b)A company has issued five-year bonds with the annual coupon and the repayment of principal linked to an index of inflation. The coupon rate is 4.75% and the principal is £100. The index of inflation is currently set at 100. Assume annual inflation rates for the next five years in the table below.

Inflation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
0.88% 1.47% 2.68% 3.28% 4.50%

Calculate the level of the inflation index for each year and use it to determine the coupon payment per bond for each of the five years. In addition, calculate the amount that the company pays bondholders when the debt matures after five years. Your mathematical workings should be clearly outlined in your written presentation.

Answers

Answer 1

Answer:Inflation-linked bonds are a way to protect your investment's principal amount from being eroded by the forces of inflation. Inflation refers to the general ...

Explanation:


Related Questions

Easy points

What are two of the most popular games of their genre like for example ( battle royale, Gacha, puzzle you catch my drift)? Also, list their sales il do one for you Gacha do the rest pls :)

Answers

Fortnight

Explanation:

It's just the best game, no explanation is needed.

it won't let me post this if i dont spell the game right

Im trying to say something and it says is is something bad but I’m not even doing nothing wrong

If you lived in Japan, which city would you most like to visit to get the best buys for your
money?

Answers

Answer:

A big apartment

Explanation:

not too roomy and not too expensive

Describe the nature of a manufacturing businesses

Answers

Answer:

manufacturing business is any business that uses components, parts or raw materials to make a finished good. These finished goods can be sold directly to consumers or to other manufacturing businesses that use them for making a different product.

Explain all the reasons why a decrease in the price of a product would lead to an increase in purchases of the product?

Answers

Since it is cheaper many people would want to buy this product and it would make the company more money and more sails

Your order is supposed to be
delivered between 5PM-
6PM. It's now 5:45PM and
you know you will be late
delivering the order. What
would you text the customer?

Answers

Answer:

ok first of all- nor sure what kinda question that is but something like "sorry I might be a little late due to traffic" or something like that

Explanation:

there is no explanation

What's the present value, when interest rates are 8.0 percent, of a $130 payment made every year forever?

Answers

Answer:

help me with that as I try urs

An increase in bond prices is usually accompanied by
Part 2
A.
an increase in the opportunity cost of holding money.
B.
a decrease in the quantity demanded of money.
C.
an increase in the quantity demanded of money.
D.
an increase in interest rates.

Answers

Answer:

C. an increase in the quantity demanded of money

After an account has been written off using the direct write-off method, it will not be collected. True or False

Answers

Answer:

The awsner is true to that.

To be a high-performance team, a team:
A) needs to practice good communication
B) needs to give appropriate feedback to each other
C) should contain members with a variety of skills
D)must have a great leader
E) is accurately described by all of these

Answers

E it’s e I know because just trust me

To be a high-performance team, a team should practice good communication along with proper feedback and be a great leader. Thus the correct option is E.

What is Team?

When a group of people is structured and officially come together to achive a common objective by playing individual roles it is considered as a team.

A team is said to be high-performance when there is good communication established between them which helps them to exchange ideas, share views, and to resolve conflicts.

Good communication helps them to engage effectively and receive feedback from team members which helps them in bringing improvement and achieving growth.

A team should have a good leader who helps to provide appropriate direction and guidance whenever it is needed and encourage team members to gain skills.

Therefore, option E is appropriate.

Learn more about Team, here:

https://brainly.com/question/15085199

#SPJ2

PLEASE HELP!!!! WILL GIVE BRAINLIEST!!!





Is the second one correct (the answer I chose is in blue)

Answers

Yes you are correct that answer is right

Steeler Corporation is planning to sell 100,000 units for $2.00 per unit and will break even at this level of sales. Fixed expenses will be $75,000. What are the company's variable expenses per unit? Group of answer choices $1.00 $1.10 $1.25 $0.75

Answers

The company's variable expenses per unit is 1.25

What is breakeven?

Breakeven is a point at which neither profit nor loss is made. It is used to determine the number of units or dollars of revenue needed to cover total costs.

