1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
inessss [21]
3 years ago
9

You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coup

on interest rate is 10%, and par value is $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%, your annual total rate of return on holding the bond for that year would have been Group of answer choices None of the choices are correct 7.00% 9.95% 8.00% 11.95%
Business
1 answer:
Gekata [30.6K]3 years ago
4 0

Answer: 11.95%

Explanation:

Present value of the bond before you sold it;

FV = 1,000

N = 6

PMT = 100 = 10% * 1,000

Rate = 8%

Using excel to calculate, use the PV function;

Present value of bond = $1,092.46

Present value of bond after you sell it;

FV = 1,000

N = 5

PMT = 100 = 10% * 1,000

Rate = 7%

Present value = $1,123.01

The Annual total rate of return will be = ( New Price - Old price + Income) / Old price

= ( 1,123.01 - 1,092.46 + 100) / 1,092.46

= 11.95%

You might be interested in
What are the purposes of a good web page design?
Marina CMI [18]
To get the attention of as many viewers as possible, & to make the web page as easy as possible for your viewers to find the information that they're looking for.
6 0
3 years ago
Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8% note for $100,000. The note was to be
Flauer [41]

Answer: b. Harold is not required to recognize gross income but must reduce his cost basis in the land to $130,000.

Explanation:

When Harold bought the land for $150,000 he acquired a basis of $150,000 in the land. Due to Jewel's cash problems, he managed to pay $20,000 less for the land.

For tax reporting purposes, he need not recognize gross income but he must reflect that he acquired the land for $20,000 less in his basis for the land thereby reducing the basis to $130,000.

8 0
4 years ago
La Wear, a very expensive brand of clothing and accessories d of clothing and accessories, promotes its products by appointing f
Anika [276]

Answer:

c) Admiration

Explanation:

Advertising appeals are communication strategies adopted in advertising to persuade the audience to buy or act in a certain way.

La Wear is using the <em>Admiration appeal</em>  because<em> they are </em><em>marrying the idea </em><em>of famous personalities to their expensive clothing & accessories. </em>

The connection of brand ambassadors with the La Wear appeals the audience to connect with these ambassadors and encourage to buy product because they recognize these ambassadors as a source of admiration and respect.

 

7 0
3 years ago
Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company a
liq [111]

Answer:

<u>licensing</u>

<u>Explanation:</u>

Licensing is another great source of income for big companies. Usually, it involves a legally binding agreement in which <em>the bigger company (</em>Licensor) grants <em>the smaller company</em> (Licensee) the right to use the licensor’s company's name or logo for an agreed fee.

Thus, Caterpillar could be said to have<u> licensing agreements</u> in over 150 countries.

8 0
3 years ago
Gina Raiter, the president and CEO of AutoMotion Auto Service Centers, has asked several managers and employees to help establis
solong [7]

Answer:

A mission statement

Explanation:

A mission statement is a brief summary of the values, aims and objectives of an organization or a company. it defines what the company does to the owner, the employees and the customers.

an example of a mission statement of a furniture company:

"We make this affordable & possible by offering a selected range of well-designed, functional home-furnishing products at low prices so that as many people as possible will be able to afford them"

4 0
3 years ago
Other questions:
  • There are three firms in an economy: A, B, and C. Firm A buys $250 worth of goods from firm B and $200 worth of goods from firm
    8·1 answer
  • Which would be a negative externality of increased satellite usage worldwide?
    6·1 answer
  • The movement to find new and better ways to manage large amounts of web- and sensor-generated data and derive business insight f
    14·1 answer
  • Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year: Sales $5,088,000 Cost of g
    10·1 answer
  • The people Kayla works with call her bad names and harass her because she has a speech impairment. This happens every day. Her b
    5·2 answers
  • On the production line the company finds that 99.7% of products are made correctly. You are responsible for quality control and
    12·1 answer
  • In an emergency situation the driver should always contact the dispatcher? True or false
    12·2 answers
  • Exercise 7-16 (Algo) Estimating bad debts LO P3 At December 31, Folgeys Coffee Company reports the following results for its cal
    15·1 answer
  • 2. Ellen went to play golf last week at her favorite course. As she was approaching the first hole, she noticed (1 point)
    5·1 answer
  • A recent zoning amendment has changed the area zoning from commercial to residential. All of the commercial buildings within the
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!