Answer:
YTM = 4.40%
Explanation:
From current yield we solve for price:
current yield: annual payment/ price
0.07 = 1,000 x 8.5% / price
85 / 0.07 = price = 1214,285714285714 = 1214.29
Now we solve for yield to maturity. This is the rate at which the present value value of the maturity and coupon payment are equal to his current price:
C 42.50
time 12 (6 years x 2 payment per year)
rate (semiannual as the payment are twice per year)
PV coupon
Maturity 1,000.00
time 12.00
rate
PVmaturity
PV c + PV m = $1,214.2903
So we got:
From here we solve using excel or financial calculator as you suggest.
<u>notice this will give you the semiannual rate: 0.021988524 = 2.20%</u>
You will have to multiply the answer by 2 giving you the 4.40% as you were told.
Answer: The correct answer is choice C.
Explanation: If the fed is looking to increase the money supply there are a variety of ways for them to do this. Two of the ways are in choice c; the fed buys bonds and lowers the discount rate.
Buy purchasing bonds the federal government is putting money into the economy, increasing money supply. Lowering the discount rate also increases the money supply. When banks pay a lower interest rate they can in turn charge a lower interest rate to its customers, resulting in more customers borrowing money.
Answer:
Jeremy has to continue to save.
Explanation:
- Jeremy should keep saving his money.
- In case a situation arises, he needs to keep saving his resources and he needs the money for something else than he has got into trouble.
- Jeremy will adhere to his spending strategy to pay off his loan within 15 months.
- by follow these process he will continue his saving as well as repay the loan also .
Answer:
The gross profit method of inventory valuation is not valid when
c. the gross margin percentage changes significantly during the year.
Explanation:
Gross Profit Method:
It is such method that is used to determine the value of ending inventory in a specific period.
- The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
- The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.
<span>When you have distribution by equal sharing you have a much more likely scenrio where everbody is ok with things being shared.
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When you have distribution of goods by force this only leads to problems and possible conflicts as peopel don't like things being taken from them through force.
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