

P=50× 1- 1/(1.045)^36/0.045 +1,000/ (1.045)^36

P= $883.30 +$205.03

P=$1,088.33

Percentage change:

Percentage change = $1,088.33 - $1,304.35/$1,304.35×100%

Percentage change =16.56%

Therefore the percentage change in the price of these bonds are : 19.73%, 16.56%.

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Related Questions

QUESTION DOWN BELOW! PLEASE HELP WILL GET 100 POINTS IM STUCK PLEASE HELP EXPLAIN ITS DUE SOON!!
many thanks!!!
ITS DUE SOON!

Answers

1) given

2) base angles theorem

3) PN=QN

4) [tex]\angle 3=\angle 4[/tex]

5) MP=OQ

7) PQ, QP

8) MQ=PO

9) ASA

I need the answer to this with an explanation. This is ratio.

Answers

Given that 2500 students entered the Teacher Education Program.

[tex]\text{Number of male students + Number of female students = 2500}[/tex]

20% of the students are male. Thus,

[tex]\begin{gathered} \text{Number of male students = 20\% of 2500} \\ \Rightarrow\frac{20}{100}\times2500 \\ \text{Number of male students = 500} \end{gathered}[/tex]

Thus,

[tex]\begin{gathered} \text{Number of male students + Number of female students = 2500} \\ 500\text{ + Number of female students =2500} \\ \Rightarrow Number\text{ of female students = 2500 -500 = 2000 } \end{gathered}[/tex]

Thus, the ratio of the number of males to the number of females is evaluated as

[tex]\begin{gathered} \text{Number of female : Number of male} \\ 2000\text{ : 500} \\ reducing\text{ to the lowest term gives} \\ 4\colon1 \end{gathered}[/tex]

Hence, the ratio of the number of females to the number of males is thus 4:1

What’s the correct answer answer asap

Answers

the answers is a. bones to bones

Help me pls with this fast!

Answers

Answer:

Step-by-step explanation:

...

Answer:

2x+9=7

Step-by-step explanation:

"Sum" means addition

"2 times a number" since the number is unknown we use a letter, since its a letter we usually don't need parentheses

"and" is usually used ror addition so another clue

"is" just means equals

Let ​f(x)=x+1 and ​g(x)=x^2-x. Find and simplify the expression. ​(f​+g)(​-5)

Answers

Answer:

26

Step-by-step explanation:

​(f​+g)(​-5)=

​f(-5)+g(-5)=

​-5+1+(-5)^2-(-5)=

-4+25+5=

-4+30=

30-4=26

Solve: (6x2 + 5x + 1) ÷ (x + 2).

A.) 6x - 7
B.) 6x - 7 - x/15 + 2
C.) 6x + 8
D.) 6x - 7 + 15/ x+ 2

Answers

Answer:

d

Step-by-step explanation:

Divide

6x2+5x+1

x+2

=6x−7+

15

x+2

A sales representative receive a monthly salary of $1600 plus a commission of 3% of the total monthly sales. write a linear model that relates total monthly wages W to sales S

Answers

Answer:

The equation is W = 1600 + .03S

What is the value of x that makes this equation true?4x+5=x+14

Answers

Explanation:

To solve for x first we have to put all terms that contain x together:

[tex]4x+5=x+14[/tex]

Substract x from both sides:

[tex]\begin{gathered} 4x-x+5=x-x+14 \\ 3x+5=14 \end{gathered}[/tex]

Now substract 5 from both sides:

[tex]\begin{gathered} 3x+5-5=14-5 \\ 3x=9 \end{gathered}[/tex]

And finally divide both sides by 3:

[tex]\begin{gathered} \frac{3x}{3}=\frac{9}{3} \\ x=3 \end{gathered}[/tex]

Answer:

x = 3

Two trains leave the station at the same time, one heading east and the other west. The eastbound train travels 12 miles per hour slower than the westbound train. If the two trains are 300 miles apart after 2 hours, what is the rate of the westbound train?

Answers

Answer:

81 mph

Step-by-step explanation:

2x+2(x-12) = 300

I need help with question #8

Answers

There is no picture provided. Make sure when you make a question with a specific understanding of the photo, you press choose file, or add a photo. Also, remember to double check!!



Hope this helps!!

Solve for x.
(x - 2)² = 2

Answers

The value of x is 4 and 0

What is basic algebra ?

