A five-year bond with a $1,000 face value has a yield to maturity is 5.0% and it's coupon rate is 6.0% paid annually. The dirty price of this bond exactly 6 months after its second coupon payment is closest to ________
A) $1087.23
B) $1147.23
C) $1027.23
D) $1057.23
Answer: D
You might also like to view...
A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would the marketer most likely use to assist with the task?
A) demographic variables B) purchasing approaches C) situational factors D) personal characteristics E) operating variables
Fully explain what the following sentence in the chapter means: "The ongoing operations of U.S.-based Genentech gave Roche a huge, long-term U.S. dollar exposure. Roche financed the Genentech purchase with a short-term U.S
dollar bridge loan, which left the company vulnerable to increasing interest rates. To protect the Swiss franc value of Genentech's anticipated long-term cash inflows, Henri Meier set up a natural hedge by creating offsetting, long-term liabilities in U.S. dollars." Why was Roche vulnerable to increasing interest rates? Explain what a natural hedge is and how Roche used it?
Bill Anders is considering investing in a franchise in a fast-food chain. He would have to purchase equipment costing $420,000 to equip the outlet and invest an additional $30,000 for inventories and other working capital needs. Other outlets in the fast-food chain have an annual net cash inflow of about $120,000. Mr. Anders would close the outlet in 5 years. He estimates that the equipment could be sold at that time for about 10% of its original cost and the working capital would be released for use elsewhere. Mr. Anders' required rate of return is 8%. (Ignore income taxes.)See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.Required:What is the investment's net present value? Is this an acceptable investment?
What will be an ideal response?
_________ IT metrics measure the impact IT has on business processes and activities including customer satisfaction, conversion rates, sell-through increases, etc.
Fill in the blank(s) with the appropriate word(s).