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Pepsi [2]
3 years ago
6

A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The

actual yield to maturity on this bond is _________.
Business
1 answer:
jarptica [38.1K]3 years ago
3 0

Answer:

Actual Yiel to maturity is 9.3%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 4% = $40

Selling price = P = $785

Number of payment = n = 5 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $40 + ( $1,000 - $785 ) / 5 ] / [ ( 1,000 + $785 ) / 2 ]

Yield to maturity = [ $40 + $43 ] / $892.5  = $83 /$892.5 = 0.0645 = 0.093%

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The following events result in a tax. Which is an example of a direct tax?
Komok [63]

Answer:

Javier owes money to the federal government based on his earnings.

Explanation:

Direct taxes are levied directly on the income of an individual or a business. Javier pays income tax on his earnings which is classified as a direct tax. Other examples of direct taxes include corporate tax and property tax.

All other options are examples of indirect tax as they are being levied on goods and services. Such taxes are usually included in the price. For e.g. General sales tax and value added tax.

5 0
3 years ago
Carlos and Devon both accepted new jobs at different companies. Carlos's starting salary is $42,000 and Devon's starting salary
Yakvenalex [24]

Answer:

By comparing the Z-values both are below the average salary in their firms but Devon is even lower as as 1.60 below the mean

Carlon has a better comparative salary as is 1.25 points below the mean

Explanation:

we have to normalize each distribution to know the Z-values for Carlos and Devon:

\frac{X-mean}{deviation} =Z

<u>Carlos:</u>

(42,000 - 52,000)/8,000 =-1.25

<u>Devon:</u>

(40,000-48,000)/5,000 = -1.60

4 0
3 years ago
The world intellectual property organization requires that e-businesses comply with the laws of ________.
vampirchik [111]

The world intellectual property organization requires that the e-business comply with the laws of the country in which they are based because of the reason that the e-commerce company should comply with the laws of its own or home country which is simplified by the WIPO.

5 0
3 years ago
Waterway Industries is planning to sell 800 buckets and produce 1080 buckets during March. Each bucket requires 200 grams of pla
Scrat [10]

Answer:

See below

Explanation:

From the above,

One bucket requires;

200 grams of plastic and one half of direct labor

The plastic costs $10 per 200 grams and the employees are paid $15 per hour.

Therefore, one bucket costs (material and labor) :

= $10 + $15 × (1/2)hour = $17.5 per plus 1.10 × $7.50 = $25.75

For 1,080 buckets

$25.75 × 1,080 = $27,810

Therefore, the total amount of budgeted direct material for March is $27,810

5 0
3 years ago
You have saved​ $120,000 for your child to attend college. If it is in an account earning an annual rate of​ 8%, how much can yo
harkovskaia [24]

Answer:

I will take $36,230.5 to pay for the education of child.

Explanation:

Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.

We will use following formula to calculate the annual payments

P = r ( PV ) /  [ 1 - ( 1+ r )^-n ]

where

PV = amount of investment = $120,000

r = rate of return = 8%

n = number of period = 4 years

P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]

P = 36,230.5

3 0
3 years ago
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