Organizational Behavior
OER 2019 Edition
ISBN: 9781947172715
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 8.2, Problem 2CC
What are MBOs, and how do they relate to performance appraisals?
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An insurance company has liabilities of £7 million due in 10 years' time and
£9 million due in 17 years' time.
The assets of the company consist of two zero-coupon bonds, one paying
£X million in 7 years' time and the other paying £Y million in 20 years' time.
The current interest rate is 6% per annum effective.
Find the nominal value of X (i.e. the amount, IN MILLIONS, that bond X pays
in 7 year's time) such that the first two conditions for Redington's theory of
immunisation are satisfied.
Express your answer to THREE DECIMAL PLACES.
An individual is investing in a market where spot rates and forward rates
apply.
In this market, if at time t=0 he agrees to invest £5.3 for two years, he will
receive £7.4 at time t=2 years. Alternatively, if at time t=0 he agrees to invest
£5.3 at time t=1 for either one year or two years, he will receive £7.5 or £7.3
at times t=2 and t=3, respectively.
Calculate the price per £5,000 nominal that the individual should pay for a
fixed-interest bond bearing annual interest of 6.6% and is redeemable after 3
years at 110%. State your answer at 2 decimal places.
The one-year forward rates of interest, f+, are given by:
.
fo
= 5.06%,
f₁ = 6.38%, and
f2
= 5.73%.
Calculate, to 4 decimal places (in percentages), the three-year par yield.
Chapter 8 Solutions
Organizational Behavior
Ch. 8.1 - What are performance appraisals, and how are they...Ch. 8.1 - How are performance appraisals used as a reward...Ch. 8.2 - What are the techniques and scales used in...Ch. 8.2 - What are MBOs, and how do they relate to...Ch. 8.2 - What are assessment centers?Ch. 8.3 - What types of feedback do performance appraisals...Ch. 8.4 - What is the best appraisal system for...Ch. 8.4 - How are rewards tied to performance appraisals?Ch. 8.5 - What are the differences between individual and...Ch. 8.5 - What is the variety of reward incentives available...
Ch. 8 - Identify the various functions of performance...Ch. 8 - What are some problems associated with performance...Ch. 8 - Define validity and reliability. Why are these two...Ch. 8 - How can errors in appraisals be reduced?Ch. 8 - Critically evaluate the advantages and...Ch. 8 - Discuss the role of feedback in employee...Ch. 8 - What is the difference between intrinsic and...Ch. 8 - Identify the major bases of reward distribution.Ch. 8 - How does money influence employee motivation?Ch. 8 - Discuss the relative merits of individual and...Ch. 8 - Describe the benefits and drawbacks of several of...Ch. 8 - How does HubSpots focus on culture affect employee...Ch. 8 - What concerns would you have regarding giving...
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