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blondinia [14]
3 years ago
6

g suppose that a commercial bank wants to buy treasury bills. these instruments pay $500 in one year and are currently selling f

or 5012. what is the the yield to maturity
Business
1 answer:
Vinil7 [7]3 years ago
3 0

Answer:

9.98%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. It is a long term return which is expressed in annual term.

As per given data

Annual Payment = $500

Current price = $5,012

$500 payment each year for indefinite period of time is a perpetuity, value of perpetuity can be calculated as follow

Current Price = Annual Payment / Yield to maturity

Yield to maturity = Annual Payment / Current Price

Yield to maturity = ( Annual payment / Current price ) x 100

Yield to maturity = ( $500 / $5,012 ) x 100

Yield to maturity = 0.0998 x 100

Yield to maturity = 9.98%

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Answer:

Cash flows from Financing Activities $4,000

Explanation:

Computation of cash flows from financing activities

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6 0
3 years ago
Which of the following is considered a constructive delivery of a gift?
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Answer:

A) giving the key to a safe-deposit box where the gift is kept

Explanation:

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Answer:

1. technological

2. Social

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4. Economic and legal

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based on the question, 5 environmental forces have been identified with each:

<u>1. Technological</u>

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<u>2. Social</u>

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<u>3. Competitive</u>

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<u>4. Economic and legal</u>

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3 years ago
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Tamiku [17]
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Explanation:

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