Number of units to sell = 100,000

Price per unit = 2

Fixed expense = 75000

At break even point :

Revenue = total expenses

Total expenses

= fixed cost + variable cost

Let variable cost = x

Revenue

= units to sell * price per unit

Revenue

= 100,000 * 2

= 200,000

Hence,

Fixed cost + variable cost = Revenue

75000 + x = 200,000

x = 200, 000 - 75000

x = 125,000

Variable cost = 125,000

The variable expense per unit is thus :

Variable expense / number of units

= 125,000 / 100,000

= 1.25 per unit

Hence, the company's variable expenses per unit is 1.25

Learn more about break even here: https://brainly.com/question/9212451

In a traditional economy, which group is most responsible for producing the
goods people in society need?
A. Government agencies
B. Family members
C. Private businesses
D. International corporations

Answers

the answer is B. Family Members

what economic system does Zambia use?​

Answers

Answer:

Zambia has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation.

Explanation:

Which of the following matches the appropriate customer strategy with the customer’s strategic importance?

a. "A" Customer; Service Strategy
b. "B" Customer; Satisfaction Strategy
c. "C" Customer; Satisfaction Strategy
d. "A" Customer; Satisfaction Success
e. "B" Customer; Success Strategy
f. "C" Customer; Success Strategy

Answers

The statement that matches  the appropriate customer strategy with the customer’s strategic importance is: "B" Customer; Satisfaction Strategy.

What is customer strategy?

Customer strategy can be defined as the process of planning so as to achieve a set goals and objectives a company has for their target customers.

Customer satisfaction strategy is important as it enables companies or organization to satisfy their customers  based on the review or feedback they get  from their customers.

Inconclusion the statement that matches  the appropriate customer strategy with the customer’s strategic importance is: "B" Customer; Satisfaction Strategy.

Learn more about Customer strategy here:https://brainly.com/question/24553900

XYZ stock price and dividend history are as follows:

Year Beginning-of-Year Price Dividend Paid at Year-End
2018 $118 $3
2019 126 3
2020 110 3
2021 115 3

An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021.

Required:
a. What are the arithmetic and geometric average time-weighted rates of return for the investor?
b. What is the dollar-weighted rate of return?

Answers

This answer was deleted by a Brainly Staff Member for violating our Terms of Service.

Give a brief description of the career describe in the interview

Answers

Answer:

The description of yourself focuses on your professional and vocational history. Training and work experience are the two essential parts.

Explanation:

In any case, it's insufficient to say to the employing chief, that you procured a professional education or that you have past professional training.

For instance, school graduates may specify how required degree program temporary jobs were instrumental in acquiring both important work insight and industry information.

Prepared specialists may momentarily specify hands on grants, achievements and abilities procured throughout the long term, as selling focuses in the prospective employee meeting.

The most compensating part of my work is fostering my abilities and assisting with cultivating the development of my group. Notwithstanding the course you take in a vocation in bookkeeping, you will end up working with others

What do customers do after making a purchase?

Answers

They use the product also they can make a review on that product they used.

Which of the following is NOT an advantage of paying bills online?


A. The ability to pay bills while away from home on vacation.
B. You will only receive a record of your payment if you pay bills online.
C. If you pay a fee for every check you write, you save on bank fees.
D. You save the cost of postage associated with mailing checks.

Answers

Answer: you will only receive a record of your payment if you pay bills online

Explanation:

what does business mean​

Answers

It’s like Elon musks company Tesla or space ex those are businesses same as McDonald’s and stuff like that

Answer:

business is a kind of saling introducing the product of any country and another nations who like to buy and approve the product.

How much is 1/2% of $10.00?

Answers

Answer:

I think it's 0.5 which is half of 10.00.

Explanation:

A customer calls to order a gift for their oldest child's 8th
birthday. He mentions that all of his children have
birthdays in the same month. What do you do?

Answers

Answer:

suggest that he continues to buy from your company?

