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1 year ago

6

Consider a 3-year bond with a par value of $1,000 and an 8% annual coupon. If interest rates change from 8 to 6% the bond's pric

e will:___________
a. Increase by $51.54
b. Decrease by 51.54
c. Increase by $53.46
d. Decrease by $53.46

1 answer:

masya89 [10]1 year ago

3 0

It’s B Decrease by 51.54 I hope this helps

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Antarctica has been continuously glaciated for the last __________ years. geology

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Answer:

15 million years

Explanation:

Antarctica is the continent that is spread around the South Pole, known for being covered with ice, and being the coldest place on the planet. The glaciation of the continent started around 34 million years, started to speed up since 23 million years ago, and became dominant on this continent only around 15 million years ago. Antarctica has not always been covered in ice, and in fact, through the majority of its geologic history Antarctica has been covered with dense forests. This was possible because the continent was much further north, relatively close to the Equator, thus its climate was tropical, subtropical, and temperate. That all started to change as first Pangaea, and then Gondwanaland broke apart, and Antarctica was the piece that was moving toward the South Pole. As Africa, India, Australia, and at last South America drifted apart from Antarctica, the continent was left surrounded by ocean waters where very cold ocean currents occurred because of the continental drift. On top of it the continent got into a place where the sunlight is very weak, thus gradually it started to freeze and had become almost entirely glaciated.

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2 years ago

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Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that

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Answer:

P0 = $51.9956 rounded off to $52.00

Explanation:

The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.

The formula for price of the stock today under this model is,

P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]

Where,

D0 is the dividend today or most recently paid dividend

g1 is the initial growth rate which is 20%

g2 is the constant growth rate which is 8%

r is the required rate of return

P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +

2.5 * (1+0.2)^3 / (1+0.15)^3 +

[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)

P0 = $51.9956 rounded off to $52.00

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1 year ago

Mountaineer excavation operates in a low-lying area that is subject to heavy rains and flooding. because of this, mountaineer pu

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Answer:

1. Recore the purchase of insurance in advance on March,1.

Debit Prepaid Insurance $36,000

Credit Cash $36,000

2. Record the adjusting entry on December, 31.

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Credits Prepaid Insurance $30,000

Explanation:

Mountaineer excavation purchases one year of flood insurance in advance on March 1, paying $36,000 ($3,000/month). The company records the insurance as the prepaid Insurance:

Debit Prepaid Insurance $36,000

Credit Cash $36,000

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Credits Prepaid Insurance $30,000

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Answer:

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