Answer:<em>9.5354% or 9.6%</em>
Explanation:
<em>PMT = coupon (interest) payment = 12.2 % * $1,000 = $120</em>
<em>Let t = time left until bond is called = 10 years
</em>
<em>Let F be the face value = $ 1,100 ($ 1,000 + $ 100 (Call premium))</em>
<em>Let the Current bond price = 110 % x 1,000 = $1,100</em>
<em>Now,</em>
<em>The bond price is = PMT x 1-( 1 + r )⁻t / r + F/(1 + r )t</em>
<em>Therefore,</em>
<em>1100 = 100 x 1 - (1 + r)⁻¹⁰/r + 1100/(1 + r)¹⁰</em>
<em>Using the trial and error method,</em>
<em>r= 9.5354%</em>
<em>Then the yield to call (YTC) = 9.5354</em>
9.5354%
Answer:
1. By consulting the people who have purchased shoes and groceries recently, calling them or checking out their website for these information.
2. I would not be willing to travel far based on losses I might incur.
3. I would not save any money.
Explanation:
How would you find out where the shoes and groceries are?
Marketing Intermediaries help in effective delivery of products and services from the end of producers to the other end of consumers.
Since the marketing intermediaries have been eliminated, I would have to find out where the products groceries and shoes are manufactured or where the nearest wholesaler is. I can either inquire from friends and from people who have purchased shoes recently, call the company or check out their website for these information and also inquire from farmers in my area for groceries. It is highly likely that the manufacturers of shoes and groceries are far from where I live.
How far would you have to travel to get them?
Depending, on the distance of manufacturers and farmers to where I live but at the end of the day it will cost me more on time and gas going from one manufacturer and/or farmer to the other. I will end up not going that far to get them.
How much money do you think you'd save for your time and effort?
I would not save but lose money for my time and effort. The money that the marketing intermediaries would have helped me saved is what I would have spent in the search of manufacturers and farmers.
Answer:
7.14%
Explanation:
Tax rate applicable for John Richards =30%. So, Post Tax profit for corporate bond will be 70% (1 - 30%) of profit.
Required post tax profit from Corporate Bond is 5%.
Required pretax profit from Corporate bond = 5%/70% = 0.071429 = 7.14%
Therefore, to get 5% post tax profit from corporate bond, the interest rate needs to be set on 7.14% to produce the same amount of usable (after-tax) income.
Answer:
i dont knowpls mark me as brinlest
Explanation:
Firefighter in my personal opinion
