Answer:
Explanation:
Par value =1000
Coupon rate = 5.7
Semiannual coupon payment= Par value*coupon rate/ 2 =1000*0.057/2=$28.5
Par value or FV=1000
Semiannual coupon payment(PMT) = 28.5
Years to maturity=22*2=44 semiannual
Annual yield to maturity=6.5
Semiannual yield to maturity = 3.25
For calculation, the formula attached will be used:
Price=28.5*(1-1/(1+0.0325)^44/0.0325)+1000/(1+0.0325)^44 =
= 28.5* ((1-0.2448)/0.0325) + 1000/4.0847= (28.5*23.2364) + 244.81 = $907.05
So, the bond is trading at dsicount because the current price (907.05) is below the face value
Answer: $8.81
Explanation:
To solve this, add the present values of the dividends from years 3, 4 and 5 and then add the present value of the terminal value of the stock at year 5.
Year 3 dividend = $0.50
Year 4 dividend = 0.50 * (1 + 49%) = $0.745
Year 5 dividend = 0.745 * 1.49 = $1.11005
= Dividend in year 3 / (1 + required rate of return)³ + Dividend in year 4 / (1 + required rate of return)⁴ + Dividend in year 5 / (1 + required rate of return)⁵ + (Dividend in year 5 * (1 + growth rate) / ( required rate of return - growth rate ) ) / (1 + required rate of return)⁵
= 0.5 / 1.16³ + 0.745/1.16⁴ + 1.11005/1.16⁵ + ( 1.11005 / (16% - 9%)) / 1.16⁵
= $8.81
Answer:
They receive goods or services from someone within the organization.
Explanation:
Internal customers works within an organisation to carry out their transaction
Answer and Explanation:
Risk and return are equal companions if we invest in a market with a higher risk that's mean this type of market provides a higher return.
If Investors invest their whole money in the high-risk market for there high return, may they get a huge loss.
So, The exposure must be balanced by investments in diversified markets with different risk weights.
If in planning her retirement liza deposits some money at 3% interest, with twice as much deposited at 4.5%. The amount deposited at each of the total annual interest is: $14,000 is invested at 4% and $28,000 is invested at 4.5%.
<h3>Amount deposited</h3>
Let x represent amount deposited at 3%
Let 2x represent the amount deposited at 4.5%
Hence:
.03x + .045(2x) = $1680
.12x = $1680
Divide both side by .12x
x=$1680/.12
x = $14,000 at 3%
So,
2x= $14,000
x=2×14,000
x=$28,000 at 4.5%
Therefore the amount deposited at each of the total annual interest is: $14,000 is invested at 4% and $28,000 is invested at 4.5%.
Learn more about the amount deposited here:
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