Answer:
yield to maturity = 7.06%
Explanation:
yield to maturity (YTM) is calculated using the following formula:
YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]
- FV = $2,000
- PV = $1,902.14
- C = $2,000 x 6.48% x 1/2 = $64.80
- n = 12 x 2 = 24
YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually
Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.
Answer:
$1,032
Explanation:
Calculation to determine What monthly rent must she charge for each apartment to break even
First step is to calculate the Monthly costs using this formula
Monthly costs = Mortgage payment + Real estate taxes + Insurance costs + Maintenance costs
Let plug in the formula
Monthly costs=$1,510 + ($2,304 / 12) + ($1,452 / 12) + [2 ×($1,446 /12)]
Monthly costs= $1,510 + 192+ 121 + 241
Monthly costs= $2,064
Now let calculate the Break-even monthly rent per apartment
Using this formula
Break-even monthly rent per apartment = Monthly costs / 2
Let plug in the formula
Break-even monthly rent per apartment = $2,064 / 2
Break-even monthly rent per apartment = $1,032
Therefore What monthly rent must she charge for each apartment to break even will be $1,032
When making competitive priority decisions the firm <u>"must make trade-off decisions".</u>
Making decisions requires exchanging off one thing against another.
In economics, the term trade-off is regularly communicated as an opportunity cost, which is the most favored conceivable option. A trade-off includes a forfeit that must be made to get a specific item or experience. A man surrenders the chance to purchase 'great B,' since they need to purchase 'great A. For a man setting off to a ball game, their financial trade-off is the cash and time spent at the ballpark, when contrasted with the option of watching the diversion at home and sparing their cash, in addition to the time spent heading to the ball game.
Answer:
N = 5 years
Explanation:
At first we have to calculate the number of periods to determine at which part of the table we should look at.
Given,
PV = $20,000
FV = $32,000
Interest rate, i = 0.10 (10%)
Number of periods, n = ?
We know, Future value, FV = PV × 
or, $32,000 = $20,000 × 
or, 1.6 = 
As the factor is 1.6, we will look at the following image which is the FV factor table to find the number of periods.
We can find it in a different way too.
log 1.6 = n log 1.10
or, n = 
or, n = 4.93 years
Therefore, n = 5 years
There are 4 jacks in the deck.
13 are clubs and 26 are all red cards.
The computation for the following problems are shown below:
a.
All are jacks
Computation: 4/52 * 3/51 * 2/50 = 1/5525
b.
All are clubs
Computation: 13/52 * 12/51 * 11/50 = 11/850
c.
All are red card
Computation: 26/52 * 25/51 * 24/50 = 2/17
