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Tasya [4]
3 years ago
13

What is the yield to maturity of a bond that as a face value of $1,000, is currently selling for $980, has a 5% coupon (paid sem

i-annually) and matures in 5 years.

Business
1 answer:
Ghella [55]3 years ago
7 0

Answer:

5.47%

Explanation:

The computation of yield to maturity is shown in the attachment:

Given that

FV = $1000

PV = ($980)

PMT = 5% ÷ 2 × 1,000  = $25

Number of years = 5 years × 2 =  10 Years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the yield to maturity is

= 2.73 × 2

= 5.46%

Therefore with the help of spreadsheets (as attached),  we could explain in a better manner.

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To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and
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To partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is commonly evaluated through (E) post audits.

<h3>What are post audits?</h3>
  • The post-audit procedure establishes a formal process (feedback) for assessing whether existing initiatives should be continued, extended, or discontinued.
  • That is, the post-audit gives useful information that can be used to fix problems before an investment's performance is jeopardized.
  • The purpose of the post-audit review process is to ensure that management has addressed all of the recommendations given in the Audit Report.
  • The Post-Audit Review occurs shortly after the agreed-upon implementation deadline, which management committed to in the management response.

Therefore, to partially eliminate the problems that are associated with the short-term focus of return on investment, residual income, and EVA, the performance of a division's major investments is commonly evaluated through (E) post audits.

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7 0
2 years ago
Process redesign: a. is the fundamental rethinking of business processes. b. is sometimes called process reengineering. c. tries
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Answer:

e. All of these is the correct answer.

Explanation:

  • Process Redesign is an approach of rethinking and recreating the business processes to improve product quality, reduce cost and improve the output and also to bring improvements in the performance.
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When a producer offers a prospective insured a portable dishwasher as a bonus for purchasing a policy, he/she could be guilty of
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The correct answer to the following answer will be Rebating.

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Rebating: It is a manner to get potential insurance customers to purchase the insurance product by returning their money to the broker or agent. The insurance company can even offer premium or even donation discounts. Insurance regulators do not find this to be a good exercise since unfair competition can grow and insurance insolvency can occur.

Therefore, Rebating is the correct answer.

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3 years ago
The records of penny Co. Indicated that 415,000 of merchandise should be on hand December 31. The phyiscla inventory indicates t
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Answer:

See explanation section

Explanation:

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