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Vlad1618 [11]
4 years ago
9

A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $878.31, calculate the yie

ld to maturity of the bond (assuming annual interest payments). Group of answer choices
Business
1 answer:
k0ka [10]4 years ago
7 0

Answer:

Yield to maturity =11.75%

Explanation:

The yield to maturity to Maturity van be worked out using the formula below:

YM =( C + F-P/n)  ÷  ( 1/2× (F+P))

C- annual coupon,

F- face value ,

P- current price,

n- number of years to maturity

YM - Yield to maturity

C- 8%× 1000 = 80, P- 878.31, F- 1000

AYM =  80 + (1000-878.31)/4  ÷  1/2×  (1000+878.31)

        = 110.4225    ÷ 939.155

       = 11.75%

Yield to maturity =11.75%

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Tejas has decided to finance his college education through student loans. He is planning on taking out $100,000 in loans to beco
aleksklad [387]

Answer: A. No, because he is taking out more debt then he will ever be able to pay back.

Explanation:

Getting the finance to foot one's bills could come from many different sources, one of which is to put in for a loan. However, the advice to secure a loan might best be given by a finance expert who has the knowledge and expertise required to adequately access the value of the loan, the probable return on investment and ayher embedded considerations. In the scenario given above, taking out a loan of up to $100,000 in other to target the job of finally landing a teaching job at a nursery school which would on average return a meagre pay than cannot be pitted with the loan value would be considered unreasonable on average by a finance professional simply because the return on investment will probably be nothing near the value of the loan. This way, the debt incurred from due to the loan application may never be returned from the intended job.

4 0
3 years ago
Can I buy 100 stocks?​
Sauron [17]

Answer:

Maybe.

Explanation:

There are a lot factors that go into being able to purchase stocks - but the primary one would be how much money do you have to invest? I'm not sure if the question is asking if you can purchase shares of stock in 100 different companies or if you can purchase 100 shares of one company's stock. Generally speaking, in addition to the cost of the stock, you also have to pay fees in order to purchase (and sell) the stock...but these days it's somewhat possible to avoid the purchase fees with a no fee stock broker...for instance Robinhood. If you want to purchase 100 shares of stock, you need to have the money to afford to purchase it...and you also need to be old enough to open an account with a brokerage service, and you need to not work in certain industries.

7 0
3 years ago
Kroger is a retail food chain with over​ 2,500 supermarkets nationwide. although it does not produce any food​ items, it markets
Marat540 [252]
Kroger is a retail food chain with over 2,500 supermarkets nationwide. Although it does not produce any items, it markets a line of canned and frozen goods carrying the Kroger name. This is an example of product adaptation. 
Product adaptation is the process of adapting an existing product so it is suitable in different customers and markets.
7 0
4 years ago
Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales:
Rom4ik [11]

Answer:

The value of cost of goods sold is $2,730 as shown below

Explanation:

The sale of 120 units made on January 17 is valued at $1,080  (120*$9) taking from stock purchased last on January 1

The sale of 160 units on January 29 is valued at $1,650    (150 units*$11) taking the items purchased last on January 20

The cost of goods sold =$1,080+$1,650

Cost of goods sold=$2,730

The value of closing inventory=30*$9+10*$11

                                                   =$270+$110

                                                   =$380

Hence value of costs of good sold is $2,730 while closing inventory is valued at $380

           

7 0
3 years ago
Elaine sweeney went to ragged mountain ski resort in new hampshire with a friend. elaine went snow tubing down a snow tube run d
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