Use the following information to answer questions 24 – 26. Use 3 decimals. A municipal bond...
2. A municipal bond services has three rating categories (A,B,C). Suppose that in the past year, of the municipal bonds issues throughout the United States, 70% were rated A, 20% were rated B, and 10% were rated C. Of the municipal bonds rated A, 50% were issued by cities,40% by suburbs, and 10% by rural areas. Of the municipal bonds rated B, 60% were issued by cities, 20% by suburbs, and 20% by rural areas. Of the municipal bonds rated...
A municipal bond service has three rating categories (A, B, and C). Suppose that in the past year, of the municipal bonds issued throughout the United States, 70% were rated A, 20% were rated B, and 10% were rated C. • Of the municipal bonds rated A, 50% were issued by cities, 40% were issues by suburbs, and 10% were issued by rural areas. • OF the municipal bonds rated B, 60% were issued by cities, 20% were issued by...
Use the following information to answer questions 54-59: Pizza Pier issues 7%, 10-year bonds with a face amount of $80,000 on January 1, 2018. Interest is paid semiannually on June 30 and December 31. Round amounts to the nearest whole dollar. 54. Record the bond issue if the market interest rate for bonds of similar risk and maturity is 8%, and they were issued for $74,564 on January 1, 2018. 55. Record the first interest payment on June 30, 2018...
You may need to use the appropriate appendix table or technology to answer this question. DATAfile: ResidentialWater On its municipal website, the city of Tulsa states that the rate it charges per 5 CCF of residential water is $21.62. How do the residential water rates of other U.S. public utilities compare to Tulsa's rate? The data shown below ($) contains the rate per 5 CCF of residential water for 42 randomly selected U.S. cities. 10.48 9.18 11.8 6.5 12.42 14.53...
You may need to use the appropriate appendix table or technology to answer this question. DATAfile: ResidentialWater On its municipal website, the city of Tulsa states that the rate it charges per 5 CCF of residential water is $21.62. How do the residential water rates of other U.S. public utilities compare to Tulsa's rate? The data shown below (s) contains the rate per 5 CCF of residential water for 42 randomly selected U.S. cities. 10.48 9.18 11.8 6.5 12.42 14.53...
Forbes reports that women trust recommendations from Pinterest gender? The following sample data shew the number of women and men who stated in a recent semple that they trust recommendations more than recommendations from any other social network platform (Forbes website, April 10, 2012 ). But, does trust in Pinterest difter by recommendations made on Pinterest Men 170 Trust Recommendations Made on Pinterest 117102 Women 150 Sample a. What is the point s the point estimate of the proportion of...
Use the information on bond yields for September 2016 and September 2017 to answer the following questions. YOU MUST SHOW YOUR WORK 1-Year Bond Yields (%) Sept 2016 and 2017 2016 2017 US Treasury 0.68% 1.36% Corporate AAA 0.73 1.49 Corporate AA 1.22 1.62 Corporate A 1.42 1.82 Corporate BBB 2.15 1.85 Municipal AAA 0.75 1.09 Municipal AA 0.88 1.23 Municipal A 0.99 1.28 US Treasury Yield Curve 1 Mo 3 Mo 6 Mo 1...
Answer the next 3 questions based on the following information: Assume that3-month Treasury bill are yielding 1.4%, 10-year Treasury bonds are yielding 2.8%, an Aaa-rated 10-year corporate bond is 5%, and real risk-free rate is 1%. 18) What is the inflation risk premium for 3-month Treasury b ill? (Hint: the inte rest rate of 3-month Treasury bill is a proxy for risk-free rate) A) 1.8% B) 1.4% C) 1% D) 0.4% 19) What is the maturity risk premium for 10-year...
Instructions: For the following questions, use the diagram of production possibilities for the United States a. Which point, A or B, best represents the combination of present and future goods in the United States? (Click to select) b. W ook int hich production possibilities curve best represents future growth in the United States? (Click to select) Instructions: For the following questions, use the diagram of production possibilities in China. c. Which point, A or B, best represents the combination of...
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PROBLEM 1 USE ANY METHOD СІ Your company currently has $ 1 000 par. 6.75 % coupon bonds with 10 years to maturity and a price of $ e new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. You need to set a coupon rate of %. (Round to two decimal...