when interest rates decline the duration of a 10-year bond selling at a premium

Answers

Answer 1

When interest rates decline, the duration of a 10-year bond selling at a premium decreases. Duration is a bond's sensitivity to interest rate changes, which depends on its maturity, coupon rate, and yield. The correct option is B.

For a bond selling at a premium, the coupon rate is higher than the market interest rate, so the bond price is above par value. As interest rates decline, the bond becomes more valuable, but the premium decreases, which shortens the bond's effective maturity and lowers its duration.

In this case, the bond's price will increase due to the drop in interest rates, but the premium will decrease because the coupon rate is higher than the market rate.

As a result, the bond's effective maturity will decrease, and its duration will decline. Therefore, if interest rates decline, the duration of a 10-year bond selling at a premium decreases. The correct option is B.

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Complete Question:

When interest rates decline, the duration of a 10-year bond selling at a premium?

A. increases.

B. decreases.

C. remains the same.

D. increases at first, then declines.

E. decreases at first, then increases.


Related Questions

Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the profit maximizing level of output, what will be the firm’s profit?

Answers

The firms profit that the monopolistic competitor will have Profit maximizing output is found where marginal revenue and marginal cost  curves intersect.

Monopolistic opposition exists while many companies provide competing services or products which might be similar, however no longer ideal, substitutes. The obstacles to entry in a monopolistic competitive industry are low, and the choices of any individual company do no longer directly affect its competition.

To find the proft/loss, find the area of rectangle enclosed by the quantity, price, cost and origin. But since cost per unit is higher than price per unit, the seller will actually incur a loss equal to a negative sign with it.

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In which type of organizational commitment does an employee choose to remain with the organization because of a feeling of obligation to do so?

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The type of organizational commitment an employee chooses to remain with the organization because of a feeling of obligation to do so is b. normative.

Regularly, they conclude they need to stay with a company due to the fact their advantages or destiny possibilities depend on their modern-day employment. As an example, an employee would possibly live with a corporation long time to obtain retirement advantages.

In organizational conduct and industrial and organizational psychology, organizational dedication is a person's psychological attachment to the corporation. Organizational scientists have also developed many nuanced definitions of organizational dedication, and several scales to measure them.

Organizational dedication refers to the relationship or bond employees have with their company (the company). That is based on commercial-organizational psychology and describes the man or woman's mental attachment to the organization.

The question is incomplete. Please read below to find the missing content.

In which type of organizational commitment does an employee choose to remain with the organization because of a feeling of obligation to do so?

a. continuance

b. normative

c. affective

d. associative

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Determining Liquid Assets and Current Liabilities. Based on these items, what is the total of the (a) liquid assets and (b) current liabilities?

Checking account balance $860

Retirement account balance $57,000

Credit card balance $117

Coin collection $450

Savings account balance $2,675

Current student loan payment due $220

Investment account balance $8,000

Mortgage $178,000

Answers

1. A
2. A
3. B
4. A
5. A
6. B
7. A
8. B
24,944 answers
(a) Liquid assets = Checking account balance + Savings account balance = $860 + $2,675 = $3,535

(b) Current liabilities = Credit card balance + Current student loan payment due = $117 + $220 = $337

What jobs should require personality tests prior to hiring a candidate?

Answers

The first thing you need to understand is that personality test results alone cannot be used to hire employees. First, candidates must be assessed for cognitive ability.

Cognitive ability alone predicts more than 60% of the variation in job performance. Of all personality traits, none predict performance variability greater than 5%. Use the validity studies conducted on personality tests as a guide. Before deciding which roles require character assessment, determine which roles may suffer significantly when hiring someone with character flaws. Personality tests are very useful when used properly.

Personality tests are very dangerous in recruitment as almost all are of some degree of dubious validity and can lead to lawsuits and discrimination complaints. However, we assume that there are methods for assessing personality suitability for different types of jobs and that tests, combinations of tests, etc., can be developed to assess personality in combination with structured interviews and other assessment tools. increase.

