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Nady [450]
1 year ago
14

ABC Bonds are currently priced at $1050 with 8 years until maturity. If the coupon is 6% and the bond pays interest semi-annuall

y, what is the yield to maturity for an investor that purchases the bond today
Business
1 answer:
ohaa [14]1 year ago
4 0

$1,000 is the yield to maturity for an investor that purchases the bond today

<h3>What is bond ?</h3>

A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.

Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.

To know more about bond  follow the link:

brainly.com/question/25965295

#SPJ4

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The Up and Coming Corporation's common stock has a beta of 0.9. If the risk-free rate is 4 percent and the expected return on th
Mashutka [201]

Answer:

r = 0.139 or 13.9%

Option e is the correct answer

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the market return

r = 0.04 + 0.9 * (0.15 - 0.04)

r = 0.139 or 13.9%

8 0
3 years ago
Indicate your potential market​
fenix001 [56]
Your potential market includes the demographic groups that are not currently your customers but could become customers in the future.
5 0
3 years ago
Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to
Fantom [35]

Answer:

$0.36

Explanation:

Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)

p1 = probability of winning $1 = 1/5 = 0.2

a1 = $1

p2 =  probability of winning $5 = 1/100 = 0.01

a2 = $5

p3 =  probability of winning $1000 = 1/100,000 = 0.00001

a3 = $1000

p4 =  probability of winning $1 million = 1/10,000,000 = 0.0000001

a4 = $1 million

(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36

4 0
3 years ago
Granite Inc. is a reputable company that has contributed a lot toward the social welfare of the people. It has also improved wor
Mnenie [13.5K]

Answer: Corporate responsibility report.

                       

Explanation: In simple words, it refers to the written document that is issued by the organisations with the intent of sharing the actions that they have taken to fulfill their corporate social responsibility.

The organisation have legal bounding to work for the betterment of society and also it increases the positive image of that organisation in the eyes of customers.

Hence this report is published by the organisations for fulfilling these objectives,.

7 0
3 years ago
Suppose an apartment complex converts to a condominium, so that the former renters are now owners of their housing units. Suppos
Lorico [155]

Answer:

GDP is likely to remain same as a result of this conversion.

Explanation:

GDP is the total value of goods & services, produced by an economy, during a given year.

It can be calculated by 2 methods

  • By Expenditure method : GDP = Private Final Capital Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
  • By Income method : NDP = Compensation of Employees + Operating Surplus (Rent + Profit + Income) + Mixed Income

Given case - Converting a rented apartment into a resident owned condominium , with value of housing services = rent formerly paid :

This brings no change in the GDP, as : The apartment 'rent' previously paid was included in 'operating surplus' of national income, by Income method. And, the equal condominium value is now included in investment addition i.e 'Gross domestic capital formation' , by Income method.

6 0
3 years ago
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