Both Bond A and Bond B have 8.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while Bond B has 18 years to maturity. a. If interest rates suddenly rise by 1.4 percent, what is the percentage change in price of Bond A and Bond B? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) %A in Price Bond A % Bond B % b. If interest rates suddenly fall by 1.4 percent instead, the percentage change in price of Bond A and Bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) hat would be %A in Price Bond A Bond B %

Q: C, F, and G. Thank you!

A: Working capital: The working capital formula tells us the short-term liquid assets remaining after…

Q: E12.10 (b)

A: Total issued and outstanding shares = 95000+25000+2000 = 122,000 shares Dividend declared on dec. 15…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts    1. Cash Account Particular Debit Particular Credit         To capital A/c…

Q: section 1231 summary

A: Tax is the liability which has to be paid by the individual and the corporation to the Federal…

Q: Can you also complete part 2 and part 3? Also, 50*e^(.04*.5)=51.01 not 51.99

A: Part 2:   Expected stock price in 6 months: = 0.6 x $50 x 1.20 + 0.4 x $50 x 0.90 = $57   Expected…

Q: 88 MULTIPLE CHOICE Question 7 Listen What is the inverse of the one-to-one function? A f¹(x) = x-5 3…

A: Step 1: SolutionGiven function: f(x)=3x+5We have to find what is the inverse of the one-to-one…

Q: E15.11

A: As posted multiple sub parts questions we are answering only first three sub parts kindly repost the…

Q: In 100 words or fewer, explain the difference between NPV and IRR.

A: Net present value of an investment is the difference between the present value of cash inflows and…

Q: 321,818 is incorrect. What is the correct answer?

A: Revenue: We consider unit sales and price per unit to determine total revenue.Variable Costs: Based…

Q: 31.25 25.0

A: EPS=Earnings per share =0.36+0.42+0.39+0.43=1.60 Price Of shares =P P/E=Price/EPS

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: How do I do PR 20-3a

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Evaluate the following, accu $100(1+0.11 × ½)

A: Principal Amount = p = $100Interest Rate = r = 11%Time = t = 5/12

Q: Explanation 1031 like-kind exchange

A:

Q: nkkkk

A: We can decide upon the better choice of loan by computing the future value of both the loans. Lower…

Q: The answer is somewhat close. The right answer is 1.5337 Please clarify

A: Stock price is $50 Strike price is $52 Risk free rate is 1% Time period is 3 months To Find: Value…

Q: 17. What are the key features of ERISA?

A: The Employee Retirement Income Security Act of 1974 (ERISA) is a federal statute that provides basic…

Q: What is the next number in the following sequence?    3        8        15        24        35…

A: The objective of this question is to identify the pattern in the given sequence of numbers and…

Q: 1,525,394 is the wrong answer. what is the correct one?

A: The recovery of net working capital (NWC) refers to the return of funds initially tied to current…

Q: » 24 Which of the following transactions would be recorded in the general journal?

A: 24. The following transactions would be recorded in the general journal are given below:…

Q: Question 6 Listen Which of the following sets represent an intersection, union, subset, and com-…

A: From the Venn diagram :A contains: {2,3,5,7}B contains: {2,4,6,8,10}The universal set S contains:…

Q: two questions

A: Prepare an income statement.

Q: what is 10x12

A: Basic maths of multiplication, It means the summation of 10, 12 times.

Q: 30. Assume Hanlein Corporation declared and paid all cash dividends in 2013, determine the cash…

A: Hence correct option is A    Increase Retained Earning in Dec 31 , 2013 = 123400-94000 =$29400 Net…

Q: what is 2 plus eight ?

A: The given sentence "2 plus eight" can be symbolically represented as 2+8. Thus, 2+8 is 10.

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.