The yearly return of the investor is given to be 11.069%
<h3>How to find the YTM</h3>
In order to do this we have to make use of the Rate function in excel
This would be given as
=RATE(nper, PMT, PV, FV)
where Nper is 5 years
PMT is = $1,000*10% = $100
PV = $980
The future value Fv is given as $1,000
Hnece we would have to type in excel
RATE(5,100,-980,1000)
This would give us the value of the YTM as 10.5348%
Next would be to find the rate of return of this investor. This would be the rate that he actually earned.
We would also use the rate function
=RATE(nper, PMT, PV, FV
Npe = 4 years
PMT = $1,000*10% = $100
PV = $980
FV = $1,020 that is the amount for which the bond was sold
=RATE(4,100,-980,1020)
The solution would be = 11.0698%
Thus we can say that the return earned on investment is 11.0698%
Read more on YTM here
brainly.com/question/26376004
#SPJ1
Answer:
Disintermediation.
Explanation:
Disintermediation can be defined as the removal of middlemen from a business transaction. This means that the producers carry out transactions directly with the customers.
Disintermediation reduces cost and increases efficuency because the consumers can now purchase the product at a cheaper price from the producers due to the fact that the middlemen have been exempted from the purchasing process.
Disintermediation can also lead to an increased burden on the producers because they are solely in charge of supplying goods to potential customers.
The simple money multiplier if the banks in Ruritania have a required reserve ratio of eight percent will be 12.5.
<h3>What is the significance of money multiplier?</h3>
Money multiplier can be referred to or considered as the total derived after division, finding the reciprocal of the required reserve ratio of an any commercial bank or any financial institution as such. In the above case, the money multiplier will be computed as 1 / 8 × 100 = 12.5.
Therefore, the significance regarding the simple money multiplier has been aforementioned.
Learn more about money multiplier here:
brainly.com/question/14986591
#SPJ4
Answer:
$10,215
Explanation:
Amount
Purchase 11,100
Less; purchase return <u>-1,600</u>
Net purchase 9,500
Less: Purchase discount (9500*3%) <u> -285</u>
9,215
Freight in <u>1,000
</u>
Cash Amount paid <u>$10,215</u>
Answer:
The correct option is b) $12.40.
Explanation:
The stock price can be calculated using the Gordon growth model (GGM) formula that assumes that dividend growth rate will be stable in the long run. The formula is given as follows:
P = d / (r - g) ……………………………………… (1)
Where;
P = Stock price = ?
d = next year dividend = Dividend just paid * (1 + Dividend growth rate) = $1.00 * (1 + 0.054) = $1.00 * 1.054 = $1.054
r = required rate of return = 13.9% = 0.139
g = dividend constant growth forever = 5.4%, or 0.054
Substituting the values into equation (1), we have:
P = $1.054 / (0.139 - 0.054)
P = $1.054 / 0.085
P = $12.40
Therefore, the stock price $12.40. That is, the correct option is b) $12.40.