Answer:
risk premium is 4%
Explanation:
given data
investment = $100000
rate = 5%
rate = 4 %
cash flow = $9000
to find out
What is the risk premium
solution
we know here invest is done in more return so risk is always here taht is risk premium and invest here $100000 with 5 % so
return of investment is $5000
so here rate of investment is 5 %
and
we have given same amount cash flows of $9000 per year
so rate of investment will be 9%
so here
risk premium will be 9% - 5%
so risk premium is 4%
Answer:
A) the implied 1 year forward rates respectively 9,8 , 11,81 and 13,83 according to the formular
Explanation:
b) pure expactations true then
1.108²/1.098 - 1 =11.81% for a two year bond
1.118²/1.108 - 1 = 12.81% for a three year bond
The answere: The will be a shift upwards in next years curve.
c) Assume a par of 1000
in the next year a two year zero coupon bond will be a year zero and sell at 1000/1.1181 = 894.37 to get the return we take divide selling prices at year zero the trading price according to ytm is 1000/1.108² =814.55
therefore expected return 894.37/814.55= 9.79%
c2 the zero coupon bond at three year zero is trading at 1000/1.1282 = 886.446 and according to the ytm the coupon is trading at 1000/13.83^3= 715.607
therefore the expected return is
785.711/715.607=9.79%
Answer:
Instructions are listed below
Explanation:
Giving the following information:
The Variable unitary cost= $37 each.
The fixed costs are $70,000.
The selling price for each product is $72.
1) revenue function= P*X
Revenue function= 72*x
Option E
2) Profit function= (P-Vc)*X-Fc
Profit function= 35*x-70000
Option B
3) break-even quantity= fixed costs/contribution margin
break-even quantity= 70000/35= 2000 units
Option D
4) break-even point ($)=fixed costs/contribution margin ratio
Contribution margin ratio= contribution margin/P= 0,49
break-even point ($)=70000/0,4861111= $144000
Hi, thank you for posting your question here at Brainly. The main purpose of career clusters is to group similar careers together to aid in planning and preparation. The answer is D. The grouping of specific skills aims to provide the US schools to have a better framework.
Answer: E
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