I think the answer is C but i could be wrong
Answer:
Yield to maturity is 3.94%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 9% = $90/2 = $45 semiannually
Selling price = P = $1080
Number of payment = n = 10 years x 2 = 20
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $45 + ( 1000 - 1080 ) / 20 ] / [ (1,000 + 1080 ) / 2 ]
Yield to maturity = [ $45 - 4 ] / 1040 = $41 /1040 = 0.394 = 3.94%
The correct answer for the question that is being presented above is this one:
(1) <span>B)People prefer tangible items, so the government would not be able to satisfy demand for the tangible item at any fixed rate of exchange
</span>(2) <span>B)Potential buyers of the assets of a bank, incorrectly rumored to be distressed, may suspect the assets to be of poor quality.
</span>(3) <span>C) The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis.
</span>(4) <span>A)Checkable Deposits / Required Reserves</span>
Answer:
Return on company's stock = 15.6%
Explanation:
<u><em>The capital asset pricing model (CAPM)</em></u><em> relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c</em>
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 6%, Rm- 14%, β- 1.2
E(r) = 6% + 1.2× (14- 6)%
= 6% + 9.6%
= 15.6%
Return on company's stock = 15.6%
Answer:
Option D is the correct answer to this question.
Explanation:
An increase in the average family size in recent years has created a demand for bigger cars. Since Roger Woods proposed that Crimson must introduce some variety in its product line to maintain overall profit margins, option D is the only option that suggests a need for adding a new variety to its product line (Bigger Cars), since there is a demand for it already arising from the increase in the average family size.
