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Readme [11.4K]
4 years ago
10

Carla has $10,000 that she would like to save for retirement.

Business
1 answer:
coldgirl [10]4 years ago
4 0

Answer:

higher, stocks, flunctuates, risk, bonds, interest

Explanation:

The chosen responses are the best from the options provided. First, to earn a higher long-term rate of return, stocks offer a higher interest rate than bonds and the reason being that they are riskier.

Stocks belong to the owners of an organisation and as such, they are only entitled to interest after the interests of bond owners and preference stock holders have been settled. Meaning, despite the higher rates of interest offered, it is riskier to be a stock holder than a bond holder

Bond on the other hand, are not equity or company ownership units, they represent debts that the company must pay fixed interest rates on. Although we have the convertible to stock and the non-convertible bonds. However, bonds may be safer due to the fixed interest rates that must be paid but interests are lesser than stocks and irrespective of a company's profitability, a bond holder is only entitled to the fixed interest rate unlike the stock holder who enjoys higher dividends as a result of improved profitability.

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A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. If the cu
bogdanovich [222]

Answer:

4.92%

Explanation:

we have to calculate the market price of the bond in one year from now but in order to do this we have to calculate the yield to maturity:

YTM = {80 + [(1,000 - 750)/10] / [(1,000 + 750)/2] = 105 / 875 = 12%

the market price of the bond in one year is:

PV of face value = $1,000 / 1.12⁹ = $360.61

PV of coupon payments = $80 x 5.3282 (PV annuity factor, 12%, 9 periods) = $426.26

market price one year from now = $786.87

capital gains yield = ($786.87 - $750) / $750 = 4.92%

4 0
3 years ago
Indicate whether each of the following statements is true or false.
m_a_m_a [10]

Answer:

c

Explanation:

5 0
3 years ago
84 of 100 - john has a rental application for a unit in his four-plex from a man in a wheel chair. the man wants to install a ra
Sergio039 [100]
<span>john's choices as the unit owner are the modification cannot be refused; the tenant can pay and should restore to original condition upon move out. As he is giving rent for that house and for his special case this can't refused. but a condition can be added like while returning the house should be provided at the original condition. This type of renovation can be done by the tenant or done by owner and charged to tenant. As it is for the tenant convenience only permission can be given by the owner and cost incurred should be beared by the tenant.</span>
7 0
3 years ago
Find both the arithmetic growth rate and the geometric growth rate of the dividends for Custer's Ice Cream Shoppes.
Katen [24]

Answer:

Arithmetic Growth rate is about 19.89%

Geometric Growth rate is about 23.44%  

Explanation:

Dividend Arithmetic Growth rate is calculated as follows

Step 1:

Find the growth rate of each year

Step 2:

Take its sum

Step 3:

Make an average by dividing the sum of all growths by Number of years in  growth.

Dividend Arithmetic Growth rate is calculated as follows

Step 1:

Find the growth rate of each year

Step 2:

Take sum of all positive growth rates because geometric mean does not include the negative values.

Step 3: Multiply every growth and take the square root of the resultant product of these growths.

A MS Excel File is attached for the working. please find it.

Download xlsx
4 0
3 years ago
A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced c
Aliun [14]

Answer:

The correct answer is letter "C": inadequate enforcement of property rights.

Explanation:

Nowadays, the easiness of access to the internet and other media platforms has increased the number of copyright infringement to increase. Music, movies, TV series, computer software, and videogames are typically the subjects of piracy. However, everyday internet providers are more strict with this inadequate enforcement of property rights by clocking internet services when received copyright notices, for instance.

7 0
4 years ago
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