Answer:
YTM = 4%
Explanation:
Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s)
IOU (IOU) 6 Apr 19, 2034 111.44 ? 1,851
<u />
<u>Determine the yield to maturity </u>
YTM = Rate * 2
years to maturity = 2034 - 2018 = 16 years
NPER = 2 * 16 = 32
PMT = ( face value * coupon rate ) / 2 = ( 2000 * 6% ) / 2 = 60
price of coupon ( PV ) = 2000 * 111.44% = 2228.8
Rate = 2% ( excel function : RATE(32,60,-2228.8,2000)
hence YTM = 2% * 2 = 4%
Answer: The final payment would be: $42919,74.
Explanation: To simplify the work we must make a timeline:
0 1 2 3 4 5 6
$6000 $6000 $6000 $6000 $6000 $6000
These would be the normal conditions of the loan.
but if instead of making the 6 payments only one is made at the end:
We must use the FV annuity formula:
6000 × 
= <u>42919,74</u>
Answer:
11%
Explanation:
The computation of the annual rate of return is shown below:
Annual rate of return = Average annual income ÷average investment
where,
Average investment = (Initial investment + Salvage value) ÷ 2
= ($284,000 + $74,000) ÷ 2
= $179,000
And,
Average annual income is
= $60,490 - $40,800
= $19,690
So, the annual rate of return is
= $19,690 ÷ $179,000
= 11%
We simply applied the above formula
Answer:
c. financial resources
Explanation:
Based on the information provided it can be said that the most likely reason for the success of Lezos in international markets are their financial resources. That is because (like mentioned in the question) they are able to keep supporting these projects financially for as much time as they need in order for them to actually become successful. Therefore there is no other factor in play except for money.
