Answer:
Explanation:
First of all, as the interest is paid semi-annually, we calculate semi-annual interest rate by dividing yield to maturity by the number of periods in a year (2).
Semi-annual interest rate = 0.0818 / 2 = 0.0409
Now using the following formula
where,
YTM = 0.0409 (semi-annually)
Face Value = $1000
Current Price = $823.5
n = Number of semi-annual periods
Taking natural log on both sides,
Hence, semi-annual periods are 4.837. Therefore, the bond will mature in approximately (4.837/2) 2.4185 years.
Answer:
Susan is owning a business and this type of ownership is called Sole proprietorship.
Explanation:
In the question the details which are provided are:
Susan is owning a business and she is operating a large restaurant in Dallas which is giving employment to about fifty people there.
She has also kept two managers for assisting her in the restaurant work and she delegates some decision making from them too but the ownership remains only with her.
So, this form of business ownership is called sole proprietorship.
Sole proprietorship: It is the simplest and easiest way of starting a business of one's own. In this type of unincorporated business the business is owned and run by a single member or individual.
It does not deals with the legal contracts between the business entities and any individual.
Examples: It constitutes of single person membership in the business.
So, the businesses like a grocery store, food mart, or restaurants can be their examples.
In this type of business as soon as we start providing the services to the other people thatis named as sole proprietorship.
Answer:
Rate lock agreement
Explanation:
A rate lock agreement is that exist between the borrower and lender where the borrower is allowed to lock the interest rate on a loan based on prevailing rate for a certain period of time.
This provision protects the borrower from a future rise in interest rate.
Once interest bid locked it is binding on the lender and borrower despite changes in the market interest rate.
However if interest rate falls the borrower may have the opportunity to withdraw the agreement.