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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%

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while shopping grey spend 90% of the money she had if she has $4,500 on shopping what was amount of money spent​
goldenfox [79]

Answer:

$4,050

Explanation:

Grey has $4,500 for shopping.

She spent 90%  while on shopping.

The amount spent = 90/100 x $4500

=0.9 x $4,500

=$4,050

7 0
3 years ago
A company purchases inventory on terms of net 30 days and resells to its customers on terms of net 15 days. The inventory conver
Tanzania [10]

Answer:

The company's cash conversion cycle is 75 days

Explanation:

The conversion cycle is the number of days that a business takes to convert its investment in inventory into cash flowing from the purchase and sales of the business.

Conversion cycle = Payable days + Inventory in Stock days + Receivable days

where

Payable days = Purchases term  = 30 days

Inventory in stock = Number of days until inventory remains unsold = 60 - 30 days = 30 days ( As payable days are already included in inventory conversion days )

Receivable days = Sales term = 15 days

Placing values in the formula

Conversion cycle = 30 days + 30 days + 15 days

Conversion Cycle = 75 days

6 0
3 years ago
Early in 2015, Mathew is analyzing shares of Janeff Corp. He expects the following dividends per share (end of year). 1. 2015: $
Svetllana [295]

He should pay no more than $66.68 per share

Explanation:

Given ,

1. 2015: $1.00

2. 2016: $1.25

3. 2017: $1.50

Earnings per share = $4.50

P/E ratio = 20

Required rate of return = 12%

Stock price per share expressed according to P / E ratio

P/E Ratio = Market Price per share ÷  Earnings per share  

20 = Market Price per share ÷ $4.50

Market Price per share = 20 × $4.50

Market Price per share = $90

Earn 12% of return

So here you discount to present value all the planned dividend and market price. use as discount factor here a necessary rate of return

present value of all amounts = 66.7

So, maximum amount that is paid to earn 12% return is $66.7

7 0
3 years ago
He people who promote innovations as part of the process of transmission are called? adopters. transmitters. innovators. entrepr
Alina [70]

The people who promote innovations as part of the process of transmission are called "Transmitters".

<h3>What do you mean by term Innovations?</h3>

An innovation refers to the action or process of changing/transforming something. It an be used to make a process more effective.

In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers.

Adding to it, the transmitters are those who are helpful in the process of transmission of something. Rest all options like A, C and D are incorrect.

Therefore, correct option is B.

Learn more about transmitters, refer to the link:

brainly.com/question/2084370

#SPJ4

6 0
1 year ago
What determines the amount of tax revenue generated from oil and natural gas produced in Texas?
erastovalidia [21]

Answer:

in Texas, the amount of oil and natural gas produced together with the market price determines the amount of tax to be generated.

7 0
3 years ago
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