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lawyer [7]
3 years ago
7

In 2000 Jenson Inc. issued bonds with an 8 percent coupon rate and a $1,000 face value. The bonds mature on March 1, 2025. If an

investor purchased one of these bonds on March 1, 2012, determine the yield to maturity if the investor paid $1,100 for the bond.
Business
1 answer:
Vanyuwa [196]3 years ago
5 0

Answer:

Yield to maturity is 6.6%

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

Assuming Coupon payments are made annually

Coupon payment = $1,000 x 8% = $80

Selling price = P = $1,100

Number of payment = n = 13 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $80 + ( 1000 - 1100 ) / 13 ] / [ (1,000 + 1100 ) / 2 ]

Yield to maturity = [ $80 - 7.7 ] / 1100 = $72.3 /1100 = 0.066 = 6.6%

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Naily [24]

A thearter is kept open for an advertisement to allow people to view or have an idea of the movies to be shown in the evening.

<h3>What is a business strategy?</h3>

Business strategy is a list of actions and decisions made by a company or organization to reach its goals and objectives.

Opening theater in the afternoon is a business strategy and it is an approach to create awareness of what their programs will be.

Therefore, A theater is kept open for an advertisement to allow people to view or have an idea of the movies to be shown in the evening.

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8 0
2 years ago
Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea
AleksAgata [21]

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, <em>the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.</em>

Year                     Workings                        Present value(PV)

1                 $1 × (1.22)  × 1.11^(-1)  =                     1.10

2                 $1 × (1.22)^2 ×(1.11)^(-2) =                1.21

3                 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend  = 21.35 × 1.11^(-2)

                                      = 17.33 (see notes)

<em>The value of the stock</em> = $1.10+ $1.21 + 17.3

                                      = $19.64

Notes:

<em>Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.</em>

<em />

The value of the stock = $19.64

                                     

8 0
3 years ago
Describe some of the mistakes americans often make when it comes to money
goldenfox [79]
Some of the mistakes that we made are:
- Getting loans unthoughtully
- Buying things that we don't actually need before we managed to fulfill all basic needs for our living.
- Too late to invest. In order to financially secure, it's best to set asie an investment and let the profit compound.
8 0
3 years ago
Read 2 more answers
br company has a contribution margin of 12%. sales are $629,000, net operating income is $75,480, and average operating assets a
iragen [17]

The correct option to the given question is option 2) 12.0%

Br company's return on investment is 12.0%

The creation of novel ROIs known as "social return on investment," or SROI, has caught the attention of certain investors and companies. SROI was first created in the late 1990s and considers wider effects of projects utilizing extra-financial value (i.e., social and environmental metrics not currently reflected in conventional financial accounts).

SROI aids in comprehending the benefits of specific environmental, social, and governance (ESG) standards utilized in socially responsible investment (SRI) activities.

For instance, a business might opt to switch to all LED lighting and recycle water in its manufacturing. However, the net benefit to society and the environment could result in a positive SROI. These initiatives have an immediate cost that may have a negative impact on traditional return on investment.

Question

br company has a contribution margin of 12%. sales are $629,000, net operating income is $75,480, and average operating assets are $142,000. what is the company's return on investment (roi)?

Options:

  1. 4.4%
  2. 12.0%
  3. 53.2%
  4. 0.2%

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My carrots have grown sprouts, are they still good?
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Yes, they are. You can just cut off the end and use it like nothing happened! :)

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