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Sonja [21]
3 years ago
12

One year ago, you purchased a 6 percent coupon bond with a face value of $1,000 when it was selling for 98.6 percent of par. Tod

ay, you sold this bond for 101.2 percent of par.
What is your total dollar return on this investment?
$86$74$82$60$64
Business
1 answer:
lutik1710 [3]3 years ago
4 0

Answer:

option (A) $86

Explanation:

Data provided in the question:

Coupon rate = 6%

Face value of bonds = $1,000

Purchasing price (i.e the selling percentage at the time of purchase )

= 98.6% of par

Selling price = 101.2% of par

Thus,

Annual Coupon payment = Face value × Coupon rate

= $1,000 × 6%

= $60

Now,

Purchase price = $1,000 × 98.60%

= $986

Sales price = Face value of bonds × Selling price

= $1,000 × 101.20%

= $1,012

Therefore,

Total dollar Return

= Sales price + Annual Coupon payment - Purchase price

= $1,012 + $60 - $986

= $86

Hence,

The correct answer is option (A) $86

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denpristay [2]

Answer:

$ 74.23

Explanation:

We are given the following:

mean, μ = $ 104.50

standard deviation, σ = $ 23.62

Using the z-score table, we have

P(Z < z) = 10%  (since we are evaluating lowest 10% of values)

hence P(Z < z) = 0.10

P(Z < -1.282 ) = 0.10

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Using z-score formula,

x = z *σ + μ

substituting the values,

x =- - 1.282 * 23.62 + 104.50

= 74.23

The most for the stock is $ 74.23

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Suppose that the price of sushi take-out, a substitute, decreases in price. what will happen to the demand for chinese take-out?
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Explanation:

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Just-in-time management is a philosophy, not a method. If the "customer" is the eventual consumer of the product or a process further along the production line, the term originally referred to the manufacturing of goods to precisely fulfill customer demand in time, quality, and quantity.

By minimising the time and resources needed for production operations, JIT increases productivity. More rapid product production is possible thanks to manufacturers.

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