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
Vadim26 [7]
3 years ago
15

Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $89.75, while a 2-year zero sells at $79.88. You

are considering the purchase of a 2-year-maturity bond making annual coupon payments. The face value of the bond is $100, and the coupon rate is 10% per year. a. What is the yield to maturity of the 2-year zero?
Business
1 answer:
Sindrei [870]3 years ago
7 0

Answer:

11.89%

Explanation:

You can use a financial calculator to find the yield to maturity of the 2 year -zero coupon bond. Input the following;

Time to maturity; N= 2

Face value of the bond  ; FV = 100

Annual coupon payments; PMT = 0 (since it's a zero-coupon bond)

Present value or price of the bond; PV = -79.88

Next, compute the annual interest rate; CPT I/Y = 11.89%

Therefore, the yield to maturity of the 2-year zero-coupon  bond is 11.89%

You might be interested in
For a restaurant: Select one: a. cheese and other wholesale food items would be considered fixed resources in the short run. b.
vaieri [72.5K]

Answer:

c. a building would be a fixed resource in the short run.

Explanation:

A fixed resource is a factor of production that doesn't vary with output. E.g. building

A variable resource is a factor of production that varies with output. If output increases, variable resources increases. E.g. labour, cheese and other wholesale food items.

Output is what is produced. E.g. the food produced by the restaurant is the output.

I hope my answer helps you

3 0
3 years ago
Which is not true of limits? Select one: a. Are the point where you should stop the negotiation b. Are also called resistance po
Rama09 [41]

Answer:

The correct answer is letter "B": They should be ignored in a bidding war.

Explanation:

Negotiations are vital in every aspect. They allow individuals to deal with situations in which parties need from each other but either of them is willing to take the first step to come to an agreement. Negotiations can also be useful out of problematic situations when parties voluntarily want to make a pact but the initial terms are unclear.

Placing limits for negotiations is important as well. Limits will prevent parties from giving to much of themselves or avoiding the other party to take advantage of a given situation. Thus, in front of war, limits must be placed in a negotiation.

7 0
4 years ago
different levels of planning in supply chain operations management include: group of answer choices general and detailed plannin
Mashcka [7]

Different levels of planning in supply chain operations management include strategic, tactical, and operational planning.

In the corporate world, supply chain can be taken for granted. Realizing that the supply chain is the cornerstone of any operation or business is crucial. Supply chain management is divided into three levels: strategic, tactical, and operational. Together, these levels handle all the choices necessary to timely deliver high-quality goods to clients at the lowest possible cost while generating the most possible income.

Examining the three levels of supply chain management the strategic level, the operational level, and the tactical level will help you better grasp the many stages of supply chain management and how they affect one another.

To know more about Supply chain visit:

brainly.com/question/28168252

#SPJ4

3 0
1 year ago
Tony's Beach T-Shirts has fixed annual operating costs of $75,000. Tony retails his T-shirts for $14.99 each and the variable co
Andreyy89

Answer:

$112.425

Explanation:

breakeven is

first we need to understand the concept of breakeven:

breakeven in sales makes reference to the amount of revenue in dollars at which a company has a profit of zero ($0.00). covering the underlying fixed expenses of a busines

with this concept we have that :

Total Costs   = fixed annual operating cost + variable cost + sold units

Revenue = Total Costs

14.99 * sold units = 75,000 + 4.99 * units

10 * sold units = 75,000

breakeven  = 7,500  units

now we can have the breakeven in dollars doing the convertion

breakeven = breakeven in units * prices

breakeven= 7,500 units * $14.99/unit  

breakeven = $112,425

8 0
3 years ago
An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) _____ audit.
agasfer [191]

Answer:

(B) Management

Explanation:

Management audits are a means of evaluating the effectiveness and efficiency of various systems within an organization, showing how well the management is deploying and applying its strategies in the interests of shareholders, employees, and the organization's reputation.

7 0
4 years ago
Other questions:
  • John has just won the state lottery and has three award options from which to choose. He can elect to receive a lump sum payment
    13·1 answer
  • Using the average score to describe a sample is an example of _____.
    15·1 answer
  • The given terms refer to different approaches to regulating natural monopolies. Place each with its corresponding description.A
    7·1 answer
  • Porter co. is analyzing two projects for the future. assume that only one project can be selected. project x project y cost of m
    9·1 answer
  • A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.
    6·2 answers
  • How do contact lists differ from an address book?
    5·1 answer
  • You are considering purchasing a car with a sticker price of $36,270 (non negotiable with no down payment required). You wish to
    13·1 answer
  • A restaurant offers hamburgers and cheeseburgers on its menu. Customers order a hamburger, indicate how it is to be cooked and w
    8·1 answer
  • Hewlett-Packard founders David Packard and William Hewlett strived to create a close-knit organizational culture that gave a lot
    15·1 answer
  • How do you start a business successfully
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!