Algebra is a branch of mathematics that helps translate real-world problems or situations into mathematical formulas. Mathematical operations like addition, subtraction, multiplication, and division as well as variables like x, y, and z are needed to construct a valid mathematical expression. Coordinate geometry, calculus, and trigonometry are just a few of the mathematics topics that involve algebra. A simple algebraic equation is 2x + 4 = 8. Algebraic expressions are the result of performing operations on variables and constants, such as addition, subtraction, multiplication, division, etc. Consider that James and Natalie came up with the notion to arrange matchsticks into numerical patterns when they were fiddling with them.

Given that : [tex](x-2)^{2} = 2[/tex]

[tex](x-2)^{2} = 2[/tex]

(x-2)=±2

x= 4

x=0

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ALGEBRA 1 HW!! PLEASE HELP WILL GIVE BRAINLYEST please only answer b​

Answers

Answer:

20

Step-by-step explanation:

Every 1 hour it cost $20

You can find this by using the equation y2-y1 divided by x2-x1

y2 is 40 y1 is 20

x2 is 2 and x1 is 1

40-20 divided by 2-1 equals 20

In 25 minutes Shiloh can In 10 laps around the track. Determine the number of
laps he can run
per minute.
A.
Find the constant of proportionality in this situation.
Answer:
B. Write an equation to represent the relationship.
Answer:

Answers

Shiloh can run 04 laps per minute if in 25 minutes Shiloh can run in 10 laps around the track and it is Laps per minute is simply division.

What is constant of proportionality?

The ratio that is connecting two given numbers is what is known as the exact proportional relationship is the constant of proportionality. Constant ratio, constant rate, unit rate, constant of variation, and even rate of change are other names that can be given for the constant of proportionality.

To represent the equation in laps per min,

L/m = 10/25

= 2/5

= 0.4 laps per minute

The constant of proportionality in this situation

10/25 = 0.4

The equation to represent the relationship.

y = 0.4x

How do you determine the proportionality constant?

Identifying the same x and y variables is the first step in determining the proportionality constant. X will be the weight and Y will be the number of butter sticks in order to calculate the exact weight to stick ratio.

Then to determine the proportionality constant, we can use the constant equation k = y x.

Why is K the proportionality constant?

When two variables are directly or indirectly proportional to one another, their relationship can be expressed using the formulas y = kx or y = k/x, where k specifies the degree of correspondence between the two variables. The proportionality constant, k, is often used.

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A company manufactures calculators and sells them at $50 each. The fixed costs are $4000 per month and the variable costs per unit are $32. Calculate the number of units that need to be manufactured and sold per month to break even.

Answers

The number of units that is needed to be manufactured and sold per month by the company to break even is 222 units

How to calculate the number of units needed to break even ?

The first step is to write out the parameters given in the question

The sales price per unit is $50

The fixed cost per month is $4000

The variable cost per unit is $32

The formula for calculating the units needed to break even can be expressed as follows

Fixed Costs ÷ (Sales price per unit – Variable costs per unit)

4000/(50-32)

= 4000/18

= 222.2

Hence 222 units are needed to be manufactured per month

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2. Solve the following addition problem. Remember to carry as necessary.
6 cu yd 9 cu ft
134 cu in
+ 1 cu yd 12 cu ft
200 cu in

Answers

The solution to the given addition problem is 150.6 ft^9.

Converting everything to the same unit is the simplest solution to this problem.

The conversions are:

1 cubic yard = (27 cubic feet)

1 cubic inch = (0.000578704 cubic feet)

The addition can be performed as,

(6 cu yd × 9 cu ft × 134 cu in) + (1 cu yd × 12 cu ft × 200 cu in)

=  [6(27 cu ft) × 9 cu ft × 134(0.000578704 cu ft)] + [1(27 cu ft) × 12 cu ft × 200(0.000578704 cu ft)]

= 150.6 ft^9

The result of the addition is 150.6 ft^9.

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NO LINKS!!! Part 2 Please help me with this Similarity Practice​

Answers

Answer:

C' = (15, 7)

Dilation by a scale factor of 3 with the origin (0, 0) as the center of dilation, followed by a translation of 1 unit up.

Step-by-step explanation:

If two triangles are said to be similar, their corresponding angles are congruent and their corresponding sides are in the same ratio.

Given vertices of triangle ABC:

A = (0, 0)B = (1, 4)C = (5, 2)

To maintain similarity (and thus keep the corresponding angles of both triangles the same) but not maintain congruence, dilate triangle ABC.

Given:

B' = (3, 13)

If ΔABC is dilated by a scale factor of 3, with the origin as the center of dilation, B' = (3, 12).  If the triangle is then translated 1 unit up, B' = (3, 13), which matches the given coordinate of point B'.

Therefore, the series of transformations is:

Dilation by a scale factor of 3 with the origin (0, 0) as the center of dilation.Translation of 1 unit up.

