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NeTakaya
3 years ago
14

Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the exp

ected rate of return under certain assumptions. Which of the following is one of those assumptions?
Business
1 answer:
Snezhnost [94]3 years ago
7 0

Answer:

The response options are:

A) The bond will not be called.

B) The bond has an early redemption feature.

The correct answer is: A) The bond will not be called.

Explanation:

Depending on the internal rate of return (IRR), it is annual (IRR) or semiannual (IRR / m). The calculation of the IRR requires a trial and error process.

The important thing is that this performance measure takes into account not only the interest gain but also the capital gain or loss that the investor can have if he keeps the bond until maturity. In turn, consider the timing of cash flows.

It is noteworthy that the calculation of the IRR falls on 3 fundamental assumptions:

1) That the bond remains until maturity

2) 2) That all bonus coupons are charged

3) That all coupons are reinvested at the same rate.

Therefore, it can be seen that the IRR is an expected return, only if the 3 assumptions mentioned above are met.

While it is difficult for someone to win the IRR, by complying with the above assumptions, something very similar will be gained and is one of the best tools available for calculating performance and making comparisons.

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Andrew Flint is the CEO of a small, publicly held company based in Idaho Falls, Idaho. Flint earned $76,000 last year as CEO. In
Natasha2012 [34]

Answer:

D, Flint can simply write ot the SEC to voice his concerns.

Explanation:

Since Flint does not have a case that warrants a court challenge but rather an observation, Flint can simply write to the SEC to intimate them about his observations and/or findings, as well as let the SEC know the position of his company on the rule being proposed by it.

Cheers.

6 0
3 years ago
The shape of a production possibility curve is downward-sloping because ____________________. Select the correct answer below: y
Afina-wow [57]

Answer:

you can get more of one good only by giving up some of another good

Explanation:

A production possibilities frontier shows the opportunity cost of producing one good instead of another. This way, as you follow the curve, the combination of goods will vary, increasing the production of one good but deceasing the production of the other.

Opportunity costs are the benefits lost or extra costs associated to choosing one activity or investment over another alternative. Since resources are scarce, you must always give something up in order to obtain another thing, e.g. you give up your leisure time in order to study.

8 0
3 years ago
A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured
Dennis_Churaev [7]

A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured as a ________ organization.

A. Functional

B. Balanced matrix

C. Weak matrix

D. Strong matrix

E. Project

A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured using<u> Project organization.</u>

Answer: Option E

<u>Explanation:</u>

Projectized or Project organization as the name suggests, focus on the projects and various process related to those projects. Project organization is different from the rest of the organizations in a sense that it works as a separate unit.

In this type of organizational structure the project manager is on the top and he is the sole decision maker regarding all the projects. The rest of the team members report to the project manager, whereas the roles and responsibilities are divided amongst the members.

4 0
2 years ago
Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end expone
vlabodo [156]

Answer:

21

Explanation:

Given that:

The utility function U(x, y) = x^{0.8} y^{0.2}

The budget line income is:

105=4x +3y

The equation MRTS is:

\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}

where;

MU_x(x,y) = 0.8 \times x^{0.8-1}\times y^{0.2} \\ \\ \implies 0.8 \times x^{-0.2}\times y^{0.2}

MU_y(x,y) = 0.2 \times x^{0.8}\times y^{0.2-1} \\ \\ \implies 0.8 \times x^{0.8}\times y^{-0.8}

and:

P_y= 3

P_x = 4

∴

Using the equation MRTS:

\dfrac{MU_x}{MU_y } =\dfrac{ Px}{Py}

\dfrac{ 0.8 \times x^{-0.2}\times y^{0.2} }{0.8 \times x^{0.8}\times y^{-0.8}} = \dfrac{4}{3}

\dfrac{4y }{x} = \dfrac{4}{3}

4x = 12y

x = 12y/4

x = 3y

Replacing the value of x into the budget line income, we have:

105 = 4x + 3y

105 = 4(3y) + 3y

105 = 12y + 3y

105 = 15y

y = 105/15

y = 7

Then, from x = 3y

x = 3(7)

x = 21

Thus, she will consume 21 gapefruits

5 0
2 years ago
The skills, tools, and processes used to plan, execute, and control the elements of a project are a part of __________.
Musya8 [376]

Answer:

success

Explanation:

3 0
3 years ago
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