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GREYUIT [131]
3 years ago
5

.In 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value

in 2037. What annual rate of return will you earn over the last 10 years
Business
1 answer:
cricket20 [7]3 years ago
5 0

Answer:

The question is not complete,find below complete questions:

If you purchased a $50 face value bond in early 2017 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2027? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2027, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2037. What annual rate of return will you earn over the last 10 years?

The bond is worth $50.50 in the year 2027

The annual rate of return is 7.07%

Explanation:

The future value of the bond is given by the below formula:

FV=PV*(1+r)^N

where PV  is the present of the bond of $50

r is the rate of return of 0.10 percent=0.001

N is the duration of the bond investment of 10 years

FV=50*(1+0.001 )^10

FV=$50.50

However for the face of the bond to double i.e to $100, the rate of return can be computed thus:

r=(FV/PV)^(1/N)-1

where FV=$100 (double of $50)

FV=$50.50(current value in 2027)

N=10

r=($100/$50.50)^(1/10)-1

r=0.070707543

r=7.07%

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b)

Explanation:

Based on the scenario being described within the question it can be said that the most efficient fix for this error would be to use Find and Replace. This is a feature that allows you to type the error that you made, and the console will find every instance of that error throughout the entire document and change each iteration to whatever you want.

4 0
3 years ago
The two most common receivables are receivables and receivables.
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Accounts receivable and notes receivable
8 0
2 years ago
The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complet
Masja [62]

Answer:

450,000 units

Explanation:

This question asks to calculate the equivalent units of materials. It must be known that equivalent units are calculated by multiplying the number of physical units by percentage of completion.

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Mathematically, the equivalent units for materials = started into production + Beginning work in process

= 25,000 units + 425,000 units = 450,000 units

8 0
3 years ago
On December 31 of the current year, Plunkett Company reported an ending inventory balance of $211,500. The following additional
Aloiza [94]

Answer:

$153,900

Explanation:

Calculation the amount that Plunkett should report in ending inventory on December 31

31 December Ending Inventory=$211,500 - $43,300 - $14,300

31 December Ending Inventory=$153,900

Therefore the amount that Plunkett should report in ending inventory on December 31 is $153,900

6 0
3 years ago
A researcher is asked to determine whether or not a productivity objective (in dollars) of better than $75,000 per employee is p
exis [7]

Answer:

Hence the null hypothesis is not rejected.

We conclude that productivity objective (in dollars) is not better than $75,000 per employee.

Explanation:

Single sample t-test ( upper tail test)

H_0: \mu = 75000\\H_1: \mu > 75000

N=20

Mean =75500

Sd=18968.117

t = \frac { (\bar x - \mu)} {\frac {s} {\sqrt{n}}}\\\\t = \frac{(75500-75000)}{\frac{18968.117}{\sqrt{20}}}\\t=0.1179

DF= 20-1=19

Table value of t at 0.05 level of significance =1.7291

Calculated t=0.1179 < table value 1.7291

The null hypothesis is not rejected

We conclude that productivity objective (in dollars) is not better than $75,000 per employee

4 0
2 years ago
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