Mapping Rule:  (x, y) → (3x, 3y + 1)

Therefore, the coordinates of point C' are:

⇒ C' = (3(5), 3(2) + 1) = (15, 7)

On Monday, your English teacher gives you a list of twenty-five vocabulary terms to be memorized. You memorize all of them Monday night and do not look at the list again. Because you do not study again, you forget 6% of the list each day.a. Does this problem represent exponential growth or decay? How do you know?b. Which exponential formula below will you use for this problem? Why?(Your choices are f(x) = a (1 + r) or f(x) = a (1-ry')c. Write the formula for this specific problem. Explain how you know where each number goes in the formula.d. How many terms will you remember seven days later for the test? Show all your work and explain your computations.

Answers

Answer:

a. Exponential decay

b. f(x) = a (1 - r)^x

c. f(x) = 25(1 - 0.06)^x

d. 16 terms

Explanation:

a. Does this problem represent exponential growth or decay? How do you know?

Each day the number of terms that you know is less than the day before, so there is a decrease in the vocabulary terms memorized. It means that the problem represents exponential decay.

b. Which exponential formula below will you use for this problem? Why?

The formula for the exponential decay is:

[tex]f(x)=a(1-r)^x[/tex]

Where a is the initial value and r is the rate of decay.

So, the formula that you will use is f(x) = a (1 - r)^x

c. Write the formula for this specific problem. Explain how you know where each number goes in the formula.

The initial value is 25 terms and the decay rate is 6%, so the specific equation is:

[tex]f(x)=25(1-0.06)^x[/tex]

d. How many terms will you remember seven days later for the test? Show all your work and explain your computations.​

Now, we need to replace the value of x by 7, so:

[tex]\begin{gathered} f(7)=25(1-0.06)^7 \\ f(7)=25(0.94)^7 \\ f(7)=25(0.6485) \\ f(7)=16.21 \end{gathered}[/tex]

Therefore, you will remember 16 terms seven days later.

which of the following is the rational algebric expression of the verbal phrase below? the ratio of the sum of 2x and 4y and the difference of 8x and 10y.

Answers

638x636y73637zy

Answer:

Because first multiple and divide and Again Multiple and ans

The slope of a line is

Answers

Answer:

-2

Step-by-step explanation:

You have to use rise over run. For example, to go from (-1,0) to (-2,2), you have to go up 2 squares and go left 1. That gives you 2/-1, which is -2. Hope this helps!

ASAP!! The Brown family baked 3 pies for Thanksgiving. They made a pumpkin pie, an apple pie, and a cherry pie. They ate 0.75 of the pumpkin pie, 0.5 of the apple pie, and 0.6 of the cherry pie How many pies did the Brown family eat in all? Record your answer as a decimal number.

Answers

Answer: The Brown family ate 1.85 pies in all

Step-by-step explanation: If you think about it all you have to do is 0.75+0.5= 1.25 and then you do 1.25+ 0.6  and then get 1.85 so they ate 1.85 pies in all

Hope this helped!!!!

Consider the graph of the function f(x) = 2^x Which statements describe key features of function g if g(x) = f(x + 2)?

Answers

The statements that describe key features of function g if g(x) = f(x + 2) are;

a. y-intercept at (0,4)

b. domain of {x|-∞ < x < ∞}

c. horizontal asymptote of y = 0

What are the features of the Function?

We are given the function f(x) = 2^(x)

We want to find the features of the function g if;

g(x) = f(x + 2)

Let us first find f(x + 2);

g(x) = f(x + 2) = 2^(x + 2)

The y-intercept is when x = 0;

g(0) = 2^(0 + 2)

g(0) = 4

Some features in a function that limit the x values are: roots, fractions, etc.

g(x) = 2^(x + 2) does not have any restricting value of x.

This means the value of x ranges from negative infinity to positive infinity.

Hence, the domain is: (-∞, ∞)

Next, calculate the horizontal asymptote.

To do this, we plot the graph of g(x) --> see attachment

Then we trace a horizontal line from the horizontal part of the curve of g(x) till it gets to the y-axis.

From the attached graph of g(x), the line touches the y-axis at y = 0

So, the horizontal asymptote is: y = 0

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The missing options are;

a. y-intercept at (0,4)

b. domain of {x|-∞ < x < ∞}

c. horizontal asymptote of y = 0

d. horizontal asymptote of y=2

e. y-intercept at (0,1)​

Answer:

see photo

Step-by-step explanation:

Plato/Edmentum

Gus has skydived 4 more times than Nico. Emma has skydived 16 times, how many times has Gus skydived?

