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Semenov [28]
3 years ago
7

You buy a seven-year bond that has a 6.50% current yield and a 6.50% coupon (paid annually). In one year, promised yields to mat

urity have risen to 7.50%. What is your holding-period return
Business
1 answer:
Harlamova29_29 [7]3 years ago
7 0

The current yield and annual coupon rate of 6.50% show that the bond price was at par a year ago.

The givens are FV=1,000, n= 6, PMT = 65.00, and i= 7.50 so with this we know that the selling price this year is $953.06.

So the holding period return is $1,000+$953.06+$65.00

$1,000=0.0181=1.81%

Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)  

- Cutiepatutie ☺❀❤

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Accounts payable $ 18400 Accounts receivable 11000 Accumulated depreciation – equipment 28000 Advertising expense 20600 Cash 150
Debora [2.8K]

Answer:

$42,800

Explanation:

The computation of the net income for the year is shown below:

= Service revenue - advertising expense - depreciation expense - insurance expense - rent expense - salaries & wages expense - supplies expense

= $133,000 - $20,600 - $11,900 - $3,100 - $17,300 - $31,400 - $5,900

= $42,800

We simply deduct all the expenses from the service revenue so that the net income for the year could come

8 0
3 years ago
Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of year 3, and $1,300 at the end
pantera1 [17]

Answer:212121212212121212ggthdfb b bgf bv f fsbggrb

2121211212122121212121212

Explanation:

21

4 0
3 years ago
You have a $15,000 portfolio which is invested in Stocks A and B, and a risk-free asset. $6,000 is invested in Stock A. Stock A
DerKrebs [107]

Answer:

$7073.68

Explanation:

Data provided in the question:

Worth of portfolio = $15,000

Amount invested in stock A = $6,000

Beta of stock A = 1.63

Beta of stock B = 0.95

Beta of portfolio = 1.10

Now,

Beta portfolio = ∑(Weight × Beta)

let the amount invested in Stock B be 'x'

thus,

1.10 = [($6,000 ÷ $15,000 ) × 1.63] +  [( x ÷ $15,000 ) × 0.95 ]

or

1.10 = 0.652 + [( x ÷ $15,000 ) × 0.95 ]

or

0.448 = [( x ÷ $15,000 ) × 0.95 ]

or

x = ( 0.448 × $15,000 ) ÷ 0.95

or

x = $7073.68

6 0
3 years ago
Saturn Industries purchased and consumed 64,000 gallons of direct material that was used in the production of 17,000 finished un
Nikitich [7]

Answer:

The actual price = $1.08

Explanation:

The standard material price can be worked out as follows:

<em>Step 1: Work out the standard price of material  using the material usage variance</em>

Standard price = Material usage variance/(standard quantity of material - actual quantity)

Standard quantity of material = standard qty per unit × actual production

                                              = 4 × 17,000 =68,000

Standard price =  2,800/(68,000-64,000)= $0.7

<em>Step 2 : Work out the Actual material price using the material price variance</em>

Material price variance = (Standard price - Actual price )× Actual quantity of material

6,400 =  (y - 0.7) ×  17,000

6400 = 17,000y  - 11,900

17,000 y = 6,400 + 11,900

y = 18,300/17,000= 1.08

The actual price = $1.08

5 0
3 years ago
Your company has earnings per share of $ 4.19. It has 1.9 million shares​ outstanding, each of which has a price of $59. You are
sveticcg [70]

Answer:

If the current earnings per share of TargetCo. are $2.10, and the times earnings multiple is 12, the relative valuation should result in a $2.10 x 12 = $25.20 per stock. This means that the premium per stock = $25.20 - $21 = $4.20, and the total premium paid for all the 1.9 million shares = $7.98 million.

8 0
3 years ago
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