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GarryVolchara [31]
3 years ago
15

Acme Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10% with interest paid annually,

and a par value of $1,000. If the current market price of the bond issue is $814.45, what is the yield to maturity, rd
Business
1 answer:
zaharov [31]3 years ago
3 0

Answer:

14%

Explanation:

Using the equation,

1. c(1 + r)/1 + c(1 + r)/2 + . . . + c(1 + r)/Y + B(1 + r)/Y = P

where

c is annual coupon payment (in dollars, not a percent)

So c = 10% of $1000

=$100

Y is number of years to maturity = 8

B is par value =$1000

P is purchase price $814.45

r is yield to maturity, rd

Therefore substitute the values

100(1+r)/1 + 100(1+r)/2 + 100(1+r)/3 + 100(1+r)/4 + 100(1+r)/5 + 100(1+r)/6 + 100(1+r)/7 + 100(1+r)/8 + 1000(1+r)/8 = 814.45

yield to maturity, rd =14.00%

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Digitec Company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make IT avai
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Answer:

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Explanation:

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Digitec Company developed a very cheap laptop and will sell it on extremely poor areas. Usually a product developed specifically for this type of strategy wouldn´t be able to sell well in a richer market. For instance, not very many people would buy a $50 laptop in the US or Europe, since it probably doesn´t have the same technical specs as the rest of the competition.

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4 years ago
The cost to rent skis at a local sporting goods store is $15 plus $20 per day. Which equation models the relationship between th
Lina20 [59]

The cost of renting the skies at a local sporting goods store is given and we have to find the suitable equation which supports the given data.

Given

cost of renting is $15

Per day cost $20

<h3>Fixed and Fluctuating cost</h3>

The renting cost is $15 and is a fixed cost which will remain constant i.e. $15 , no matter you rent skies for how many days.

The cost per day for renting skies is a fluctuating cost and it  will change with the change in number of days.

The equation should be c = 20d + 15

where;

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Therefore the equation that  models the relationship between the total cost to rent, c, and the length of the rental in days, d is "c = 20d + 15" and OPTION C is correct.

Learn more about cost here:

brainly.com/question/1169670

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Answer: I think the answer is D).

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If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 101st unit of good X
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Answer:

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