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GalinKa [24]
4 years ago
13

Rosita purchased a bond for $989 that had a 7% coupon and semiannual interest payments. She sold the bond after 6 months and ear

ned a total return of 4.8% on this investment. At what price, did she sell the bond
Business
1 answer:
Len [333]4 years ago
3 0

Answer:

The price she sold the bond is $1,001.47

Explanation:

The formula for yield return in given as ;

Yield to maturity= (Annual interest+ per value - market price ÷ numbers of years to maturity)/per value+ market price÷ 2

048 = (Selling price + [(.07 × $1,000)/2] - $989)/$989

Making selling price the subject of formula we have this as the abswer

Selling price = $1,001.47

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The undergrounds coffee shop has total assets of $85,300 and an equity multiplier of 1.53. what is the debt-equity ratio?
ikadub [295]
Let us go to the basic accounting equation: Assets = Liabilities + Shareholder's Equity. The equity multiplier is computed by dividing the total assets with the total shareholders' equity. We know the total assets as $85,3000. Using the formula for the equity multiplier, we can calculate the amount of the shareholders' equity. The given equity multiplier is 1.53. To calculate the shareholders' equity, we just have to divide the $85,300 (total assets) with 1.53 (equity multiplier). We can get the amount of $55,752. Using the accounting equation, we can compute <span>the amount of liabilities as $29,548. The formula to get the debt-equity ratio is dividing the total shareholder's equity by the liabilities. $55,752 divided by $29,548, we can get 1.89 as the debt-equity ratio.</span>
4 0
3 years ago
I am considering buying a new sports car like a Ford Mustang. Another sports car that would not likely compete head-to-head like
AURORKA [14]

Answer:

Brand Competition

Explanation:

Brand Competition arises when two or more different companies offer a similar product, under a different brand. The products are similar, but not fully substitutes: they can be distinguished in some way: quality, features, price, and so on.

In this case, what makes the Ford Mustang and the Audi R8 is the price. The Ford brand is significantly cheaper than the Audi brand, which might give Ford the upper hand in market share. However, this is not always the case because the Audi car could have the upper hand when it comes to quality, and obtain more marke share because of that.

5 0
3 years ago
Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2018, the adjusted basis in her YZ interest was
strojnjashka [21]

Explanation:

Total loss the company did in was 210,000

Amount of loss going to Zelda's head would be

= (210,000) * 60%

= 126,000

Earnings share for Zelda in 2018

14,600 * 60% = 8760

6,200 * 60% = 3720

And 95,000

Zelda’s adjusted basis in her YZ interest before loss deduction  in 2018 would be

= 95,000 + 8760 + 3720

= 107,480.

Zelda’s adjusted basis in her YZ interest at the end of 2018 after loss deduction would be zero or nill

5 0
3 years ago
If inflation expectations increase, but the return on money doesn’t, people will want to hold less money, ceteris paribus, becau
11Alexandr11 [23.1K]

Answer:

TRUE

Explanation: If the return on money does not rise in relation to the expectation of a rise in inflation, people will have less need to keep more money with them, if other factors remain constant (ceteris paribus) the relative return on goods such as Land,gold,turnips,buildings etc and other non financial items  will increase. This situation tries to show the relationship between a rise in inflation and a rise in non financial items this tries to explain the MONEY THEORY.

6 0
3 years ago
A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume an
Mamont248 [21]

Answer:

bondholders will receive 8% of $1,000 = $80

Explanation:

The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.

The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.

8 0
3 years ago
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