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
nikdorinn [45]
3 years ago
10

Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the exp

ected rate of return under certain assumptions. Which of the following is one of these assumptions?
a. The bond will not be called.
b. The bond has an early redemption feature.
Business
1 answer:
Nonamiya [84]3 years ago
4 0

Answer:

The bond will not be called.

Explanation:

The yield to maturity (YTM of, is the internal rate of return (overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond is held until maturity, and that the principal payments are made on schedule, it is equal to the current price of the bond.

YTM equals the expected rate of return under certain assumptions like the bond will not be called.

You might be interested in
The cob Douglas production function is given by Q(K,L)=AK^1.4*L^1.6
Alexeev081 [22]

Part a) The Cob Douglas production function is given as:

Q(K,L)=AK^{1.4} L^ {1.6 } .

To show that this function is homogeneous with degree 3, we introduce be a parameter, t.

Q(tK,tL)=A(tK)^{1.4} (tL)^ {1.6 } .

Using properties of exponents, we on tinder:

Q(tK,tL)=At^{1.4}K^{1.4} t^ {1.6 }L^ {1.6 } .

This implies that:

Q(tK,tL)=t^{1.4} \times t^ {1.6 }(AK^{1.4} L^ {1.6 } )

Q(tK,tL)=t^{1.4 + 1.6}(AK^{1.4} L^ {1.6 } )

Simplify the exponent of t to get;

Q(tK,tL)=t^{3}(AK^{1.4} L^ {1.6 } )

Hence the function is homogeneous with degree, 3

Part b) To verify Euler's Theorem, we must show that:

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L}=3AK^{1.4}L^{1.6}

Verifying from the left:

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =K(1.4AK^{0.4} L^{1.6}) + L(1.6AK^{1.4} L^{0.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =1.4(AK^{1.4} L^{1.6}) + 1.6(AK^{1.4} L^{1.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =(1.4 +  1.6)(AK^{1.4} L^{1.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =3(AK^{1.4} L^{1.6})

Q•E•D

8 0
3 years ago
If your superior tells you that she will offer you a raise provided you perform additional work beyond the requirements of your
KengaRu [80]

Answer:

reward power

Explanation:

Reward power -

It refers to as the method of using rewards , so that the employee follows a particular instructions , is referred to as reward power .

The reward acts as a bait so that the employee can follow any order of the senior .

As from the given scenario of the question ,

The person works some extra hours in order to get a good increment .

Hence , from the given scenario of the question ,

The correct answer is reward power .

3 0
3 years ago
An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 yea
dalvyx [7]

Answer:

5 years

Explanation:

Initital investment           $100,000

Cash inflows 1-5 (20,000*5)             ($100,000)

The payback period for this investment project is 5 years.

or

100,000/20,000=5 years

7 0
3 years ago
purchased a new piece of equipment for its research lab on January 1, 2015 for $45,200. The equipment is expected to have a usef
Murljashka [212]

Answer:

The gain recognized on the equipment is $6,550

Explanation:

A straight-line depreciation method distributes depreciation costs evenly throughout the useful life of the equipment, and depreciation per year using this method is calculated thus:

Depreciation per year = (Cost of equipment - salvage value) ÷ useful life

= (45,200 - 6,100) ÷ 4 = 39,100 ÷ 4 = $9,775

This means that each year, the machine depreciates by a value of $9,775.

Next, we are given that the machine was sold for $32,200 after two years, to determine if a profit or loss was made, we will calculate the expected residual value after two years, and find the difference between this value and the selling price. The residual value is calculated thus:

Residual value = Cost of equipment - (depreciation per year × number of years used)

Residual value = 45,200 - ( 9,775 × 2 )

Residual value = 45,200 - 19,550 = $25,650

Difference between residual value and selling price = 32,200 - 25,650 = $6,550 (profit was made since the selling price was higher than the value of the equipment)

8 0
3 years ago
How do you benefit from holding a job?
neonofarm [45]
If you hold a job for a long time, if or when you choose to leave that job your employer will put in a good word for your next job it will also look good for you that you are able to hold a job for a lnog period time so your next employer wont be scared that you would get up in leave after a month
3 0
3 years ago
Other questions:
  • Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance
    13·1 answer
  • Accounting profit is equal to a. total revenue minus the opportunity cost of producing goods and services. b. average revenue mi
    15·1 answer
  • A(n) _____ allows you to create a wireless connection among your smart devices.
    6·2 answers
  • Can someone be my friend?
    14·2 answers
  • Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense
    12·1 answer
  • Oakleaf Manufacturing incurs costs of $75 ($67 variable and $8 fixed) to make a product that normally sells for $120. A customer
    10·1 answer
  • . Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30%
    12·1 answer
  • "The factor(s) which cause(s) a movement along the demand curve include(s):
    14·1 answer
  • Select the correct answer. Which of these do you need to do when receiving criticism? A. Do not respond to criticism. B. Ignore
    14·1 answer
  • Currently in the united states, money is backed by:____.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!