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Amiraneli [1.4K]
3 years ago
6

Derek just received a bonus and wishes to set aside a portion of it in order to save for a 10-year reunion cruise that his old c

ollege fraternity is sponsoring, 4 years from now. His broker says that he can buy a bond that matures in 4 years with an APY of 6%,The cost of the cruise is :
Business
1 answer:
kotegsom [21]3 years ago
3 0

Answer:

$3,168

Explanation:

We will receive $4000 in future (after 4 years time) which means all we want to know is the amount that we Derek must deposit today.

This present value of the $4000 payment received after 4 years from today can be calculated using the following formula:

Present value = Future Value / (1 + r)^n

Here

Future Value is $4000

r is 6%

n is 4 years

So by putting values, we have:

Present value = $4000 / (1 + 6%)^4 Years

Present value = $3,168

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The best definition of an accounting system is: The concepts, principles, and standards specifying the information which should
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Answer:

The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers.

Explanation:

Accounting system is a system used to organise financial information. Accounting system can be manual or electronic

7 0
3 years ago
Pretend you are an employer. you will discuss a promotion and a raise with an employee. What will you say to them?
pychu [463]

Answer:

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6 0
3 years ago
When the market interest rate rises above the coupon rate for a particular quality of bond, the "current yield": will be below t
meriva

Answer: will be above the coupon rate

Explanation:

The Coupon rate is a fixed rate that a bond issuer pays to it's bond holders. The <em>Current Yield</em> however is calculated by dividing the Coupon payment by the Price of the bond.

When Market interest rises above the Coupon Rate, the price of the bond decreases in the market and vice versa.

Because the price of the bond is now less and it is the divisor of the Coupon rate to get the Yield, it will give a higher percentage which will be more than the Coupon rate.

4 0
3 years ago
Which of the following caused readership of The Boston Globe to plummet?
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IT IS>>>>>>>> ONLINE NEWS

5 0
3 years ago
You expect KT Industries (KTI) will have earnings per share of $5 this year and expect that they will pay out $1.25 of these ear
sleet_krkn [62]

Answer:

9.75%

Explanation:

EPS = Earning per share = $5

DPS = Dividend per share  $1.25

ROI = return on investment = 13%, or 0.13

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Growth = RR * ROI = 13% * 75% = 9.75%

Therefore, the expected growth rate for KTI's dividend is closest to 9.75%

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