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mario62 [17]
3 years ago
6

John buys a $1,000 bond that pays 6% annual interest at 75. what is john's annual yield?

Business
1 answer:
lina2011 [118]3 years ago
5 0

To calculate the current yield of bonds.

We have the given par value of $1000, a market price of $750 and an interest rate of 6%.

Formula of current yield: 

Yield =  (interest rate * par value)/(market price) * 100%

         =  ((0.06 *  $1000)/$750) * 100%

         = ( $60/$750) * 100%

         =0.08 * 100%

         = 8%


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Describe the economy of the islands in the west indies.
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Agriculture is the traditional basis of the economies of the West Indies.

<h3>What is the economy of the West Indies?</h3>
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A debit: Multiple Choice Always decreases an account. Is the left-hand side of a T-account. Is the right-hand side of a T-accoun
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3 years ago
Explain how to invest in securities markets and set investment objectives such as long-term growth, income, cash, and protection
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Answer with Explanation:

The investment in securities must include purchases of stock of more than 15 industry firms because diversified investment gives an average rate of return on investments. Hence it would be better to lower the risk of investment by simply investing in more than 15 firms and each of them must be from different industry sector. Nowadays due to coronavirus, it would be better to investing in fintech, IT and Hi-Tech industries will pay much more than low tech industries. Tesla is one of these tech companies whose share price have surged by 390% in past 12 months. It doesn't mean that other industry products don't pay enough. Setting objective includes how much yearly investment must be added to you security portfolio so that the net worth of the portfolio keeps growing. The reinvestment of dividends received, insurance of downside risk, investment on the basis of value at risk, etc. are all the set objectives that are considered while investing and managing security portfolio. If you are not confident with setting objectives then investing via investment institutions would be a another best option which had employed hundreds of CFA's who are working to increase the wealth of their potential clients and it is more likely that you take home a better return on investment as compared to a person who has little knowledge of security investments.

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3 years ago
Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2006 they buy 100 head
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Market prices for 2006.
100 heads of cauliflower = $200 => 1 head of cauliflower = $200 / 100 = $2.
50 bunches of broccoli = $75 => 1 bunch of broccoli = $75 / 50 = $1.50
500 carrots = $50 => 1 carrot = $50 / 500 = $0.10
Total cost of items of food = $2 + $1.50 + $0.10 = $3.60

<u>Market prices for 2007</u>.
75 heads of cauliflower = $225 => 1 head of cauliflower = $225 / 75 = $3.
80 bunches of broccoli = $120 => 1 bunch of broccoli = $120 / 80 = $1.50
500 carrots = $100 => 1 carrot = $100 / 500 = $0.20
Total cost of items of food = $3 + $1.50 + $0.20 = $4.70

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7 0
3 years ago
An entrepreneur is investigating starting a company that provides tax advice to small companies. In order to position his compan
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Answer:

b. provide tax advice either in a different manner or provide a different kind of tax service than competitors.

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When the company's objective is to position itself in the market differently from competitors, the focus should be on offering a product or service that has different attributes than the competitor.

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Therefore, the most suitable alternative for this issue is the letter b, because to position your company differently from existing competitors, the entrepreneur must provide tax advice differently or provide a different type of tax service than competitors.

4 0
3 years ago
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