Answer: $330
Explanation:
The Net cash received is the Total Money received minus the Total money paid.
The total money paid is calculated as such,
= $1,000 x 97%( this a DISCOUNT bond meaning that it was sold for less than Par. This number signifies how much in percentage of Par it was purchased for)
= $970
$970 is the Total Amount paid.
The Total Amount Received would be,
= Principle on Maturity + Interest for 5 years
= 1,000 + 1,000(0.06) * 5 years
= $1,300
Net Cash Received is therefore,
= Total Amount Received - Total Amount Paid
= 1,300 - 970
= $330
$330 is the net cash received over the life of the bond investment.
To strengthen your ideas and opinions with examples, facts, or details is to add supportive details.
It is important when analyzing data and drawing conclusions to have facts and details to support your reasoning. Especially if you are making large decisions for an organization, everyone needs to be able to understand why a decision was made. Having tangible information is the best way to support your ideas.
Answer:
constant returns to scale
Explanation:
Constant returns to scale describes a scenario when long run returns as the scale of production increases, when all input levels including physical capital usage are variable.
Answer :
2.5%
Step by Step Explanation:
Face value = $500
Coupon yield = 2%
Income earned on he bond each year is at the rate of 2%.
Annual coupon = $10
Current bond price = $400
Formula for current yield = 
= 
×100
= 2.5%
Hence, the current yield is 2.5%
