1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nina [5.8K]
3 years ago
11

Suppose you purchase a​ ten-year bond with 5 % annual coupons.You hold the bond for four years and sell it immediately after rec

eiving the fourth coupon. If the​ bond's yield to maturity was 3.03 % when you purchased and sold the​ bond, a. What cash flows will you pay and receive from your investment in the bond per $ 100 face​ value? b. What is the internal rate of return of your​ investment?
Business
1 answer:
Readme [11.4K]3 years ago
7 0

Answer:

$116.78

$110.66  

IRR is 3.03%

Find attached

Explanation:

The cash paid for the investment is the present  value of all cash flows including coupon and face  value promised by the bond discounted using the yield to maturity of 3.03%

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of 3.03%

nper is the number of annual coupon  payments receivable by bondholders which is 10

pmt is the annual coupon=$100*5%=$5

fv is the face value of $100

=-pv(3.03%,10,5,100)=$116.78  

Price after four years means that there are only six years left to maturity,hence, nper changes to 6

=-pv(3.03%,6,5,100)=$110.66  

Download xlsx
You might be interested in
An investment costs $5,200 today. this investment is expected to produce annual cash flows of $2,100, $1,300, $1,800 and $1,200,
worty [1.4K]
5,200 + 21,000 + 1,300 + 1,200 = 10,400 ÷ 10 totally investment 1,040 %
3 0
3 years ago
Jean Claude has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handb
Leno4ka [110]

Answer:

The answer is B. Price Skimming

Explanation:

In marketing, price skimming is a situation in which a high price is initially charged for a product and lowers it later after achieving its aim.

This type of product can be a luxury good in which high price is deemed as of high quality. The main aim is to gather enough revenue from the premium buyers and lowers it later to attract other customers

.

Price Skimming is usually set for products that have short life-cycle

7 0
3 years ago
the bookkeeper for Blue Spruce Equipment Repair made a number of errors in journalizing and posting, as described below. For eac
Sergeu [11.5K]

Answer:

Note: The full question is attached as picture below

                               (a)                   (b)                   (c)  

                                In                                      Larger  

                            Balance      Difference       column

1.                               No               $725             Debit  

2.                             Yes                 NA                NA  

3.                              Yes                 NA                NA  

4.                               No               $225            Credit  

5.                              Yes               $684               NA  

6.                               No                $45             Credit

7 0
3 years ago
In order to help their employees move from one job to another, and in order to meet the challenges of a global economy, corporat
lilavasa [31]

In order to help their employees move from one job to another, and in order to meet the challenges of a global economy, corporations must offer retraining program as part of their employee development programs.

To meet the challenges of a global economy and to help employees move from one job to another corporations must offer retraining as part of employee development programs. Training and development is considered vital because it allows employers to pinpoint skills and knowledge they want in their employees. These trainings not only educate the employees but also provide updates on existing skills to increase productivity. Every business has different needs to retain their employees to meet their internal and external challenges.

These trainings to retain the employees are proved to be fruitful

  1. When there is a talent gap in your organization.
  2. When improvement is required in certain areas.
  3. When training becomes essential in certain programs.

Therefore corporations must offer retraining to help employees move from one job to another and meet global challenges.

You can learn more about retraining at

brainly.com/question/14435353

#SPJ4

6 0
1 year ago
Suppose the Japanese economy has been experiencing slow growth. As a result, the Prime Minister, who thinks John Maynard Keynes
snow_tiger [21]

Answer: The recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen

Explanation:

From the question, we are informed that GDP gap of 1 trillion yen and the marginal propensity to consume (MPC) is 0.60. Also, to close the GDP gap, the prime minister has decided to increase government spending. This means that there will be a recessionary gap because the actual GDP will be less than the potential GDP.

Fir the economy to be brought to its potential GDP, the spending of the government will give a stimulus to the economy. Since MPC is 0.6, the multiplier will be:

= 1/1-MPC

= 1/1 - 0.6

= 1/0.4

= 2.5

The government spending will then increase in order to close the recessionary gap as:

∆Y = ∆G × Multiplier

100 = ∆G × 2.5

∆G = 100/2.5

∆G = 40

Therefore, the recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen.

4 0
3 years ago
Other questions:
  • Marie saved $51. on wednesday, she spent $8 of her savings. what ratio represents the portion of her total savings that she stil
    5·1 answer
  • Monetary policy has a​ ________ effect on aggregate demand in​ a(n) ________​ economy, and fiscal policy has a​ ________ effect
    11·1 answer
  • Consider the following three stocks. (a) Stock A is expected to provide a dividend of $10 a share forever. (b) Stock B is expect
    8·1 answer
  • Akram owns a small farm. He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The in
    13·1 answer
  • A company with a completely fixed cost structure will have operating leverage of 1.a. Trueb. False
    6·1 answer
  • David bought a pickup truck to transport his equipment on weekend fishing trips. He also bought a trailer for his lawn maintenan
    10·1 answer
  • The FIFO method provides a major advantage over the weighted-average method in that: A. the calculation of equivalent units is l
    14·1 answer
  • The Trektronics store begins each week with 360 phasers in stock. This stock is depleted each week and reordered. The carrying c
    7·1 answer
  • Notary Signing Agent with nearly 10 years experience has reviewed and is completely familiar with all the documents in a loan pa
    10·1 answer
  • According to Ms. De la Rosa, what small, frequent purchases made by most people interfere with their savings and cause regret?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!