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In the graph above, the point E represents values which are __________ with current resource use and current technology.

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In the graph above, the point E represents values which are unattainable with current resource use and current technology.

What point is the unattainable point in the PPC?

PPC refers to production possibility curve, This is a curve that shows the relationship between available resources to what can be attained.

The points outside the curve implies that the producer cannot achieve what they want given the available resources in the economy, however if the points are within the curve the available resources can meet with the intended production

Point E is a is a point that is beyond the graph, that is outside the graph. The resources available cannot attain production.

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Complete question

This is an attachment

A self-employed psychologist treats clients in an office in his own house. What must the psychologist do with his house in order to best serve clients?

build extra rooms for client treatment
keep the house clean and private
buy snack foods for the kitchen
have a large television

Answers

Answer:

keep the house clean and private.

Explanation:

I know someone who does exactly this. Also, by keeping certain parts of the house either exclusively or predominantly for business, he can write that square footage off in taxes.

Answer:

Its B

Explanation:

Whether a purely competitive industry is a constant-cost industry or an increasing-cost industry, the final long-run equilibrium position of all competitive firms share which of the following characteristics

Answers

The correct answer is: In the long run, a multiple equality occurs where price is equal to marginal cost which is equal to minimum average total cost.

What does the long-run equilibrium position look like in a purely competitive market?

It occurs when companies are reaching zero economic profit and when there is no insertion of new companies in the sector. This occurs when, in the long run, companies produce at the minimum point of their average cost curve.

Therefore, in a long-term equilibrium situation in a competitive sector, production is adjusted to the minimum point of its average cost curve, where companies obtain only normal profits and not impacted by changes in demand, for example.

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All of these statements apply to effective decision makers except:

A. They take risks based on intuition and gut feelings
B. They are flexible and resourceful
C. They rely on personal ‘scripts’ that help them manage how to act and react
D. They recognize that the same solution may not apply to similar situations

Answers

Except for A because that’s just what makes sense

Which type of collaboration software could best help an organization increase engagement between remote employees and those who are ""in-house"" or organization-based?

Answers

The class of collaboration software that help an organization to increase its engagement between remote employees and in-house employees includes:

cloud-based forumsmessagingmeeting apps

What is a collaboration software?

A collaborative software is also called a groupware.

This class of software are computer program that shares data between computers for processing such as a several programs which have been written to harness the vast number of computers connected to the Internet.

Hence, the cloud-based forums, messaging and meeting app are the class of collaboration software that help an organization to increase its engagement between remote employees and in-house employees

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difference between moa and aoa?​

Answers

Answer:

AOA is a set of rule and regulations to govern the company's working. 2. MOA defines objectives, powers and constraints of the organization as a whole. AOA describe powers, duties, rights and liabilities of individuals associated with the organization (like members of the Board of Directors).

Explanation:

i hope i helped <3

Firms operating in the same market, offering similar products, and targeting similar customers are: a. allies. b. competitors. c. multimarket competitors. d. market commonality.

Answers

Firms operating in the same market, offering similar products, and targeting similar customers are competitors.

What are the positives of competition?

Businesses will be more motivated to reduce costs, enhance the quality of their goods and services, and give customers more options when a market is competitive. In other words, companies will need to innovate to differentiate their products from the competition.

why is competition bad for the economy?

Competition reduces your market share and clientele, especially if there is initially little demand for your goods or services. Your return on each product you make and sell may be reduced if a competitive market forces you to cut your prices to remain competitive.

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If LLC members have engaged in fraud or other bad conduct, a court may rely on ______ as the rationale to require members to compensate damaged parties.

Answers

the answer would be LLC membership engaging in bad fraud charges

Evanston Co. owned 60% of Montgomery Corp. Montgomery owned 75% of Noir Inc., and Noir owned 15% of Montgomery. This pattern of ownership would be called...

