The bond that has a face value of $1,000 has a duration of 10 years.
<h3>
What is a bond?</h3>
A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.
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Answer:
A. 300
Explanation:
The computation of the economic order quantity is shown below:
= 
where,
Annual demand = 600 bottles × 50 weeks = 30,000 bottles
Carrying cost per bottle = $50 × 40% = $20
And, the ordering cost per order is $30
Now put these values to the above formula
So, the value would equal to
= 
= 300 bottles
Hence, option A is correct
Answer:
Free for the next (for example) month until the time the time is due, considering you paid for 2 months rent in the midst of one.
Explanation:
trust
Answer:
8.00%
Explanation:
The price of a zero-coupon bond is the present value of its face value since no coupon payments exist, hence, we can determine the semiannual rate of return using the formula below:
PV=FV/(1+r)^n
PV= $675.68
FV=$1000
r=semiannual rate of return=unknown
n=number of semiannual periods in 5 years=5*2=10
$675.68=$1000/(1+r)^10
$675.68*(1+r)^10=$1000
(1+r)^10=$1000/$675.68
$1000/$675.68 can be rewritten as ($1000/$675.68)^1
(1+r)^10=($1000/$675.68)^1
divide indexes on both sides by 2
1+r=($1000/$675.68)^(1/10)
r=($1000/$675.68)^(1/10)-1
r=4.00%(semiannual rate of return)
the annual rate of return(compounded semiannually)=4.00%*2=8.00%
