What is the richest state?

A two-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000.

iVinArrow [24]

Answer:

(a) 9.9%

(b) 10.09%

The further explanation is given below.

Explanation:

The given values are:

Coupon payment

= $99

Price

= $1,000

(a)

The Yield to maturity (YTM) will be:

= $\frac{C+\frac{F-P}{n} }{\frac{F+P}{2} }$

where,

C = Coupon payment

P = Price

n = years to maturity

F = Face value

On putting the estimated values is the above formula, we get

⇒ $99+\frac{0}{1000}$

⇒ $.099$

⇒ $9.9$ %

(b)

Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.

= $[99\times (1 + r)] + 1,099$

Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:

Rate (r) Total proceeds Realized YTM ( $(\frac{proceeds}{1000} )^{.5} - 1$ )

7.9% 1205.8 9.8%

9.9% 1207.8 9.9%

11.9% 1209.8 9.99%

Now,

Overall proceeds realized YTM:

= $\frac{proceeds}{1000} -18 \ percent \ 1,\frac{2081208}{1000} - 1$

= $0.0991$

= $9.91 \ percent \ 10 \ percent \ 1,\frac{2101210}{1000}- 1$

= $0.1000$

= $10.00 \ percent \ 12 \ percent \ 1,\frac{2121212}{1000}-1$

= $0.1009$

= $10.09$ %

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Pavlova-9 [17]

I think it’s either the last one or the first one sorry if I’m wrong

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Do you think the NELK BOYS are clickbaiting sometimes?

harkovskaia [24]

Answer:

Ummm... yes

Explanation:

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Rick Palmer received a $2,500 raise this year. This increased his salary as an associate TV producer from $45,000 to $47,500. Wh

PilotLPTM [1.2K]

Answer: Rick had a 5.55% nominal salary Increase.

Explanation: In Finances & Economics , Nominal value is measured in terms of money . This means that the value has not been adjusted against inflation and will only show the "Number Value" rather than the economic value which is how much purchase power this salary increase really means.

The formula to calculate the % for this nominal increase is : (Final Value - Initial Value) / Initial Value * 100 ==>> ($47500-$45000)/$45000 = 0.55 *100 ===> 5.5%

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Ale Corporation had net income of $240,000 and paid dividends to common stockholders of $40,000 in 2017. The weighted average nu

Aneli [31]

Answer:

The price earnings ratio is 19:1

Explanation:

The price earnings ratio tells us that how much price the investors are willing to pay for $1 of earnings provided by the company. The price earnings ratio is calculate by dividing the price per share by the earnings per share.

Price earnings ratio = Price per share / Earnings per share

The price per share is the market price of the stock.

The earnings per share is calculated using the following formula:

Earnings per share = Net Income / Weighted average shares outstanding

Earnings per share = 240000 / 60000 = $4 per share

The price earnings ratio = 76 / 4 = 19 / 1 or 19:1

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