Answers

We know that Emma has skydived 16 times, and also Emma has skydived twice as many times as Nico, so Nico has skydived:

[tex]\begin{gathered} \text{Emma}=2\cdot\text{Nico} \\ 16=2\cdot Nico \\ Nico=\frac{16}{2}=8 \end{gathered}[/tex]

So, Nico has skydived 8 times.

Finally, we know that Gus has skydived 4 more times than Nico, so:

[tex]\begin{gathered} Gus=\text{Nico}\cdot4 \\ \text{Gus}=8\cdot4=32 \end{gathered}[/tex]

Gus has skydived 32 times.

what is the ratios of 29:1, and the math eqation.

Answers

The ratio of 29: 1 is 29
The mathematical equation is 29/1

What is ratio?

A ratio can simply be defined as an ordered pair of numbers, say x and y, written in the form x / y where  of the denominator is note equivalent to zero.

It is known to explain how many times a given number contains another number in a proportion.

It is seen as the comparison of two numbers , elements or quantities having the same units and moving further to explain how much of one of the element or quantity is present in the another one.

This is achieved based on their magnitude or sizes.

A proportion is a mathematical equation with which two ratios are set equivalent to each other.

A ratio is expressed mathematically as;

x/y

Given the ratio;

29: 1

The equation is = 29/1 = 29

Hence, the ratio is 29

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Molly grows corn on her farm to sell for pig feed. one of her fields produced 176.4 bushels of corn this year . if corn is currently selling 3.75 per bushel, how much will molly earn from this field

Answers

This year, one of her fields yielded 176.4 bushels of corn. $661.5 will Molly make from this field if corn is now selling for $3.75 per bushel.

Given that,

On her farm, Molly raises corn that she sells for pig food. This year, one of her fields yielded 176.4 bushels of corn.

We have to find how much will Molly make from this field if corn is now selling for $3.75 per bushel.

We have to multiply

=176.4×3.75

=661.5

Therefore, $661.5 will Molly make from this field if corn is now selling for $3.75 per bushel.

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In the high school band there are two percussionist to every seven marching instruments at the high school bad has a total of 180 members that how many percussionists are on the sidelines

Answers

The number of percussionists on the sidelines is 40.

What is a proportion?A proportion is an equation that equalizes two ratios. By dividing the provided values, we may determine the missing value. One way to express the proportion formula is as a: b::c : d = a/b = c/d. Here, a and d are the extreme terms and b and c are the mean terms.

Given:

Total number of members in high school band = 180

Let's assume "x" is the number of percussionists that are on the sidelines.

According to the question, there are two percussionists to every seven marching instruments. Then,

Number of members = 7 + 2 = 9

You can write the following proportion knowing that there are 180 total members of the high school band:

[tex]\frac{x}{180} = \frac{2}{9}[/tex]

Solving the proportion to get the value of x,

[tex]x = \frac{2}{9} * 180[/tex]

x = 40

Therefore, there are 40 percussionists on the sidelines.

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Increase 10kg by 20%

I'm genuinely tonta right now please help

Answers

When 10kg is increased by 20%, the number becomes 24%

What is the result of the percentage increase?

Percentage is a measure of frequency that is used to express a quantity as a number out of 100. The sign that is used to represent percentages is %. In order to convert a number to a percentage, multiply the number by 100.

The new increased number = (100% + percentage increase) x initial number

(100 + 20%) x 20%

120% x 20%

1.20 x 20% = 24%

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go quick if you have a good brain

see attachment beloww.

Answers

Answer:y=21°

x=8°

Step-by-step explanation:

3y+27=90

3y=63

y=21°

x+90°+8x+18°=180°

9x+108°=180°

9x=72°

x=8°

A friend lends you $720, which you agree to repay with 4% interest. How much will you have to repay? How much was the interest?

Answers

Answer: $16081.60

Step-by-step explanation:

1)

FV=3000(1.03)=$3090

2)

240*1.04=$249.60

3)

FV=14000(1.02)^7

FV=14000(1.1487)

FV=$16081.60

6 + root 27over 4 - root 3

Answers

When the expression given as 6 + √27/4 - √3 is simplified, the value is 6 - 1/4√3

How to determine the value of the expression?

The expression is given as

6 + root 27over 4 - root 3

Mathematically, the expression can be represented as

6 + √27/4 - √3

Expand 27 as the product of 9 and 3

So, we have the following equation

6 + √27/4 - √3 = 6 + √(9 * 3)/4 - √3

Expand the products in the above equation

So, we have the following equation

6 + √27/4 - √3 = 6 + √9 * √3/4 - √3

Evaluate the square root of 9 in the above equation

So, we have

6 + √27/4 - √3 = 6 + 3/4√3 - √3

Evaluate the like terms in the above equation

So, we have the following equation

6 + √27/4 - √3 = 6 - 1/4√3

Hence, the value of the expression given as 6 + √27/4 - √3 is 6 - 1/4√3

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These box plots show the basketball scores for two teams.Bulldogs55708090105Wolverines355580 8596ㅏ30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110Basketball scoresCompare the shapes of the box plots.

