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bagirrra123 [75]

3 years ago

14

You buy a bond for $980 that has a coupon rate of 8% and a 10-year maturity. a year later, the bond price is $1,200. (assume a f

ace value of $1,000 and annual coupon payments.)
a. what is the new yield to maturity on the bond?

1 answer:

adelina 88 [10]3 years ago

8 0

What's the mass of the sun

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Mr. Manning is looking to invest in a one-year stock option and has four possible options. The four options have various rates o

ELEN [110]

Answer:

Mr. Manning

a. YHA is the best expected value decision with an expected value of $59,766.

b. HTC is the worst expected value decision.

Explanation:

a) Data and Calculations:

Stock Market Rising Market Stable Market Falling

SUA $68,082 $47,373 $36,362

YSP $64,850 $49,320 $44,865

HTC $57,198 $52,949 $50,605

YHA $59,766 $59,766 $59,766

Expected Value:

Stock Market Rising Market Stable Market Falling Expected Value

Probability 60% 30% 10%

SUA $68,082*60% $47,373*30% $36,362*10% = $58,697

YSP $64,850*60% $49,320*30% $44,865*10% = 58,163

HTC $57,198*60% $52,949*30% $50,605*10% = 55,264

YHA $59,766*60% $59,766*30% $59,766*10% = 59,766

SUA = $40,849.20 + $14,211.90 + $3,636.20 = $58,697.30

YSP = $38,880 + $14,796 + $4,486.50 = $58,162.50

HTC = $34,318.80 + $15,884.70 + $5,060.50 = $55,264

YHA = $35,859.60 + $17,929.80 + $5,976.60 = $59,766

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Q 8.3: When would a credit card holder be entitled to lower interest charges? A : When the card company calculates finance charg

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Answer: Option C

Explanation: The given question relates to the concept of time value of money which in simple words states that the value of money decreases over time. The value of a dollar today will be less than tomorrow.

Hence if a card holder gets grace period to pay the interest before the interest accrues than it means he actually gets to pay lower interest that he could have paid before.

Hence from the above we can conclude that the correct option is C.

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3 years ago

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Novay_Z [31]

Answer:

Joe's Pizza Parlor

The highest number of workers that Joe will hire if he must pay each one $35 a day is

4 workers.

If he wants to maximize his profits without satisfying customers' demand, Joe can choose to work with 2 or 3 workers. However, he can renegotiate the worker's wages downwards.

Explanation:

a) Data and Calculations:

Price of pizza = $5

Wage per worker = $35/day

Number of Workers 0 1 2 3 4 5

Pizzas Baked Per Day 0 12 18 24 30 32

Total revenue 0 60 90 120 150 160

Marginal revenue 0 60 30 30 30 10

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Answer:

C) tracking clients investment

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Person finance involves the management of an individual's or a family's financial aspects, such as budgets, taxation, savings, and investments. A personal finance manager evaluates the financial need of an individual or a family . He or she assist in making decisions that lead to the attainment of short-term and long-term financial goals.

A personal finance manager plays several roles in helping their clients achieve their objectives, some of them include

Develop realistic financial goals with the clients.
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Monitor investments on behalf of the client.

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Explain why cash payments during the period for purchases and for salaries are not specifically reported as cash outflows on the

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In most cases, cash flow and net income statements differ due to the time lag between recorded sales and actual payments. The situation is controlled when the billing customer pays cash in the next period.

The main advantage of the indirect cash flow method is that it provides a net income and cash flow adjustment. The indirect method also helps financial statement users to better understand the various relationships between financial statements and is an easy way to prepare cash flow statements.

Which of the following statements is correct when using the indirect method to prepare the cash flow statement? Income from the sale of equipment is added to the net income of the operations section. Losses on land sales are added to the operating section's net income.

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2 years ago