Answer:
Results are below.
Explanation:
<u>To calculate the price of each bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
<u>Bond X:</u>
Coupon= (0.11/2)*1,000= $55
YTM= 0.09/2= 0.045
Years to maturiy= 11 years
Bond Price= 55*{[1 - (1.045^-11)] / 0.045} + [1,000/(1.045^11)]
Bond Price= 469.1 + 616.2
Bond Price= $1,085.3
<u>Bond Y:</u>
Coupon= (0.09/2)*1,000= $45
YTM= 0.11/2= 0.055
Years to maturiy= 11 years
Bond Price= 45*{[1 - (1.055^-11)] / 0.055} + [1,000/(1.045^11)]5
Bond Price= 364.16 + 554.91
Bond price= $919.07
Answer:
a) $22,010
b) $3,780
c) $25,790
Explanation:
a) In calculating the value of inventory still left, the total value needs to be calculated first,
= (80 freezers * $540) + $820 ( transport fees)
= 43,200 + 820
= $44,020
40 out of 80 freezers have not been sold so,
= 40/80 * 44,020
= $22,010
b) In calculating the profit, subtract the expenses from the sales
Sales = 40 * 700
= $28,000
= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation
= 28,000 - 22,010 - (28,000*0.06) - 180 - 350
= $3,780
c) The amount remitted by the consignor will be,
= Sales - commission - advertising - installation
= 28,000 - (28,000 * 0.06) - 180 - 350
= $25,790
B. underperform those who hold investments for the long term and trade infrequently.
Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in price underperform those who hold investments for the long term and trade infrequently.
<h3>Why do investors underperform?</h3>
Market timing is the first explanation. Individual investors attempt to decide whether to invest in stocks and when to withdraw funds from them. Despite the fact that we are aware of the market's unpredictability, investors frequently invest during bull markets and exit during down markets. This is seen in the money flows into and out of mutual funds during stock market extremes. Your return will be negatively impacted if you buy high and sell low.
The fees that investors spend are the second factor contributing to their poor market performance. The majority of investors are unaware of their costs and don't care. They fail to understand how a few dollars here and there could possibly make a difference. They believe the fees and charges don't exist since they can't see them.
Learn more about investors here:
brainly.com/question/13602963
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Answer:
t value is 1.495
Explanation:
The null and alternative hypothesis are :
H0 : mu = 1327
ha: mu > 1327
This is a one tailed test
Critical value = 1.771
at 0.05 significance level with df = 14-1 = 13
test statistics:
s = 411.53, n = 14
t = (xbar -mu)/(s/sqrt9n))
= ( 1491.43 - 1327)/(411.53/sqrt(14))
= 1.495
Decision:
Reject H0 if tstat > 1.771
Fail to reject H0
