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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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"Which of the following statements are TRUE? I New issues of Treasury Bills are generally priced at par II New issues of Treasur
Aleksandr [31]

Answer:

The remaining part of the question is:

Which of the following statements are TRUE?

I New issues of Treasury Bills are generally priced at par

II New issues of Treasury Bonds are generally priced at par, or at a slight discount to par

III New issues of Agency Bonds are generally priced at par, or at a slight discount to par

A. I only

B. III only

C. II and III only

D. I, II, III

Correct Answer:

C. II and III only

Explanation:

It is a fact that virtually all new issues of T-Bills are always sold at a discount to par value. These are original issue discount obligations, with the accrued value of the discount being the interest income earned on these securities.

<em>Treasury Bonds and Agency Bonds are issued at par or in most cases at a very slight discount to par, and make periodic interest payments.</em>

4 0
3 years ago
As the winter holiday season was approaching, Margie decided to give each team a window display or an indoor display to decorate
Flura [38]

Answer:

The answer is autonomy (Option D)

Explanation:

Autonomy in human resource management refers to the level or degree of discretion and freedom which an employee is permitted to exercise when performing his/her job.  In other words, it means granting employees the freedom on how to approach work.  

A manager or superior like Margie (in the question) who gives employees autonomy simply gives minimal instruction on what needs to be achieved but allows the employees to go about the job in ways that best suit them.

7 0
3 years ago
Margie received her store order on 12 3 16 at 4:00 a.M. She just opened one of the fountain bibs today 12 7 16 at 12:00 p.M. The
Kruka [31]

Answer and Explanation:

The correct way for putting this on expiration paper is as follows

Expiration date: 1/17/2017

Exp time: 4:00 AM

Preparation date: 12/3/2016

Preparation time: 4:00 AM

The above represents the correct way i.e to be putted on an expiration paper

Therefore we applied the given information to arrive at an answer

6 0
4 years ago
Accountants consider only explicit costs when measuring accounting profit. Accountants ignore implicit costs because
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Answer:

are not egarded to their sector

Explanation:

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3 years ago
Bob and Sally are married, file a joint tax return, report AGI of $120,000, and have two children. Del is beginning her freshman
ch4aika [34]

Answer:

B) $5,000

Explanation:

Bob and Sally can claim an American Opportunity (AO) credit for both of their children, Del and Owen.

Del's AO credit is $2,500 (100% of  the initial $2,000 qualifying expenses and 25% of the next $2,000 qualifying expenses).

Owen's AO credit is the same as Del's, $2,500.

The total American Opportunity credit claimed is $5,000 ($2,500 + $2,500)

6 0
4 years ago
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