Answer:
I would say the answer is c. inflation.
Answer:
7.29%
Explanation:
The computation of the current yield of the bond is shown below;
Current yield is
= (Par value × annual coupon rate) ÷ Selling price of the bond
= ($1,000 × 7.2%) ÷ $988.22
= $72 ÷ $988.22
= 7.29%
Hence, the bond current yield is 7.29%
This is to be computed by applying the above formula so that the current bond yield could arrive
Answer:
$46.43
Explanation:
Calculation for Below what stock price level would you get a margin call
First step is to calculate the Loan amount
Loan amount=(100 shares × $130 × 0.5
Loan amount= $6,500 × 0.5 = $3,250
Now let calculate Stock price level
0.30 = (100P $3,250)/100P
30 - P = 100P - $3,250
30-100P= - $3,250
-70P = -$3,250
P=$3,250/70
P = $46.43
Therefore Below what stock price level would you get a margin call will be $46.43
Answer:
The answer is 5.47 percent
Explanation:
Firstly, we find coupon payment (PMT).
it can be gotten from the price (present value) of bond formula:
PV = PMT/(1+r)^1 + PMT/(1+r)^2 ....... PMT + FV/(1+r)^n
N = 10.5 years
1/Y = 6.2 percent
PV = $945
PMT = ?
FV = $1000
Using a Financial calculator to input all the variables above,
Annual PMT = $54.72
Semi annual will be $54.72/2= $27.36
Coupon rate is Annual PMT /par value
= $54.72/1000
0.0547 or 5.47 percent
Its an asset of the household or business.