Answer:
YTM is 7.46%
Explanation:
Given:
Face value of bond (FV) = $1,000
Years to maturity (nper) = 10
Coupon rate = 10%
Coupon payment (pmt) = $100 (0.1×1,000)
Price of bond (PV) = $1,175
If the bonds are held till maturity, then yield to maturity is calculated using excel function =Rate(nper,pmt,PV,FV)
Yield of bond if held till maturity is 7.46%
Answer:
Reciprocal concessions
Explanation:
Reciprocal concessions also known as the door-in-the-face technique occurs when a person makes an initial large request and then followed up by a smaller request when the first request is not accepted by the responder. The responder then feels obligated to give in by agreeing to the conceded request.
Anya applied the reciprocal concession technique by requesting for $500 from her parents instead of the initial $5000.
To solve this problem, we first make a chart that shows the spending pattern of $90 million over 23 years.
$90 million at 11% = [math]\frac{90 \times 1.11^{23}}{100}=903.478[/math]. The future worth at the end of the 23-year is approximately $903,478.
Since the problem does not provide a standard amount of time that people usually use to measure interest rates, we can infer that this rate should be 10% per year.
Using 10% per year instead of 11%:
$90 million at 10% = [math]\frac{90 \times 1.10^{23}}{100}=897.507[/math]. The future worth at the end of the 23-year is approximately $897,507.
Since the total amount that was spent on development over a period of 23 years is $90 million and the answer in our problem has to be in millions, we have to adjust the amount.
$90 million x 100 = $9 billion. The future worth at the end of the 23-year is approximately 9 billion dollars.
Answer:
B. 4 years
Explanation:
Based on the information given about Tom in which we were been told that he elects the Life Income with a 10 year settlement option in which Tom dies in year 6, this means that
the beneficiary receives payments for 4 years calculater as:
Life Income 10 year Period- The year it took Tom to die which is year 6 which will eventually give us 4 years.
Therefore beneficiary receives payments for 4 years.