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pentagon [3]
1 year ago
14

A 5-year bond with a 10% coupon rate was purchased at $980 at issue and sold at $1020 by end of year 4. What is the investor's y

early rate of return? How does it compare to coupon rate and YTM?
Use a financial calculator and Excel to solve it
Business
1 answer:
Dimas [21]1 year ago
6 0

The yearly return of the investor is given to be 11.069%

<h3>How to find the YTM</h3>

In order to do this we have to make use of the Rate function in excel

This would be given as

=RATE(nper, PMT, PV, FV)

where Nper is 5 years

PMT is = $1,000*10% = $100

PV = $980

The future value Fv is given as $1,000

Hnece we would have to type in excel

RATE(5,100,-980,1000)

This would give us the value of the YTM as 10.5348%

Next would be to find the rate of return of this investor. This would be the rate that he actually earned.

We would also use the rate function

=RATE(nper, PMT, PV, FV

Npe = 4 years

PMT = $1,000*10% = $100

PV = $980

FV = $1,020 that is the amount for which the bond was sold

=RATE(4,100,-980,1020)

The solution would be = 11.0698%

Thus we can say that the return earned on investment is 11.0698%

Read more on YTM here

brainly.com/question/26376004

#SPJ1

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Bạn phải gửi 1 số tiền vào NH là bao nhiêu nếu sau 7 năm nữa bạn sẽ nhận được 50000$ (cho biết lãi suất NH là 10%/1năm).
aliina [53]

Answer:

Hiệu trưởng, P = $71428.57

Explanation:

Cho các dữ liệu sau đây;

Thời gian = 7

năm Lãi suất = 10%

Lãi suất đơn giản = $50,000

đô la Để tìm số tiền gốc;

Về mặt toán học, lãi đơn giản được tính bằng công thức này;

S.I = \frac {PRT}{100}

Ở đâu;

  • S.I là lãi suất đơn giản.
  • P là hiệu trưởng.
  • R là lãi suất.
  • T là thời gian.

Thay vào công thức, ta có;

50000 = \frac {P*10*7}{100}

50000 = \frac {70P}{100}

Cross-multiplying, we have;

50000 * 100 = 70P

5000000 = 70P

P = \frac {5000000}{70}

<em>Hiệu trưởng, P = $71428.57</em>

8 0
3 years ago
The issuer of a 5% common stock dividend to common stockholders should transfer from retained earnings to paid-in capital an amo
NISA [10]

Answer: A

Fair value of the shares issued.

5 0
3 years ago
Which of these is an essential characteristic of a command economy
kari74 [83]

Answer:

does not allow market forces like supply and demand to determine what how much and at what price they should produce goods

3 0
3 years ago
Which of the following would probably be a variable cost in a soda bottling plant? a. Direct labor b. Bottles c. Carbonated wate
cestrela7 [59]

Answer:

Option E

 

Explanation:

A variable cost refers to the business expense that varies in relation to revenue from manufacturing. Based on the volume of output of a business, variable expenses gets significantly impact; these increase as productivity increases, and decline as production declines. Sources regarding variable costs typically involve raw material and storage costs.

Thus, from the above we can conclude that all of the mentioned costs are variable costs as direct labor , bottles and water will all increase as the level of production will increase.

5 0
3 years ago
You have agreed to paint your neighbor's house a lovely shade of chartreuse for $1500 and discover much to your dismay that the
Maslowich

Answer:

fixed price contract

Explanation:

Based on the information provided within the question it can be said that the neighbor most likely transferred risk with a fixed price contract. This refers to a contract that whose price is fixed at a set amount which does not depend on resources or time spent to complete the contract. Therefore it does not matter how much time or money the painter has to spend on tools, he must complete by the terms of the contract for the $1500 that were agreed upon.

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