Explanation:

Many people who do not smoke cigars are bothered by the odor of cigar smoke. If private contracting is impossible, will too many or too few cigars be produced and consumed? Taking all costs into account, is the market price of cigars too high or too low?

Answers

If private contracting is impossible, too many cigars would be produced and consumed. The market price of cigars is too low.

What is negative externality?

Negative externality is when the production or consumption activities of economic agents negatively affects third parties not involved in production or consumption.

For example, smoking a cigar affects others that are not smoking that are around the person that is smoking. Negative externality occurs because the cost of production or consumption is too low.

To learn more about externalities, please check: https://brainly.com/question/26266710

In consonance with the IAS1 which talks about the presentation on Financial Statements, elucidate on the relevance of the cash flow statement to an institution, and as a requisite Financial statements?​

Answers

Explanation:

I don't think I have to go to a doctor and have a baby in the morning and my mom will be there

Which three research options are examples of credible resources that give business writers accurate information?
discussion boards on a university website
social media posts made by a university professor
ООООО
websites owned by commercial organizations
digital archives of US government agencies
websites that belong to nonprofit organizations

Answers

Because they have undergone peer review, scholarly journals, conference papers, and books are the most frequently used reputable sources. There are, however, reliable websites that can be used.

What do you mean by scholarly journals?

Faculty at the university level frequently demand or strongly advise using articles from scholarly publications, also known as peer-reviewed, academic, refereed, or professional journals, for use in producing research papers and projects.

This is crucial for high-caliber graduate work and is especially true for upper level courses. Scholarly journals can be identified by various features that set them apart from other periodicals: to disseminate the findings of recent research in the journal's area of study.

Scholarly publications demonstrate a methodical and in-depth investigation of a certain subject, frequently involving experiments or surveys.

Review papers that summarize the present state of knowledge on a subject may occasionally be published in scholarly publications.The advertisements, vibrant graphics, and photos that can be seen in popular periodicals are absent from scholarly journals.

Learn more about scholarly journals, here

https://brainly.com/question/12925308

#SPJ1

Aliya is a line supervisor in a denim apparel factory. Aliya has set a(n) ________ to reduce the time she spends training new workers. Multiple Choice

Answers

It should be noted that an operational goal has been set to reduce the time she spends training new workers.

What is training?

It should be noted that training is important in order to improve the skills of workers in organizations.

Since Aliya is a line supervisor in a denim apparel factory, she has set an operational goal to reduce the time she spends training new workers

Learn more about training on:

https://brainly.com/question/14591988

g Roper's Rice earns $7 million per year as a monopolist in the packaged rice industry. If a new firm enters, profits earned by Roper's Rice fall to $3 million. If Roper's Rice increases output, the new firm does not enter and Roper's Rice earns profits of $5 million. Should Roper's Rice engage in limit pricing if the interest rate is 8%

Answers

Answer:

yes

Explanation:

The present value of benefits exceeds the up-front costs.

On July 1 of the current calendar year, Olive Company paid $8,200 cash for management services to be performed over a two-year period beginning July 1. The adjusting entry on December 31 of the current year for Olive would include:

Answers

Based on the amount paid by Olive Company for the two year period, the adjusting entry on December 31 would be a debit to an expense and a credit to prepaid expense for $2,050.

What would be the adjusting entry?

Based on the accrual method, only costs for the year can be recorded as expenses.

If any costs are for other periods, those costs would be credited to prepaid expenses.

The expense for this year for management services would be:

= Number of months from July to December x Amount paid / number of months in contract

= 6 months x 8,200 / 24 months

= $2,050

In conclusion, expenses will be debited $2,050.

Find out more on prepaid expenses at https://brainly.com/question/9270086.

Explain the purpose, format and structure of business letters?​

Answers

Answer:

The most common forms of business are sole proprietorship, partnership, corporation and S corporation.

At a sales volume of 30,000 units, Carne Company's total fixed costs are $30,000 and total variable
costs are $45,000. The relevant range is 20,000 to 40,000 units.

