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malfutka [58]
3 years ago
8

5. An investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent coupon rate. The bond’s current

market price is $935 for a $1000 par value instrument. Suppose the investor sells the bond at the end of 13 years for $970. What is the holding-period yield? What is the effective yield?
Business
1 answer:
ella [17]3 years ago
5 0

Answer:

Holding period yield is 114.97%

effective yield is 8.72%

Explanation:

holding period yield=(Price at call-initial price+coupon payments)/initial price

                                =($970-$935)+(13*$80)/$935

                                 =($35+$1040 )/$935

                                 =$1075/$935

                                  =114.97%

The effective yield is the yield to call which can be computed using the excel rate formula:

=rate(nper,pmt,-pv,fv)

nper is the number of payments before the call which is 13

pmt is the periodic payment by bond which is $1000*8%=$80

pv is the current market price of $935

fv is the bond price at end of 13 years at $970

=rate(13,80,-935,970)

rate=8.72%

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Law Incorporation [45]

Answer:

Explanation:

Issue: Will the court rule in support of Daniel’s argument that Nintendo breached the warranty based on reasonable expectation on the performance of an expensive system and statements made while selling the gaming system?

Rule:  There is a creation of express warranty when a seller makes a description of the statement quality, condition or performance of goods sold. This warranty is created by the statement of facts and if the seller uses words to designate the value of the supposed goods, it will only be considered as an opinion that does not create any express warranty.

The customer’s reasonable expectation of the existence of the gaming system based on the price leads to implied warranty. The goods sold should be logically fit for the general purpose for which it is sold. It should be of proper quality to satisfy the implied warranty of merchantability and the goods should fit the particular purpose for which the buyer will use the goods to satisfy the implied warranty of fitness for a particular purpose.

Analysis: Here, the argument of Daniel that Nintendo’s description of the gaming system as “most reliable”, and “durable” asserted that the quality and performance of the gaming system will not stay because these words create general statements that are made as part of sale or seller’s opinion about the goods. These words would be considered as puffery and do not create any express warranty. The higher price of the gaming system would create an implied warranty about the performance of the system, but the switch failed only after the warranty period. When the seller has expressly stated the warranty period as one year, any defects that occur after the warranty period will not breach the implied warranty.

Moreover, the gaming system was reasonably fit for Daniel’s business purpose and worked well during the warranty period. Hence Daniel’s arguments will not stay in front of the court.

Conclusion: The court will not rule in favor of Daniel and Daniel will not be able to recover against Nintendo because no breach of warranty had occurred.

8 0
4 years ago
Which career professionals in the Arts, A/V Technology, and Communication careers are typically self-employed? Check all that ap
garri49 [273]

Answer:

I think its B & C

Explanation:

Hope this helps you

3 0
3 years ago
Read 2 more answers
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current
goldenfox [79]

Answer:

A. $287,000

B. $192,050

Explanation:

a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.

b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050

Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:

=[$287,000 - ($181,050-$86,100)]

=$287,000-$94,950

=$192,050

5 0
3 years ago
An effect of changing legislation on human resources professionals is that: Multiple select question. they must update company H
navik [9.2K]

They must update company HR policies and procedures is An effect of changing legislation on human resources professionals.

<h3>What is human resources?</h3>

Human resources is the recruiting department in the organization, that has many roles and responsibilities like payroll, fill the vacant position of the company, ensure the company's harmony, arranging the events in the organization.

Thus, option A is correct.

For more details about human resources, click here:

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3 0
2 years ago
Number of units sold 20,000 Selling price per unit $ 30 Variable selling expense per unit $ 3.2 Variable administrative expense
Fantom [35]

Answer: $137,000

Explanation:

Contribution margin = Sales - Variable expenses

Sales (30 * 20,000)                                                                       $600,000

Cost of Goods sold(24,000 + 340,000 - 19,000)                       ($345,000)

Variable selling expense (3.2 * 20,000)                                     ($64,000)

Variable administrative expense (2.7 * 20,000)                         ($54,000)

Contribution margin                                                                      $137,000

Cost of goods sold = Beginning merchandise + Purchases - Ending merchandise

4 0
3 years ago
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