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vivado [14]
2 years ago
9

What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 6% fixed interes

t for the duration of the bond?
Mathematics
1 answer:
KengaRu [80]2 years ago
3 0

For a $1000 face value purchased at a discount price of $925, if it pays 6% fixed interest for the duration of the bond is the yield on a corporate bond mathematically given as

Yield = 6.5%

<h3>What is the yield on a corporate bond?</h3>

Generally, the equation for the interest paid is mathematically given as

Interest paid = value of bond x Interest rate

Interest paid = 1000 * 6%

Interest paid = 60

Therefore

Yield = Interest paid / Price paid

Yield = (60 / 925)x 100

Yield = 6.5%

In conclusion, the yield on a corporate bond is
Yield = 6.5%

Read more about Percentage

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Suppose 52% of the population has a college degree. If a random sample of size 563563 is selected, what is the probability that
amm1812

Answer:

The value is  P(| \^ p -  p| < 0.05 ) = 0.9822

Step-by-step explanation:

From the question we are told that

    The population proportion is  p =  0.52

     The sample size is  n  =  563      

Generally the population mean of the sampling distribution is mathematically  represented as

           \mu_{x} =  p =  0.52

Generally the standard deviation of the sampling distribution is mathematically  evaluated as

       \sigma  =  \sqrt{\frac{ p(1- p)}{n} }

=>      \sigma  =  \sqrt{\frac{ 0.52 (1- 0.52 )}{563} }

=>      \sigma  =   0.02106

Generally the  probability that the proportion of persons with a college degree will differ from the population proportion by less than 5% is mathematically represented as

            P(| \^ p -  p| < 0.05 ) =  P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 ))

  Here  \^ p is the sample proportion  of persons with a college degree.

So

 P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 )) = P(\frac{[[0.05 -0.52]]- 0.52}{0.02106} < \frac{[\^p - p] - p}{\sigma }  < \frac{[[0.05 -0.52]] + 0.52}{0.02106} )

Here  

    \frac{[\^p - p] - p}{\sigma }  = Z (The\ standardized \  value \  of\  (\^ p - p))

=> P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 )) = P[\frac{-0.47 - 0.52}{0.02106 }  <  Z  < \frac{-0.47 + 0.52}{0.02106 }]

=> P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 )) = P[ -2.37 <  Z  < 2.37 ]

=>  P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 )) = P(Z <  2.37 ) - P(Z < -2.37 )

From the z-table  the probability of  (Z <  2.37 ) and  (Z < -2.37 ) is

  P(Z <  2.37 ) = 0.9911

and

  P(Z <  - 2.37 ) = 0.0089

So

=>P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 )) =0.9911-0.0089

=>P( - (0.05 - 0.52 ) <  \^ p <  (0.05 + 0.52 )) = 0.9822

=> P(| \^ p -  p| < 0.05 ) = 0.9822

3 0
4 years ago
You spend 1/5 of your income on car payment. You spend 3/8 of the remainder of your income on rent. What fraction of income is s
kenny6666 [7]

Answer:

3/10

Step-by-step explanation:

1/5 of <u>total</u> income - spent on car

<u>remainder</u><u> </u> income = 4/5

3/8 of <u>remainder</u><u> </u>= 3/8 ×4/5 = 3/10(of total income spent on rent)

the word "<u>of</u>" means you can find it by multiplication

e.g. 2 of 1/2 means 2 × 1/2 which is 1

5 0
3 years ago
Ben believe the orioles will win only 40% of their games this year if they play 160 games how many games does Ben predict they w
aleksandr82 [10.1K]

The number of games Ben predict Orioles will win this year is 64 games

<h3>How to find percentage?</h3>

  • Percentage of games Ben believe the orioles will win = 40%
  • Number of games Orioles played = 160

Number of games Ben predict they will win = 40% of 160

= 40/100 × 160

= 0.4 × 160

= 64

Therefore, the total number of games Ben predict they will win is 64 games

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6 0
2 years ago
Solve for x x/8−9=1<br><br>x= ​
Airida [17]

Answer:

x = 80

Step-by-step explanation:

9+1=10 so x/8 must equal 10.

80/8 = 10 and subract by 9 = 1

7 0
3 years ago
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Simplify each complex fraction <br>3/4/2/3​
Archy [21]

Answer:

Step-by-step explanation:

1  1/8

7 0
3 years ago
Read 2 more answers
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