Answers

Evanston Co. owned 60% of Montgomery Corp. Montgomery owned 75% of Noir Inc., and Noir owned 15% of Montgomery. This pattern of ownership would be called Mutual Ownership. This type of ownership is also know as Reciprocal Ownership.

A reservation can be made by an owner in a rentable unit other than his own is Mutual owners or Reciprocal Owners capability. In this scenario, the owner of the unit he is living in receives any income generated from his own apartment during the time he is occupying another owner's property.

Not all businesses should use mutual ownership arrangements. Mutual models can, however, undoubtedly serve as the foundation for successful, high-performing companies and provide real competitive advantage. For instance, evidence suggests that collective ownership may help to guarantee that choices are made with the long-term viability of the company in mind. Mutual ownership structures and social enterprises provide a mechanism for communities to more evenly distribute the money that businesses generate in the neighborhood, as well as a way for communities to collaborate to address problems.

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Bill pays his property tax bill of $980 for the calendar year. He signs a purchase and sale contract on June 28th and closes the sale on July 15th. The contract states, that the seller is responsible for expenses on the day of closing. What is the amount of prepaid taxes due back to Bill at closing. Assume 360 days per year.

Answers

The answer is $530.83.

Given,

For the entire calendar year, Bill pays his $980 property tax bill.

On June 28, Bill formally executes a purchase and sell agreement.

The sale is completed by Bill on July 15.

According to the contract, the seller is in charge of the closing day costs.

A 360-day year is assumed.

Number days till the date of closing = Till June 30 + till July 15

                                                            = (360/2) + 15

                                                            = 180+15

                                                            = 195 days

Therefore, tax paid by Bill till this date will be Prepaid tax.

Amount of prepaid tax = (Total amount of tax/number of days in the year) * Number days till the date of closing

Substituting the values in the above formula,

Amount of prepaid tax = ($980/360) * 195

                                      = $530.833

Hence, the amount of prepaid taxes due back to Bill at closing is $530.83.

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write a real life experience that illustrates the process of recruiting, selecting, and training employees.​

Answers

I am not sure I’m sorry

Answer:

Being an astronaut

Explanation:

Tend to add value that is greater than the cost to incorporate them into the supply chain.

Answers

Utility is the 4 P's of the marketing mix's representation of the distribution function. They frequently provide value above the price of integrating them into the supply chain. Wholesalers are privately held businesses that own the products they handle. When consumers determine the worth of a product, they consider the advantages before deducting the disadvantages to determine whether the advantages outweigh the disadvantages.

Everything that shoppers consider before making a purchasing decision is referred to as a value package. Value of a product or service and the quality of the service experience. Social value, personal value, and psychological value are some additional benefits that customers may receive.

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When your tire blows out in the middle of a drive, you should

Answers

You should tap the breaks repeatedly and pull over

get out of the car and change it

Taxes placed on imports to protect domestic producers from foreign competition and to produce revenue for the government are Blank______.Multiple choice question.embargoesincometariffsquotas

Answers

Taxes placed on imports to protect domestic producers from foreign competition and to produce revenue for the government are tariffs.

Tariffs are taxes imposed by using one us on goods or services imported from another United States of America. Price lists are alternate limitations that increase expenses and reduce available quantities of products and offerings for U.S. organizations and customers.

Common types of tariffs are given below.

Specific tariffs.Ad valorem tariffs.Licenses.Import quotas.Voluntary export restraints.Local content requirements.

A tariff is a tax imposed by using a government on items and services imported from other countries that serve to grow the fee and make imports much less perfect, or as a minimum much less competitive, as opposed to domestic items and offerings.

