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Alexxx [7]
3 years ago
10

suppose that a commercial bank wants to buy treasury bills. these instruments pay $500 in one year and are currently selling for

5012. what is the the yield to maturity
Business
1 answer:
Yuliya22 [10]3 years ago
5 0

Answer:

9.98%

Explanation:

YTM is the estimated return expected from an investment held until its maturity. it is a long term yield which is expressed in annual term

Annual Payment = $500

Current price = $5,012

Yield to maturity = ( Annual payment / Current price ) x 100

Yield to maturity = ( $500 / $5,012 ) x 100

Yield to maturity = 0.0998

Yield to maturity = 9.98%

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The stock in Up-Towne Movers is selling for $46.00 per share. Investors have a required return of 11.1 percent and expect the di
Dimas [21]

Answer:

From the calculation below Up-Towne Movers just paid a dividend of $3.13

Explanation:

The price of share=D1/r-g

The Do is the dividend just paid which is the unknown in the equation

g is the dividend growth rate of 4.3%

r is the required return of 11.1%

The share price is $46.00

$46=Do/(11.1%-4.3%)

46=Do/0.068

by cross-multiplication the equation becomes

$46*0.068 =Do

Do=$46*0.068

Do=$3.13

The dividend just paid by Up-Towne Movers is $3.13 as calculated above from the share price equation

8 0
3 years ago
Which of the following best describes how auto insurance companies manage risk
vfiekz [6]
<span>Which of the following best describes how auto insurance companies manage risk? Auto insurance companies will charge rates based on what they think is appropriate in regards to how likely you are to file a claim. They take into account many factors that will relate to filing a claim in the future and what you have done in the past. By evaluating these, they are determining the risk and how to manage it. </span>
6 0
3 years ago
Managing quality helps build successful strategies of A. ​differentiation, low cost and service. B. ​differentiation, time and r
Liono4ka [1.6K]

Managing quality helps build successful strategies of "​differentiation, low cost and response".

<u>Answer:</u> Option C

<u>Explanation:</u>

The expression of supervising all operations and activities necessary to maintain the rate of competence required, thus understood as "Quality management". It involves defining a performance policy, establishing and enforcing quality scheduling and expectation, as well as quality control and enhancing quality.

In order to attract market, launch of unique product is necessary with pocket friendly price and good quality too. When quality is managed more according to the market need than the owners capability of finance, then only growth of firm is possible, thus quality of product should not be compromised.

5 0
3 years ago
Suppose you have $850 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. Ho
olganol [36]

Answer:

FV= $772

Explanation:

Giving the following information:

Initial investment (PV)= $850

Interest rate (i)= 3.5% = 0.035

Number of periods (n)= 5 years

<u>To calculate the future value (FV), we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 650*(1.035^5)

FV= $772

8 0
3 years ago
Gross domestic product (gdp) is the total market value of all intermediate and final goods and services produced by an economy i
MrMuchimi
A. true
the gross domestic product acts as a quantitative measure of an economy's economic activity on an annual basis

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3 years ago
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