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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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A company invests $40,000 in a project with the following net cash flows: Year 1: $3,000 Year 2: $8,000 Year 3: $14,000 Year 4:
hram777 [196]

Answer:

the payback period is 3.34 years

Explanation:

The computation of the payback period is as follow;

Given that

Year       Cash flows         Cumulative cash flows

0             -$40,000           $-40,000

1               $3,000              $3,000

2              $8,000              $11,000

3              $14,000             $25,000

4              $19,000             $44,000

5              $22,000            $66,000

6               $28,000           $94,000

Now the payback period is

= 3 years +  ($40,000 - $25,000) ÷ $44,000

= 3 years + 0.34

= 3.34 years

Hence, the payback period is 3.34 years

8 0
3 years ago
As you move through your professional career, you will receive requests for favors and contributions. You will not be able to ho
Sergio [31]

Answer:

The correct answer is letter "C": use the indirect strategy.

Explanation:

While giving messages there are two main approaches: <em>the direct </em>and <em>indirect strategy</em>. The direct strategy is used when the main idea of the message is given at the beginning of the speechy to impact or shock the audience. Details of the idea are provided subsequently. The indirect strategy, instead, starts by providing the details to the audience to finally come up with a conclusion.

Thus, <em>while providing refusals, it is more appropriate to use the indirect strategy so customers will know the reason for the non-approval to confirm the negative news at the end.</em>

3 0
3 years ago
Consider a market​ where: Consumer surplus is 250 Producer surplus is 125. If both consumer surplus and producer surplus are​ ma
mario62 [17]

Answer:

A. Deadweight loss = 125 units.

B. Deadweight loss = 25 units.

Explanation:

In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.

The amount of welfare lost is measure by the difference between consumer and producer surplus.

In the first case:

|Consumer surplus - producer surplus| = 25 units

|250- 125| = 125 units

And in the second case:

|180- 155| = 25 units

5 0
3 years ago
In which stage would you typically expect to see large negative Financing Cash Flows?
kvasek [131]

Answer:

a. Startup

Explanation:

  • The negative cash flows are when the firms are having more cash outflow than the cash inflow and spending of the company is more than the earning and thus experiencing a negative cash flow.
  • This is a situation is found in the growth phase as they demand more money to generated and spend money to fuel growth and acquire the new customers and that may be set up by the distribution channels.
  • Thus startup of the company or industry can show more negative cash flows.
4 0
3 years ago
Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.
Step2247 [10]

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

4 0
2 years ago
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