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maks197457 [2]
3 years ago
12

A bond investor buys a municipal bond with a face value of $100,000 and a 3% coupon. The bond matures in one year. The investor

pays $99,500 for the bond which includes accrued interest. To the nearest 1/10 of 1%, what will be the total return on the bond at maturity?
Business
1 answer:
Marat540 [252]3 years ago
7 0

Answer:

3.5%

Explanation:

The formula to calculate total return is: Profit/Original Cost. 100,000 x .03 = $3,000 interest. $3,000 interest + 100,000 principal = 103,000 cash flow. $103,000 - 99,500 = $3,500 gain. $3,500 gain/$99,500 cost = .03518. .03518 = 3.5%

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Compute cost of goods sold using the following information: Finished goods inventory, beginning $ 540 Cost of goods manufactured
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American Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, t
mezya [45]

Answer:

7.71%

Explanation:

Calculation to determine the bond's nominal coupon interest rate

First step is to determine the PMT using Financial calculator

FV = $1,000

N= 25 × 2 = 50 periods ( semi-annual)

i/y=9.25/2=4.63

PV= - 850

PMT=?

Hence,

PMT=38.55

Second step is to calculate the Annual coupon Payment

Annual coupon Payment =38.55x2

Annual coupon Payement= 77.10

Now let determine the bond's nominal coupon interest rate using this formula

Nominal coupon rate= Annual coupon payment/par value

Let plug in the formula

Nominal coupon rate=77.10/1000

Nominal coupon rate=7.71%

Therefore the bond's nominal coupon interest rate is 7.71%

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What is progressive tax and what is it based on?
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A progressive tax takes a larger percentage of income from high income groups than from low income groups and is based on the concept of ability to pay.

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Jan has just found out that she has been appointed to raise and provide the personal care of the children of her best friend in
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Jan has just found out that she has been appointed to raise and provide the personal care of the children of her best friend in her will. Jan considered in this will as guardian.

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A guardian is normally a close blood relative of the kid. this is usually a person who has spent some time with the kid, has some emotional or relational connection to them, and is acquainted with the kid's needs. this will be the kid's grandparent, aunt/uncle, or different relative.

What is a guardian for a kid?

A guardian is a person who has the legal authority to attend to a baby have to whatever appear to the parents. Guardians are answerable for taking all parental choices and can also be chargeable for coping with a toddler's property and inheritance.

Why might a infant want a guardian?

A child guardian will be needed in a toddler matter wherein the pursuits of the kid won't be represented. this may generally occur when the social services are involved in the court cases and there is an problem with the dad and mom potential to appearance after the wishes and interests of the kid.

Learn more about guardian here:- brainly.com/question/27768834

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