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Sandia Inc. Wants to acquire a $360,000 computer-controlled printing press. If owned, the press would be depreciated on a straight-line basis over 10 years to a book salvage value of $0. The actual cash salvage value is expected to be $25,000 at the end of 10 years. If purchased, Sandia will incur annual maintenance expenses of $3,000. These expenses would not be incurred if the press is leased. If the press is purchased, Sandia could borrow the needed funds at an annual pre-tax interest rate of 10%. The lease rate would be $48,000 per year, payable at the beginning of each year. If Sandia has an after-tax cost of capital of 12% and a marginal tax rate of 40%, what is the net advantage to leasing? a.$65,543 b.$57,173 c.$37,737 d.$60,713

Answers

Answer:

c.$37,737

Explanation:

Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]

PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322

PV of Cost of Buying = $262,434

Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))

PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)

PV of Cost of Leasing = $224,697

Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing

Net advantage to leasing = $262,434 - $224,697

Net advantage to leasing = $37,737

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Answer:

what do you need help with?? we dont see anything

Explanation:

Answer:

?

Explanation:

what is the differences and similarities between rental goods services and non goods services

Answers

Answer and Explanation:

Rented-Goods Services are represented by retailom where consumers can own a good, or use a service for a specified time. As an example of this, we can mention hotel rooms, ski clothes, cars, houses, among others.

Nongoods Services are also represented by retail, but it presents personal services, where consumers can try them, judge them and then decide if they want to own them.

_______ is a hybrid ADR in which both parties first submit to mediation for a set period of time (perhaps two business days). If the mediation fails, the process then moves to binding arbitration.

Answers

Discovery, Exculpatory

is a hybrid ADR in which both parties first submit to mediation for a set period of time (perhaps two business days). If the mediation fails, the process then moves to binding arbitration.

What is Hybrid ADR ?

A hybrid dispute resolution process combines two or more traditional dispute resolution processes into one.

The most common hybrid process is med-arb in which the same individual or dispute resolution forum acts first as a mediator and then if necessary, as an arbitrator.

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Using money as a medium of exchange is more efficient than barter because?

Answers

Explanation:

People are less likely to be cheated since the the object and money are often the same value, but with barter trade,an apple which may cost 5 dollars may be traded for a bag of rice which may cost 30 dollars

When a company targets several different market segments and creates a different marketing mix for each segment, they are using _______.

Answers

When a company targets several different market segments and creates a different marketing mix for each segment, they are using "multi-segment targeting".

What is multi-segment targeting?

A marketing tactic known as "multiple-segment specialisation" separates your target market into many groups made up of customers with comparable lifestyles and purchasing habits.

As a result, you might design advertisements that are specifically tailored to each demographic.

The multi segment target strategy is-

The company targets multiple market groups at once using a multi-segment targeting strategy, often known as a "differentiated marketing strategy," offering each segment unique advantages, a unique marketing mix, and unique marketing methods.Marketers frequently decide to concentrate on particular needs, such as convenience, affordability, quality, or individualized service. When businesses create a product that will be marketed to more than one sector, it is made to address a need that is present across all intended audiences.Some businesses will make rival items with various perceived benefits in order to develop a multi-segment targeting approach.

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Why would My future job be a flight attendant

Answers

Answer:

if you like to travel and be on planes and get that bag then be a flight attendant :) do what you want to!

Explanation:

​Lilliput's aggregate income in 2015 was ​$48,002,000,500. Suppose the population of Lilliput was 20,100,500 in 2015​, of which 16,086,000 people were employed. ​Therefore, Lilliput's income per capita in 2015 was ​$nothing. ​(Round your answer to two decimal places.​) Suppose the aggregate income of Lilliput was ​$6.5 billion in​ Q1:2016, ​$5.2 billion in​ Q2:2016, ​$5.4 billion in​ Q3:2016, and ​$5.9 billion in​ Q4:2016. Lilliput ▼ suffered didn't suffer from a recession in 2016. ​Lilliput's yearly unemployment rate for 2016 is likely to be ▼ greater thangreater than not significantly different fromnot significantly different from lesser thanlesser than the previous​ year's value.

