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
ahrayia [7]
3 years ago
15

A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of

Business
1 answer:
nikklg [1K]3 years ago
5 0
10,000×1.08=$10,800
As simple as investing gets.
You might be interested in
Hyundai achieved the status of being the 6th largest automobile producer in the world by 2005 and a major competitor to gm, ford
Novay_Z [31]
Hyundai's success has been attributed to their AGGRESSIVE GOAL SETTING. The articles that review the success of the Hyundai company believed that the success of the company is due to many factors which include: internal transfer of experienced staff, focusing on localized production, the codification of previous experience and aggressive goal setting. 
6 0
3 years ago
The buyer of a futures contract A. assumes the short position. B. may not sell the contract without the permission of the origin
Anit [1.1K]

Answer:

D

Explanation:

Firstly, before we answer this question, we need to know what a futures contract is.

A futures contract can be defined as an agreement specifying the delivery of a commodity or a security at an agreed future date and at a currently agreed price.

This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.

Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date

6 0
3 years ago
A turnkey project includes Multiple Choice government investment. construction up to but not including actual production. direct
Tema [17]

A turnkey project includes construction up to but not including actual production. Option B. This is further explained below.

<h3>What is construction?</h3>

Generally, construction is simply defined as the process of erecting a building.

In conclusion, The building process, but not the manufacturing itself, is included in a turnkey project.

Read more about construction

brainly.com/question/8606089

#SPJ1

3 0
2 years ago
Which of the following statement(s) is/are False? Assume a positive interest rate
gtnhenbr [62]

Answer:

False Statement:

B. Only II is False.

Explanation:

If the cash flow from a project is farther out, the present value will be lower, all else being equal.  This is because of the time value of money.  This concept states that the money you receive today is higher in value than the same amount received in the future.  And if the future is father out, then the value of the money will continue to reduce in relative value based on this time value of money concept.

5 0
3 years ago
What is Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B? Portfolio Average Retur
inn [45]

Answer:

The Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

Explanation:

<em>Solution</em>

Given that:

Now,

The Jensen’s alpha of a Portfolio is computed by applying  the formula  below:

Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return ) ) ]

For the information given in the question we have the following,

The Risk free rate of return = 3. 1%

In order to find the Jensen’s alpha we have to first get the following from the information given in the question :

1. Portfolio Return

2. Portfolio Beta

3.Market Rate of Return

Thus,

(A)Calculation of Portfolio Return :

The formula for calculation of Portfolio Return is  given as:

E(RP) = ( RA * WA )+ ( RB * WB )

Where

E(RP) = Portfolio Return

RA = Average Return of Portfolio A ; WA = Weight of Investment in Portfolio A

RB = Average Return of Portfolio B ;  WB = Weight of Investment in Portfolio B

For the information given in the question we have the following:

RA = 18.9 %, WA = 45 % = 0.45, RB = 13.2 %,  WB = 55 % = 0.55

By applying the values in the formula we have

= ( 18.9 % * 0.45 ) + ( 13.2 % * 0.55 )

= 8.5050 % + 7.2600 % = 15.7650 %

(B). Calculation of Portfolio Beta:

Now,

The formula for calculating the Portfolio Beta is

ΒP = [ ( WA * βA ) + ( WB * βB ) ]

Where,

βP = Portfolio Beta

WA = Weight of Investment in Portfolio A = 45 % = 0.45 ; βA = Beta of Portfolio A = 1.92

WB = Weight of Investment in Portfolio B = 55 % = 0.55 ; βB = Beta of Portfolio B = 1.27

By Applying the above vales in the formula we have

= ( 0.45 * 1.92 )   + ( 0.55 * 1.27 )

= 0.8640 + 0.6985

= 1.5625

(C). Calculation of Market rate of return :

Now,

The Market Risk Premium = Market rate of return - Risk free rate

From the Information given in the Question we have

The Market Risk Premium = 6.8 %

Risk free rate = 3. 1 %

Market rate of return = To find

Then

By applying the above information in the Market Risk Premium formula we have

6.8 % = Market rate of Return - 3.1 %

Thus Market rate of return = 6.8 % + 3.1 % = 9.9 %

So,

From the following  information, we gave

Risk free rate of return = 3.1% ; Portfolio Return = 15.7650 %

The Portfolio Beta = 1.5625 ; Market Rate of Return = 9.9 %

Now

Applying the above values in the Jensen’s Alpha formula we have

The Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return )) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * ( 9.9 % - 3.1 % ) ) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * 6.8 % ) ]                  

= 15.7650 % - [ 3.1 % + 10.6250 % ]

= 15.7650 % - 13.7250 %

= 2.0400 %

= 2.04 % ( when rounded off to two decimal places )

Therefore, the Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

7 0
3 years ago
Other questions:
  • You are the only seller of eggs in town, and the price-elasticity coefficient for eggs is known to be 0.8. if you want to increa
    11·1 answer
  • At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg u
    15·1 answer
  • What are the indirect and direct competitors of nike
    12·2 answers
  • At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufact
    8·1 answer
  • You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any
    10·1 answer
  • "The Internet of everything (IOE) has created a lot of excitement in the business community. What evidence could you present to
    8·1 answer
  • After considering current market conditions, an investor decides to place 60% of her funds in equities and the rest in bonds. Th
    13·1 answer
  • The tables show the spending and revenue for Littleland in 2010. Use the tables and other information to answer the questions. S
    11·1 answer
  • How do safe investments usually have a lower rate of return than riskier ones?
    15·2 answers
  • Laura is an investor and a limited partner in a limited partnership. Two years after she becomes a limited partner, Laura thinks
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!