Business, 15.07.2021 15:20, naiomireyes74p2aybs
Bond Prices and Interest Question Economists argue that bond prices and interest rates are inversely related. On a piece of notebook paper, please use the following scenario to answer the questions. The government offers a $1,000.00 bond, paying 10% interest, for a period of one year. Show all work. a) Please calculate the interest income for this bond. b) Please determine the price of the bond in the secondary market, if prevailing interest rates fell from 10% to 9.5%. [hint: remember, the bond face value, interest, and maturity date cannot change, so when this bond purchaser remits the bond to the government, they will still be paid your response from question (a)] c) Create an idealized bond and money market model to show the relationship from the scenario in (b). Describe the outcomes. d) Starting from the original scenario, please calculate the price of this bond in the secondary market if the prevail-ing interest rate climbed from 10% to 10.5%. e) Create an idealized bond and money market model to show the relationship from the scenario in (d). Describe the outcomes.
Answers: 2
Business, 22.06.2019 09:50, winterblanco
phillips, inc. had the following financial data for the year ended december 31, 2019. cash $ 41,000 cash equivalents 75,000 long term investments 59,000 total current liabilities 149,000 what is the cash ratio as of december 31, 2019, for phillips, inc.? (round your answer to two decimal places.)
Answers: 3
Business, 22.06.2019 21:00, atkinsonsinbraz
At present, the united states has an embargo against north korea because a. the two countries have extremely poor political relations. b. north korea will not adopt a capitalist government. c. north korean products are too difficult to use. d. north korea has an embargo on american products. e. products from north korea are in higher demand than american-made products.
Answers: 2
Bond Prices and Interest Question Economists argue that bond prices and interest rates are inversely...
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