Answers

Answer: See explanation

Explanation:

1. Lilliput's income per capita in 2015 will be calculated as:

= Income / Population

= $48,002,000,500 / 20,100,500

= $2388

2. Suppose the aggregate income of Lilliput was ​$6.5 billion in​ Q1:2016, ​$5.2 billion in​ Q2:2016, ​$5.4 billion in​ Q3:2016, and ​$5.9 billion in​ Q4:2016. We can say that Lilliput (suffered) from a recession in 2016. This is because there was a fall in the aggregate income from the first quarter which was $6.5 billion to $5.4 billion in the second quarter

3. Lilliput's yearly unemployment rate for 2016 is likely to be (greater than) the previous​ year's value.

Bond P is a premium bond with a 10 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have five years to maturity. What is the current yield for Bond P and Bond D

Answers

Let Bond par value be 1000

Bond P:

Coupon rate=10%

YTM=7%

time=9 years

Calculation of current price:

Particulars Year Amount PV Factor  YTM=7% Present value

Ineterest 1-9 years 100 6.515232 651.52

Value 9 1000 0.543934 543.93

       1195.45

Current price =1195.45

Current yield=Annual interest based on coupon rate*100/current price

The current yield of Bond P=100*100/1195.45=8.37%

Bond D:

Coupon rate=5%

YTM=7%

time=9 years

Calculation of current price:

Particulars Year Amount PV Factor  YTM=7% Present value

Interest 1-9 years 50 6.515232 325.76

Value 9 1000 0.543934 543.93

       869.69

Current price =869.69

Current yield=Annual interest based on coupon rate*100/current price

The current yield of Bond D=50*100/869.69=5.75%

Capital gains yield

current price bond P=1195.45

Next year's price bond P=100°5.971299+1000*0.582009=1179.14

The capital gain yield on bond P=(next year price-current price)/current price

                                       =(1179.14-1195.45)/1195.45

                                       =-1.36%

current price bond D=869.69

Next year's price bond D=505.971299+1000*0.582009=880.57

The capital gain yield on bond D=(next year price-current price)/current price

                                       =(880.57-869.69)/869.69

                                       =1.25%.

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Which type of rope is used as a belay line when there is a possibility that a victim or firefighter may fall a long distance while supported by the rope?

Answers

Dynamic Kernmantle rope is a type of rope is used as a belay line when there is a possibility that a victim or firefighter may fall a long distance while supported by the rope.

A firefighter is a person whose job is to stop fires from burning or we can say who fights destructive fires. The definition of a firefighter is a person who works at a fire department, either as a volunteer or by profession, who fights fires and rescues people .

firefighter also helps with hazardous materials, road traffic incidents, medical emergencies, floods, and even rescues cats in trees. Firefighters will respond to many different calls for service. Those calls may include structural fires, technical rescues, medical emergencies, and hazardous material spills.

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In the market for cell phones, if the supply of cell phones increases what will happen to the price and quantity of cell phones?.

Answers

If the supply of cell phones increases, the price of cell phones will reduce and the quantity of cell phones would increase.

What is the impact of an increase in the price of cell phones?

When the market of a good is in equilibrium and the supply for a good increases, the supply curve would shift to the right while the demand curve remains unchanged.

At the new equilibrium of the supply curve and the demand curve, price would be lower and quantity would be higher.

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Exploring the cost of transporting goods is part of which step in the screening process for potential markets and sites?

Answers

B) Step 2: Assess the national business environment is part of which step in the screening process for potential markets and sites.

The national environment of a business consists of economic, demographic, natural, cultural and political forces. The external environment of a company is often divided into an economic environment, a political and governmental environment, a sociocultural environment, and an international environment.

A state-owned enterprise is a company that operates within the borders of a particular country. Like local companies, state-owned companies understand the culture of the country and develop products and services to satisfy the market. For example, Donut Time is a donut shop that operates throughout Australia.

The question is incomplete. Please read below to find the missing content.

Exploring the cost of transporting goods is part of which step in the screening process for potential markets and sites?

A) Step 1: Identify basic appeal

B) Step 2: Assess the national business environment

C) Step 3: Measure market or site potential

D) Step 4: Select the market or site

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