Answers

Solution

The bullfdng dataset has its median close to the center of the boxplot.

- This implies that the dataset is symmetric.

- The wolverine dataset has its median moved to the right at 80, implying that it is NOT symmetric.

- However, because there is a skew to the left of datapoints, we say that the dataset is negatively skewed

Final Answer

OPTION A

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Red blood cells carry oxygen to the muscle tissues of the body (cells) Oxygen in the circulatory system (blood) attaches to the hemoglobin molecule on red blood-cells The muscle tissues use the ATP molecule to function properly Oxygen diffuses across the cell membrane of the cell Inhaled oxygen travels through the respiratory system to the lungs The oxygen in the lungs diffuses to the circulatory system (blood) Oxygen in the air is inhaled by the respiratory system (nose and mouth) Oxygen inside the muscle cell is used by the mitochondria to produce the energy molecule adenosine triphosphate (ATP). Read the excerpt from The Great Gatsby by F. Scott Fitzgerald. Then answer the question that follows. I lived at West Egg, thewell, the less fashionable of the two, though this is a most superficial tag to express the bizarre and not a little sinister contrast between them. My house was at the very tip of the egg, only fifty yards from the Sound, and squeezed between two huge places that rented for twelve or fifteen thousand a season. The one on my right was a colossal affair by any standardit was a factual imitation of some Htel de Ville in Normandy, with a tower on one side, spanking new under a thin beard of raw ivy, and a marble swimming pool, and more than forty acres of lawn and garden. It was Gatsby's mansion. Or, rather, as I didn't know Mr. Gatsby, it was a mansion inhabited by a gentleman of that name. My own house was an eyesore, but it was a small eyesore, and it had been overlooked, so I had a view of the water, a partial view of my neighbor's lawn, and the consoling proximity of millionairesall for eighty dollars a month. Across the courtesy bay the white palaces of fashionable East Egg glittered along the water, and the history of the summer really begins on the evening I drove over there to have dinner with the Tom Buchanans. Daisy was my second cousin once removed, and I'd known Tom in college. And just after the war I spent two days with them in Chicago.How does the use of juxtaposition in this excerpt affect the meaning of the passage affect your understanding of the setting? It allows the reader to visualize only one side of the courtesy bay. It makes the reader think of how little eighty dollars is for rent. It illustrates a literal and figurative divide between two places. It gives insight into what happened after the war. The distance an object travels is determined by how fast it goes and for how long it moves. If an object's speedremains constant, the formula is d=rt, where d is the distance, r is the speed, and t is the time.If you drive at 50 miles per hour for 5 hours, how far will you have traveled?a. 200 milesb. 10 milesc. 250 milesd.300 miles during the hundred years war, what impact did the canon (with gunpowder of course) have in the war? kara wants to better understand what a job in social work would be like. she has reached out to dr. thomas, who works in this field, to learn more. what kind of interview will kara be conducting with her? group of answer choices selection behavioral informational case next -5/9 multiplied by (-4) x^2=49 which numbers are solutions to the equation the conversion of malate to oxaloacetate in the citric acid cycle takes place with the conversion of nad to nadh. in this reaction, nad is a(n) and is to nadh. how does the captain adjust the rules to fit circumstances Doughnuts are sold in bags and bags and doughnuts. a bag holds 10 doughnuts and a carton holds 10 doughnuts. tom buys b bags of doughnuts and c cartons of doughnuts he buys a total of t doughnuts write down a formula for t in terms of b and c graph g(x). please and thank you! 4.50 How many grams of iron(III) sulfide form when 62.0 mL of 0.135 Miron(III) chloride reacts with 45.0 mL of 0.285 M calcium sulfide? What calculation is showed on the number line If f(x)=1-x, which value is equivalent to f1?02 Ms. Lantz recently participated in the Rocket Run 5k. The distribution of finishing time for females is approximately normal with a mean of 57 minutes with a standard deviation of 8 minutes. According to the Houston Chronicle, a healthy female person should be able to run a 5K in less than 50 minutes.Part C: Ms. Lantzs finishing time was 0.85 standard deviations below the mean. What was her finishing time?Answer:____ minutes Find two consecutive whole numbers that 72 lies between.