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SOVA2 [1]
3 years ago
14

You can buy commercial paper of a major u.S. Corporation for 495000 $ the paper has face value of 500000 $ and in 45 days from m

aturity calculate the Discount yield and bond equivalent yield on the commercial paper
Business
1 answer:
BartSMP [9]3 years ago
7 0

Answer:

Discount yield is 8%

Bond equivalent yield is 8.19%

Explanation:

The discount yield on the commercial paper is calculated as:

(($500,000 - $495,000)/$500,000 ) x (360/45)

= ($5,000/$500,000 x (360/45)

= 0.01 x 8

= 0.08

= 8%

And bond equivalent yield is calculated as:

(($500,000 - $495,000)/$495,000) x (365/45)

= ($5,000/$495,000) x 8.11

= 0.0101 x 8.11

= 0.0819

= 8.19%

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Answer:

Andrew did do a proper feasibility study about the land

Explanation: Andrew lots chunk of money  because he gave out his land half of the price he bought it initially. And bought another at a higher price

which is more than the  10,000 dollars

7 0
3 years ago
The term _______________ refers to a firm operating in a perfectly competitive market that must take the prevailing market price
hoa [83]

The term <u>price taker</u> refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product. Read below about a perfectly competitive market.

<h3>What is a perfectly competitive market?</h3>

In economics, a perfect market is also known as an atomistic market. A effect competition is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition.

Therefore, in such a market the price taker must take the prevailing market price its product.

learn more about price taker: brainly.com/question/15416827

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6 0
2 years ago
Which of the following is the best description of
olganol [36]

Answer:

D. Changing practices superficially to appear more  environmentally friendly to consumers than they  truly are.

Explanation:

Greenwashing is the act of corporate companies in their attempts to convey a false impression to their customers that their products are environmentally friendly. Through this process, they provide misleading information.

Companies provide misleading information to their customers, in making the impression that their products are more environmentally friendly than other products. Thus, <u>greenwashing can be described as changing the practices of the company/ brand superficially so that they appear more environmentally friendly than they really are to customers</u>.

4 0
2 years ago
Which one of the following should earn the most risk premium based on CAPM?
Nina [5.8K]

Answer:

The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.

The correct answer is B

Explanation:

A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.

A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.

A stock with a beta of 0.74 does not provide the highest risk premium.

Us treasury bill does not provide any risk premium since it is the risk-free rate.

A portfolio with a beta of 1.01 does not produce the highest risk premium.

5 0
3 years ago
Marketing by a service firm to effectively train and motivate its customer-contact employees and all the supporting service peop
ikadub [295]

Answer:

Internal

Explanation:

As the name implies, internal marketing is one in which a service firm trains employees in a product's company and its customers' contact to ensure maximum customer satisfaction. Internal marketing means that every member of staff is involved in marketing  and not just the marketing department of the firm.

Cheers.

7 0
3 years ago
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