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Andreyy89
3 years ago
15

A municipal dealer quotes a 2 year, 8% term revenue bond at 106. The yield to maturity is:________

Business
1 answer:
Karolina [17]3 years ago
7 0

Answer:

Yield to maturity = 4.85%

Explanation:

Municipal dealers are dealers that are registered to buy and sell municipal bonds on behalf of clients.

Yield to maturity is defined as the internal rate of return on a purchased bond

The formula is given as

Yield to maturity = $80 - ($60 premium / 2 years to maturity) ÷

($1,060 + $1,000) / 2

Yield to maturity = ($80 - $30) ÷ 1,030

Yield to maturity = 50 ÷ 1,030 = 0.0485 = 4.85%

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An automobile battery manufacturer offers a 39/50 warranty on its batteries. The first number in the warranty code is the free-r
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Answer:

1)

If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.

Option a) 8.23% is the correct option

2)

the required standard deviation is 3.8

Option a) 3.8 is the correct answer

Explanation:

Given the data in the question;

mean μ = 44

standard deviation σ = 3.6

if a battery fails within 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 months

1)

If the manufacturer's assumptions are correct, it would need to replace_____ of its batteries free of charge

p( X < 39 ) = P( X-μ/σ < 39-μ/σ )

we substitute

= p( Z < ((39-44)/3.6 ))

= p( Z < -1.39 )

from standard normal table; p( Z < -1.39 ) = 0.08226 ≈ 0.0823

p( X < 39 ) = 0.0823 or 8.23%

Therefore, If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.

Option a) 8.23% is the correct option

2)

The company finds that it s replacing 9.34% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its batteries is incorrect. A standard deviation of ______ results in a 9.34% replacement rate.

given that;

P( Z < x-μ/σ ) = 9.34%

⇒ P( Z < 39-44/σ ) = 0.0934 ----- let this be equation 1

now, from standard normal tables

∅( -1.32 ) = 0.0934   ---------- let this equation 2

so from equation 1 and 2

39-44/σ = -132

-5/σ = -1.32

σ  = -5 / - 1.32

σ  = 3.7879 ≈ 3.8

Therefore, the required standard deviation is 3.8

Option a) 3.8 is the correct answer

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Outdoor Company is located in Kirkland, Washington, where the city and the state have minimum wage laws. Outdoor pays its starti
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The company will have the pay the minimum wage that is the highest because they are under the authority of all three governments and paying the highest minimum wage would ensure that they automatically follow the minimum wages set by the other two authorities.

For instance; the federal minimum wage is $7.25 per hour, the state minimum wage is $10 per hour and the city minimum is $12 per hour. When the company pays $12 an hour, they would be adhering to the city minimum and automatically adhering to the Federal and State minimums as well.

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Answer:

False

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