Its annual compound yield to maturity (YTM) is $881.00
An annual compound hobby is calculated by multiplying the initial main amount by one plus the once-a-year hobby fee raised to the wide variety of compound durations minus one. A hobby may be compounded on any given frequency agenda, from continuous to every day to annually.
"12% hobby" approach that the hobby fee is 12% in keeping with year, compounded annually. "12% interest annual compound monthly" manner that the hobby charge is 12% in line with the year (no longer 12% consistent with month), compounded month-to-month. Consequently, the hobby price is 1% (12% / 12) in line with the month.
A compound hobby is the addition of a hobby to the principal sum of a mortgage or deposit, or in other phrases, interest on essential plus interest.
First, find YTM
N = 20
I = YTM
PV = -860
PMT = 50
FV = 1000
YTM = 6.245%
The price after 5 years is nothing but the future value of the bond after 5 years
N = 5
I = YTM = 6.245
PV = -860
PMT = 50
FV = $881
So the answer is $881.00
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Answer:
$225,000
Explanation:
The cash flow statement is divided into three categories investing, operating and financing. The investing activity refers to those activities which deal in buying and selling for long term asset in cash. The buying is cash outflow while the selling is a cash inflow. So the amount reported under the investing activity is $225,000 as cash inflow.
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Answer:
B) Your portfolio has a beta equal to 1.6, and its expected return is 15%
Explanation:
Since the correlation coefficient between both stocks X and Y is zero, when one stock has an expected return a little higher than 15%, the other stock will have an expected return a little lower than 15%, so both variations basically cancel out each other. So the average expected return for both X and Y will be 15%.