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topjm [15]
4 years ago
8

When a bond's price falls, its yield to maturity and its current yield?a.falls; falls b.rises; rises c.falls; rises d.rises; fal

ls
Business
1 answer:
murzikaleks [220]4 years ago
7 0

Answer:

(B) rises; rises

Explanation:

There is an inverse relationship between a bond's price and its yield, be it its yield to maturity or its current yield. The relationship is evident is the pricing formula for a bond.

Bond Price = ∑\frac{Coupon}{(1+y)^{n} }

where y = the current yield of the bond (or yield to maturity)

n = the number or period of each coupon paid.

Thus, when a  bond'd price falls, its yield to maturity and current yield rise.

The yield to maturity of a bond is a single yield that equates the discounted values of all coupon and principal repayment of the bond to its current price. On the other hand, the current yield is the yield of the bond at a particular period and is influenced by the level of interest rate in an economy, the current rating of the bond, etc.

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A founder owns 100% of a company and there are no options outstanding and no option pool for options to be granted later. An inv
zloy xaker [14]

Answer:

Share of founder in the company will be 50 %

Explanation:

We have given Initial ownership pattern

Founder owns 100 % of the company

A new investor wants 30% and also  option pool of 20% is also required

Now if the option pool is pre-money, then the option pool is created without impacting the desired investor ownership%;

Investor=30%

Option pool=20%

So founder = 100-30-20 = 50 %

So the share of founder in the company will be 50 %

8 0
3 years ago
Henry Jones contributed equipment, inventory, and $53,300 cash to a partnership. The equipment had a book value of $25,500 and m
gogolik [260]

Answer:

$94,000

Explanation:

Henry Jones contributed a cash of $53,300 to the partnership

The equipment had a book value of $25,500 and a market value of $32,900

The inventory had a book value of $51,900 and a market value of $16,000

The partnership assumed a note payable of $14,500 that was owed by Henry

Therefore, the amount that should be recorded in Henry's capital can be calculated as follows

= $53,300+$39,200+$16,000-$14,500

= $108,500-$14,500

= $94,000

Hence $94,000 should be recorded in Henry's capital account

6 0
3 years ago
Al Miler, owner of Al's Garage, estimates that he will need $29,000 for new equipment in 15
Lynna [10]

Answer:

The answer is option A). $6,710.60

Explanation:

The total amount Al miler will need to invest at the beginning to have the money in 15 years is known as the principal amount.

The formula for calculating the total amount after 15 years with interest compounded semiannually is as follows;

A = P (1 + r/n) (nt)

where;

A = the future value of the initial investment

P = initial investment amount/principal amount

r = the annual interest rate

n = the number of times that interest is compounded per unit t

t = the time the money is invested for

In our case;

A=$29,000

P=p

r=10/100=0.1

n=interest is compounded semiannually which is twice a year=2

t=15 years

Replacing values in the formula;

29,000=p(1+0.1/2)^(2×15)

29,000=p(1+0.05)^30

29,000=4.322 p

p=29,000/4.322

p=$6,710

Al must invest $6,710 for him to have enough money for the new equipment in 15 years

5 0
3 years ago
Marginal utility is A. the total utility received from consuming a certain quantity of a good divided by the quantity. B. the ut
Olegator [25]

Answer:

The utility received from consuming one unit of a good

Explanation:

Marginal utility refers to the additional satisfaction that a consumer will obtain from consuming additional units of goods or services.

Marginal utility is utilized by economists to identify and check how much of a particular item a consumer is willing and ready to buy.

Marginal utility is calculated as:

change in total utility/ change in the number of goods consumed.

6 0
3 years ago
Read 2 more answers
The stock of Cleaner Homes is currently selling for $15.40 a share. The new rights offering grants one right for each share of s
Kaylis [27]

Answer:

$0.60

Explanation:

Calculation for the value of one right

The first step is to calculate for the cost per share.

Using this formula

Cost per share =[New share price+(New Share right*Stock price)]/ (One right +New Share right)

Let plug in the formula

Cost per share [$13 + (3 × $15.40)] / (1 + 3)

Cost per share =$13+$46.20/4

Cost per share =$59.20/4

Cost per share = $14.80

The second step is to calculate for the Value of right.

Using this formula

Value of right=New share price-Cost per share

Let plug in the formula

Value of right = $15.40 - 14.80

Value of right= $0.60

Therefore the value of one right will be $0.60

5 0
4 years ago
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