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Dafna1 [17]
2 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]2 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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Answer:

The answer is: B) concentrated/niche marketing

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Niche (or concentrated) marketing concentrates all of its actions and promotions on small but very specific and well defined segments of the population. A niche marketing strategy focuses on becoming a big fish on a small pond, and usually charging a higher price for the niche product. The specific needs and requirements of those "niche customers" are usually not well addressed by mass marketing actions.

6 0
3 years ago
According to liquidity preference theory, the money-supply curve would shift rightward a. if the Federal Reserve chose to increa
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According to liquidity preference theory, there is a rightward shift in the money supply curve when the federal reserve decides to raise the money supply.

Option A is the correct answer.

<h3>What is a federal reserve?</h3>

The federal reserve is the central banking authority in America which was established in the year 1913 under the Federal Reserve Act.

When the federal reserves increase the money supply then the money supply curve moves in the right direction and when the federal reserve decreases the money supply then the money supply moves toward the left. This shows a direct relationship between the federal reserve and the money supply curve.

Therefore, there is a rise in money supply by the Federal reserve causing the money supply curve to shift in the right direction.

Learn more about the rise in money supply in the related link:

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4 0
2 years ago
What is an important task for a manager of a condominium or cooperative?
Arte-miy333 [17]
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3 years ago
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Alenkasestr [34]

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Total cost is the sum of fixed and variable cost. average total cost is total cost / quantity produced.

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I hope my answer helps you

5 0
3 years ago
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stiv31 [10]

Answer:

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