Answers

Answer:

$2.25

Explanation:

sale volume of company = 30,000 unit

total fixed cost are = $30,000

total variable cost $45,000 for 30,000 unit

1 unit = 45000/30000 = $ 1 . 5

for the sale of 40,000 unit

the total expected cost

= Fixed cost + Variable cost

= $30,000 + 40,000×$1.50

= $30,000+$60,000

= $90,000

Cost per unit:

= $90,000/40,000

= $2.25

why is it important to do research to locate appropriate work or study and funding opportunities from various sources (inclusing online)before making the final decision ​

Answers

It is very important to  do research to known the level of work or study and funding opportunities from various sources before making the final decision ​ due to the fact that when you don't know the above and you start your research, when you encounter problem halfway such as lack of funds, it may lead to one abandoning the project completely.

Why do one need research funding?

Research funding is known to be a key part of conducting any form of research.

Conclusively,  For one to be able to have a research grant is said to be a matter of name for a researcher and it also helps in the growth of one's career.

Learn more about funds from

https://brainly.com/question/25887038

Other Questions
A centrifuge rotates so that 0. 25 m from the center is traveling at 343 m/s (the speed of sound). How many RPM is this? What is its angular velocity? Which sentence from the passage in include a metaphor used by the author to describe Belle? Select one: a. "On a cloudless night like this one, she was a sight like no other sight in the whole city" b. "I'd drawn Belle in the high-noon light, at sunset, on snowy days, and on foggy twilight mornings." C. "Now Belle was a powerful giant who carried all kinds of people to all kinds of places, day after day." d. "I was taken with what I'd come to call Brooklyn Belle." help me with this please! Alana drew diagrams to show how particles in a spoon move before and after the spoon is placed in hot liquid. At left a grid labeled Before of regularly arranged orange balls with large movement lines near each. At right a grid labeled After of regularly arranged orange balls with small movement lines near each. Which best explains how to correct Alanas error? Make the particles in both diagrams larger. Show more movement in the ""Before"" diagram. Add more particles to the ""After"" diagram. Switch the labels on the diagrams. Which is another way to write 7 multiply 7 multiply 7 multiply 7? Discuss new concepts that you have learned about Cisco Devices and how they will be helpful in the workplace. . In this time of pandemic, achieving academic success is possible, whats 348.69 simplified In a Linux machine, you have a file named "types_of_fish.txt" and you want to append the word "trout" to the file contents. Which of the following commands can you use? A. echo trout < types_of_fish.txtB. echo trout > types_of_fish.txtC. echo trout >> types_of_fish.txtD. echo trout 2> types_of_fish.txt Anthropologists generally agree that the foundations of human society and the beginnings of culture can be traced back to the advent of: If two types of matter are combined and energy is given off, what type of change is likely to have occurred?chemical changephysical changeparticle changeshape change Write the inequality:Two less than twice a number is less than a half. When the first-grade boys wrestle and hit each other as they are in line for lunch, they are engaging in _____ play A) prove that the electric field of the point charge is radial by comparing your values in column 5 (position angle) and in column 7 (electric field angle). Explain. How long does it take for biodegradable plastic to decompose. Marshall directed America's involvement in World War II. After the war, however, he spearheaded the campaign to rebuild Europe. How can you explain this seeming contradiction? I need help please help me !!!! Read this assignment. Plan a speech in which you propose to your student government officers that your school establish a peer tutoring program. What would be an effective claim for this assignment? Peer tutoring programs can be held during after-school hours in the school library or cafeteria. Other after-school clubs include Spanish Club, Volunteer Corps, and the Student Booster Association. The current tutoring program is sponsored by the guidance department, and all tutors are adults. Peer-led tutoring would offer both volunteer opportunities and valuable academic assistance. Find the "natural" equilibrium concentration of NO in air in units of molecules/cm3 . Question 5 of 10Which of the following requires a passing grade in the class to earn collegecredit?A. A dual enrollment courseB. The ACTC. An AP courseOD. A traditional courseSUBMITanswer A