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1 year ago

The following bond was quoted in The Wall Street Journal:

1 answer:

6 0

If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

<h3>Cost of bonds today</h3>

Using this formula

Bond Yield =Total annual interest of bond / Total current cost of bond at closing

First step is to calculate the Closing bonds

Closing bonds=(96.875 x 10)× 5 bonds

Closing bonds= $968.75 × 5 bonds

Closing bonds= $4,843.75

Second step is to calculate the Next day cost of bonds

Next day cost of bonds=[(96.875 + 1.50) x 10]× 5 bonds

Next day cost of bonds = $983.75 × 5 bonds

Next day cost of bonds= $4,918.75

Third step is to calculate the Cost of bonds today

Cost of bonds today=$4,918.75 - $4,843.75

Cost of bonds today = $75

Therefore If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

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1. economic growth;

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3 years ago

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane pr

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One reason why many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that demand for home repair and building supply is INCOME ELASTIC.

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3 years ago

A semi-annual coupon bond has MacD of 26.7 years, yield-to-maturity of 4.2%, and price of $1189.29. What is its DV01? Answer in

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3 years ago

Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in pr

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B. underperform those who hold investments for the long term and trade infrequently.

Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in price underperform those who hold investments for the long term and trade infrequently.

<h3>Why do investors underperform?</h3>

Market timing is the first explanation. Individual investors attempt to decide whether to invest in stocks and when to withdraw funds from them. Despite the fact that we are aware of the market's unpredictability, investors frequently invest during bull markets and exit during down markets. This is seen in the money flows into and out of mutual funds during stock market extremes. Your return will be negatively impacted if you buy high and sell low.

The fees that investors spend are the second factor contributing to their poor market performance. The majority of investors are unaware of their costs and don't care. They fail to understand how a few dollars here and there could possibly make a difference. They believe the fees and charges don't exist since they can't see them.

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2 years ago

The following extract was taken from the worksheet of Special Events Bakers for the year 2019.

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Answer:

The amount of Depreciation Expense for the equipment used in the business is $1,700

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In order to calculate the amount of Depreciation Expense for the equipment used in the business we would have to make the following calculation:

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The amount of Depreciation Expense for the equipment used in the business is $1,700

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