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Dafna1 [17]
3 years ago
10

Six years ago, Bradford Community Hospital issued 20-year municipal bonds with a 7 percent annual coupon rate. The bonds were ca

lled today for a $70 call premium-that is, bondholders received $1,070 for each bond. What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued
Business
1 answer:
guapka [62]3 years ago
8 0

Answer: the realized rate of return = $105

Explanation:

To calculate the the realized rate of return, first calculate the amount after six years with the premium which is an addition to the principal amount and then calculate the amount when the bond was bought for $1000.

amount at premium of $70( that is principal now is $1070) using compound interest formula: fv= p(1+r)∧n where p = principal=1070,

fv=amount required,r=rate of interest=7%,n=number of years =6,and

∧=raise to power.

fv=1070(1.07)∧6=1605

amount after investors bought it for $1000=1000(1.07)∧6= 1500

realized rate of return= 1605-1500= $105

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When regulators engage in macroprudential regulation, they focus on A. the credit standards of all loans held by the financial i
Agata [3.3K]

Answer:

C) the safety and soundness of the financial system in aggregate.

Explanation:

Macroprudential regulation focuses on reducing systemic risk.

Systemic risk is the financial risk associated with an event from a specific company damaging the whole financial system. Systemic risk was responsible for the collapse leading to the Great Recession (2008-2010).

The "too big to fail" policy is an example of macroprudential regulation.

8 0
3 years ago
Consider a $1200 investment for a new plant that is expected to have a Residual Value of $200 in five years. What is the Salvage
deff fn [24]

Answer:

$173

Explanation:

The computation of the salvage value at the end of year 5 is given below:

Cost of the asset $1,200

Multiply with the depreciation rate 5.76%

Book value at the 5 year end = $69

Resale value $200

gain on sales $131

Multiply with the Capital gain 21%

tax on gain $27

After tax gain on salvage value $173 ($200 - $27)

3 0
3 years ago
The product of 59,736 and 600 is
Juli2301 [7.4K]

Answer:

D

Explanation:

59763*600=35,841,600

6 0
3 years ago
Which economic theory(ies) view(s) mncs as bad for the working class and developing world?
Kaylis [27]

Radicalism is the economic theory that views MNC's as bad for the working class and developing world.

Given that MNC's are viewed bad for the working class and developing world.

We are required to name the economic theory in which MNC's are viewed as bad for the working class and developing world.

The name of the economic theory that views MNC's as bad for the working class and developing world is radicalism. The term radicalism believes that society needs to be changed, and that these changes are only possible through revolutionary means. It is basically a negative theory for the MNC's. They are seem to be bad for the developing countries because they sometimes use the resources of the country out of the limit and in future the country will suffer from the scarcity of resources.

Hence radicalism is the economic theory views MNC's as bad for the working class and developing world.

Learn more about MNC's at brainly.com/question/13312055

#SPJ4

8 0
1 year ago
A bakery would be willing to supply 500 bagels per day at a price of $0.50 each. At a price of $0.80, the bakery would be willin
son4ous [18]

Answer:

1.63

Explanation:

The computation of the pricing elasticity of supply using the midpoint method is shown below:

= (change in quantity supplied ÷ average of quantity supplied) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity supplied would be

= Q2 - Q1

= 1,100 - 500

= 600

And, the average of quantity supplied is

= (1,100 + 500) ÷ 2

= 800

Change in price would be

= P2 - P1

= $0.80 - $0.50

= $0.30

And, average of price would be

= ($0.80 + $0.50) ÷ 2

= 0.65

So, after solving this, the price elasticity of supply is 1.63

6 0
4 years ago
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