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zavuch27 [327]
2 years ago
8

1. Which of the following is true about finding the present value of cash flows?

Business
1 answer:
Bogdan [553]2 years ago
4 0

Based on present value calculations, the following are true:

  1. A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
  2. B. The security that earns an interest rate of 6.00%.
  3. B. An investment that matures in five years.
  4. B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.

<h3>What is true of present value calculations?</h3>

Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.

The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.

Find out more on present value at brainly.com/question/15904086.

#SPJ1

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The yield to maturity on a bond is:
Arada [10]

Answer:

The correct answer is I, II and III.

Explanation:

The return that an investor earns with a bond can be calculated in different ways. The price of the bonds fluctuates with the change in interest rates, but once the investor buys a bond, the return is fixed. The yield to maturity is a way of providing the investor with the most accurate representation of the return he will receive for the holding of said bond.

Types of bond yield

Based on the current price, a bond shows three different types of maturity. The yield of the coupon is the interest rate paid by the bond at face value. A US $ 10,000 bond with a 6 percent interest coupon pays US $ 300 interest every 6 months. The current return is the coupon rate divided by the bonus price. If the bond with a nominal value of US $ 10,000 and a 6 percent coupon rate can be purchased for US $ 9,600, its current yield is 6.25 percent. The yield at maturity is the internal rate of return of the bond based on the time remaining for the bond's maturity.

Expiration Yield

The calculation of the yield at maturity amortizes the value of the premium or the discount (bonds over and under the pair) in the price of the bond throughout the life of the bond. For example, if the bond that pays 6 percent of the aforementioned coupon rate expires in 10 years, and is priced at US $ 9,600, the yield at maturity is 6,558 percent. If two bonds, one on the pair and one under the pair, have the same yield at maturity, any of them represents the same level of return for the investor. The yield at maturity is what the investor will receive if the bond is purchased at the current market price and held until maturity.

4 0
4 years ago
Does Caroline have any closed accounts? How long does a closed account stay on a persons credit report?
Elden [556K]
It stays on for seven years.
3 0
3 years ago
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Beats Electronics has been able to outperform Audio-Technica, Bose, JBL, Skullcandy, Sennheiser, and Sony in the high-end, premi
Tju [1.3M]

The main reason for the success of the Beats Electronics is: <u>B. it created a perception that owning its products was cool.</u>

<u>Explanation</u>:

Beats Electronics was able to outperform in the premium headphone market. They were able to out-stand from their competitive companies like JBL, Bose, Audio-Technica, Skullcandy and Sennheiser.

Beats Electronics made their customers to believe that owning their product is cool. They created a perception to the customers which made them to lead in the market.

Perception refers to the way the information is conveyed to others. Beat Electronics followed this strategy and made their customers to feel that owning their product is cool.

5 0
3 years ago
How can you fix the current finance decisions so that we are in a healthy cash position at the end of the year?
Anit [1.1K]

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

Given that we want us to be in a healthy cash position at the end of the year.

We are require to find the way how can we will be in a healthy cash position at the end of the year.

A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.

Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

Learn more about balance sheet at brainly.com/question/1113933

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7 0
1 year ago
Read 2 more answers
Name the 6 Holland Codes:
Serggg [28]

Answer:

the original were "motoric, intellectual, esthetic, supportive, persuasive, and conforming" but then later changed to "Realistic (Doers), Investigative (Thinkers), Artistic (Creators), Social (Helpers), Enterprising (Persuaders), and Conventional (Organizers)"

Explanation:

Because I am smart^-^

6 0
3 years ago
Read 2 more answers
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