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
10

Stanley hart invested in a municipal bond that promised an annual yield of 6.7 percent. the bond pays coupons twice a year. what

is the effective annual yield (eay) on this investment? (round percentage to two decimal places.)
Business
1 answer:
shtirl [24]3 years ago
3 0
The effective interest rate is given by

r= \left(1+\frac{i}{t}\right)^t-1

Given that the <span>bond yeilds an annual yield of 6.7 percent and pays coupons twice a year.

The effective interest rate is given by:

r= \left(1+\frac{0.067}{2}\right)^2-1  \\  \\ =(1+0.0335)^2-1 \\  \\ =(1.0335)^2-1=1.0681-1 \\  \\ =0.0681=6.81\%</span>
You might be interested in
A _______ maintains and distributes to potential creditors information regarding the creditworthiness of potential debtors. mort
xz_007 [3.2K]
A Credit Bureau maintains and distributes to potential  creditors information regarding the creditworthiness of potential debtors. mortgage broker, federal reserve bank, credit bureau, bureau of investigation. 
C.B a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions.
6 0
3 years ago
Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 2
Dovator [93]

Answer: $413.81

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value

Coupon is a constant payment so is an annuity.

Coupon = 6% * 1,000 = $60

Price of bond = Present value of annuity + Present value of face value

= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)

= (60 * 6.514) + (1,000 / (1 + 15%)²⁷

= $413.81

8 0
3 years ago
Companies striving for global market leadership pursue strategic alliances or collaborative partnerships with foreign companies
FrozenT [24]

Answer:

get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some examples of international economic organizations involved in global economy and trade are;

I. World Trade Organization (WTO).

II. United Nations (UN).

III. International Monetary Fund (IMF).

IV. United Nations Conference on Trade and Development (UNCTAD).

When a company or business firm strive for global market leadership, its main focus would be to pursue strategic alliances or collaborative partnerships with foreign companies. This would enable it get into critical country markets quickly and effectively, it would also gain an inside knowledge and understanding about unfamiliar markets, consumer demographics and cultures, as well as getting hold of valuable skills and competencies that are concentrated in specific geographic locations in the world.

6 0
3 years ago
What design flaw on this ballot could potentially cause confusion for voters? the ballot appears fine as it is, without any pote
tester [92]
The alignment of the yes and no arrows is confusing in some portions
6 0
3 years ago
Read 2 more answers
Gnosis Inc. is an energy drink manufacturer. A white racing stag on a purple background is the logo on all of its drinks. When c
xz_007 [3.2K]

Given that the logo of the brand is what makes people to buy when they see it, it is an example of a retrieval cue.

<h3>What is a retrieval cue?</h3>

This is the cognitive and the phsyical environment of a person that helps them to recall certain things.

The cue here helps people to but the brand of this drink because they have become so familiar with it.

Read more on business here: brainly.com/question/24553900

#SPJ1

3 0
2 years ago
Other questions:
  • __________ makes it possible for Ford to invest $60 million in a Mexico City manufacturing plant to produce smaller cars and lig
    13·1 answer
  • Which of the following is TRUE regarding a dead weight loss.
    5·1 answer
  • Empire Company is a manufacturer of smartphones. Its controller resigned in October 2017.
    12·1 answer
  • Lee qualified as head of a household for 2019 tax purposes. Lee’s 2019 taxable income was $100,000, exclusive of capital gains
    8·1 answer
  • A graduating high school student decides to take a year off and work to save money for college. The student plans to invest all
    10·1 answer
  • According to the insurance institute for highway safety injuries the most common injury in the US due to front or rear crashes c
    6·1 answer
  • *economics*<br> What happens when a country's central bank raises the discount rate 10<br> banks?
    11·2 answers
  • The economy is in long-run equilibrium. Technological change shifts the long-run aggregate supply curve $120 billion to the righ
    13·1 answer
  • Susie buys two goods: rounds of golf and massages.Suppose that the price of a round of golf is $20 and the price of a massage is
    7·1 answer
  • budgets that are revised by adding a new quarterly budget to replace the quarter that just elapsed are called:
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!