The rate of return should an investor expect to earn if he or she purchases these bonds is 4.81%
<h3>What is
rate of return?</h3>
A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payoff from a derivative or structured product.
Annual Rate of Return: Definition and Calculation
For example, if an investment is worth $70 at the end of the year and was purchased for $60 at the start of the year, the annual rate of return is 16.66%.
A good return on investment is generally thought to be around 7% per year. Based on the historical average return of the S&P 500 after correcting for inflation, this is the barometer that many investors utilize.
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Answer:
7.98%
8.61%
Explanation:
wj = [(0.172)² - 0.50x0.522x0.172)/((0.522)²+(0.172)²-2x0.50x0.522x0.172]
= - 0.07211
Expected returns
= (-0.07211)x 0.112+(1-(-0.07211))x0.082
= 7.98367%
Standard deviation
=√((-0.07211)x(0.522²+((1-(-0.07211))x0.172)²+2x(-0.07211)x(1-(-0.07211))x0.522x0.172x0.5)
This gives us a standard deviation of
= 8.61054%
The expected return = 7.98%
The standard deviation = 8.61%
Myrna borrows $500 at an annually compounded interest rate of 8 percent that she will repay at the end of 10 years. She will be required to pay off $1,079.46 at the end of 10 years.
Your loan principal amount, interest rate, and period are all factors in the straightforward loan payment calculation. The principal amount and interest payments are distributed equally across the length of the loan. Although your term's length may vary, you'll normally have 12 payments to make each year.
Principal: The sum that is deposited into your account when you borrow money. Interest is the fee the lender charges you for a loan. Your interest rate and paid upfront expenses, like as origination fees, are included in your annual percentage rate (APR). Your monthly payments won't fluctuate over the course of the loan because the majority of personal loans have fixed interest rates. Your credit score and credit history impact interest rates; the better your credit score, the cheaper your interest rate will be. Fees: Extra loan costs including origination fees, late fees, insufficient funds fees, and more.
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Answer:
$900,000
Explanation:
The estimated litigation expense of $3,000,000 will be multiplied by the income tax rate for all the years which is 30%.
Hence,
($3,000,000 × 30%) = $900,000
Therefore the deferred tax liability to be recognized is:
$900,000
