3 years ago

Stock and bond markets:

Business

1 answer:

olga_2 [115]3 years ago

8 0

Stock markets is a stock exchange and a bond market is where dept securities are issues and traded

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Lisa's opportunity cost rate is 10 percent compounded annually. How much must she deposit in an account today if she wants to re

Goryan [66]

Answer:

Present value = $21,804 (approx)

Explanation:

Given:

Periodic payment = $3,200

Number of period = 12

Interest rate = 10% = 10/100 = 0.1

Present value = ?

Computation of Present value:

$Present\ value = PMT[\frac{1-(1+r)^{-n}}{r} ]\\\\Present\ value = 3,200[\frac{1-(1+0.1)^{-12}}{0.1} ]\\\\Present\ value = 3,200[\frac{1-(1.1)^{-12}}{0.1} ]\\\\Present\ value = 3,200[\frac{1-0.318630818}{0.1} ]\\\\Present\ value = 3,200[\frac{0.681369182}{0.1} ]\\\\Present\ value = 21,803.6188$

Present value = $21,804 (approx)

8 0

3 years ago

An owner of stocks is known as a _____.

user100 [1]

Answer: Investor

I hope this helps and have a wonderful day filled with joy and love!

4 0

3 years ago

Read 2 more answers

Sunk costs and decision making Rajiv has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontran

NikAS [45]

Answer: b.Correctly ignored a sunk cost

Explanation:

Sunk costs are those that are already incurred and should not have any influence on the decision to be made.

The cost of the ticket to the play has already been incurred and could not be sold, exchanged or transferred so was a sunk cost. By going to the concert with Simone, Ravi decided to ignore a sunk cost and he was correct to do so.

3 0

3 years ago

Jerry is a student and is currently on a summer job. He hopes to save $2,000 for his short-, medium and long-term goals. Which o

Goryan [66]

Answer:

allocating funds for buying a new laptop

Explanation:

or A

3 0

2 years ago

Consider two bonds, a 3-year bond paying an annual coupon of 5% and a 10-year bond also with an annual coupon of 5%. Both curren

Schach [20]

Answer:

Bond Price = $875.6574005 rounded off to $875.66

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1,000 * 0.05 = $50

Total periods (n) = 3

r or YTM = 0.10

The formula to calculate the price of the bonds today is attached.

Bond Price = 50 * [( 1 - (1+0.10)^-3) / 0.10] + 1000 / (1+0.10)^3

Bond Price = $875.6574005 rounded off to $875.66

8 0

3 years ago