1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anastasy [175]
2 years ago
11

A bond that has a face value of $150 maturing in one year is available for purchase for $134 . What is the interest rate offered

on the bond
Business
1 answer:
Norma-Jean [14]2 years ago
8 0

The interest rate offered on the bond is 11.94%.

<h3>What is the interest rate on the bond?</h3>

The interest rate of the bond can be determined by calculating the yield to maturity of the bond. The yield to maturity is the interest rate that equates the price of the bond to the future value of the bond.

The yield to maturity can be determined using a financial calculator:

  • Cash flow in year 0 = $-134
  • Cash flow in year 1 = $150

YTM = 11.94%

To learn more about yield to maturity, please check: brainly.com/question/26376004

You might be interested in
You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond
drek231 [11]

Answer:

the yield to maturity of this bond is 5.7%

Explanation:

given data

pays interest annually C =  $64

face value F = $1,000

current market price P = $1,062.50

bond matures n = 30 years

solution

we get here yield to maturity that is express as

yield to maturity =

yield to maturity = [C+ (F-P) ÷ n] ÷ [(F+P) ÷ 2   ]     .................1

put here value and we get

yield to maturity = \frac{64+(1000-1062.50)}{11}  ÷ \frac{(1,000+1,062.50)}{2}

yield to maturity = 0.057

so that the yield to maturity of this bond is 5.7%

6 0
3 years ago
A service is any intangible offering that involves a deed is called
12345 [234]

Answer:

Service

Explanation:

A service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed by the service takers.

4 0
3 years ago
Read 2 more answers
How much time after selling a house do you have to buy a house to avoid the tax penalty?.
kati45 [8]

Answer:

no idea but im pretty sure its 6 months

Explanation:

becuase i think so

7 0
2 years ago
Read 2 more answers
Suppose that the BMW plant in Spartanburg, South Carolina, USA, produces $10 million worth of vehicles in a given year. Of this
ELEN [110]

Answer:

The answer is B. contributes to U.S. GDP, but not U.S. GNP

Explanation:

Gross Domestic Product (GDP) is the market value of all final goods and services produced within the economy of a country within a period of time.

Gross National Product(GNP) is the market value of all final goods and services produced by a citizen of a country irrespective of whether they are in the country or outside the country within a period of time.

The BMW plant in Spartanburg which produces $10million worth of vehicles is in USA but the company in owned by Germans. Since it is produced within the economy of USA, it will count for USA's GDP but it won't count for USA's GNP because it is not owned by USA citizen rather, it will count for Germany's GNP because it is owned by Germans.

3 0
3 years ago
Who influences the total output of the Egyptian economy?
shepuryov [24]

Answer:

Egyptian house holds yes

4 0
3 years ago
Other questions:
  • Recent technological advances have improved the productivity of labor and return on capital. These technological advances has re
    11·1 answer
  • Everyday fresh is a retail outlet that sells its products at a discounted rate. It expands its product base to a new division th
    9·1 answer
  • Why is accounting a service industry?
    13·2 answers
  • The _____ phase of the baldrige roadmap to performance excellence is characterized by action on the feedback, usually by incorpo
    5·1 answer
  • What document is used to make adjustments to an existing sales contract?
    10·1 answer
  • Government often handles large natural monopolies such as water and power companies by __________.
    5·2 answers
  • 1. All of the following would be classified as manufacturing overhead except the: A) wages of supervisor of the machining shop.
    7·1 answer
  • The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30. The bank statement, however, shows a
    7·1 answer
  • In an auction, potential buyers compete for a good by submitting bids. Adam Galinsky, a social psychologist at Northwestern Univ
    5·1 answer
  • Which action is an example of a consumer making a purchase through a direct marketing arrangement?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!