Answer:
3. Investing is riskier than putting money in a savings accounts.
Explanation:
Investing involves putting money in profits generating ventures. It is risky because the money invested may be lost should the venture make losses instead of profits. Investments activities include buying of shares and other marketable securities or starting and operating a business. Should the business or investment do well, the returns or profits can be attractive.
Saving is putting money aside for future consumption. Saving may be done through savings accounts that as safe and secure. Money saved is risk-free. The possibility of losing it is very minimal. Because money saved is kept safe, it does not generate much income for the owner.
What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi-annual coupons if this bond is currently trading for a price of $4876?
A) 6.30%
B) 4.50%
C) 4.30%
D) 5.07%
E) 8.60%
Answer:
5.07%
Explanation:
Given the following parameters from the question:
Number of years = 5
N => Number of compounding periods = 5 * 2 = 10
FV => Face Value = $5,000
PV => Present Value = $4876
Percentage rate = 4.5%
PMT => Annuity Payment = Face Value * percentage
=> 5,000 * 0.045 = 225
Given that, it is semi annual rate, we have 225 / 2 = 112.5
CPT YTM or I/Y => Yield to Maturity = 2.53 * 2 = 5.07%
Hence, the final answer is 5.07%
Answer:
Consider the following explanation.
Explanation:
First off, lets make an equation for it. You have your x and y. With x being the price and y being your output, the pounds.
So you split it up to (.25,21.5) and (.14,27). Then do the y2-y1/x2-x1 for slope, gets you -50. Put that into y=mx+b and solve for b. B is found with being 34. Then put it all together for your demand equation. q=-50p+34 is your demand. Then get revenue which is pq so -50p^2+34p. Do the derivative of your revenue and set = to 0 for maximum revenue price. So -100p=-34. Divide and you get .34 which is your max price for max revenue. For revenue, just plug your price back into your original revenue equation.
Answer:
a. If you receive cash as a gift, save at least part of it.
b. Pay your bills on time to avoid late fees and finance charges.
c. Use direct deposit or set up your account to automatically transfer money directly into savings.
d. Save any extra money you get as a raise or bonus from your employer.
e. When you get a tax refund, save it.
Explanation:
The items above are clearly helpful to save while<em><u> the next two may require additional considerations:</u></em>
f. If your employer offers a retirement plan, join it.
You should analyze this investment option as you do with all your investment, you shoud not go willingly blind into accept a proposal.
g. Avoid debt.
If you are going into debt to acquire assets or leverage an already existing investment the debt will help you, not hurt you.
While the others are prcedures to generate savings this are den which require thinking into it.
