1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Delvig [45]
3 years ago
12

A $1,000 face value bond has a coupon rate of 7 percent, a market price of $989.40, and 10 years left to maturity. Interest is p

aid semiannually. If the inflation rate is 2.2 percent, what is the yield to maturity when expressed in real terms

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

Answer:

4.95%    

Explanation:

For computing the yield to maturity when expressed in real terms, first we have to find out the yield to maturity by applying the RATE formula that is shown in the attachment

Given that,  

Present value = $989.40

Future value or Face value = $1,000  

PMT = 1,000 × 7% ÷ 2 = $35

NPER = 10 years × 2 = 20 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  the yield to maturity is 7.15%    

Now in real terms, it would be

= 7.15% - 2.2%

= 4.95%    

You might be interested in
A study was done of all homicide convictions in the State of Florida between 1976 and 1980 in order to examine if the applicatio
saw5 [17]

Answer and Explanation:

This is an example of Simpson’s paradox

8 0
3 years ago
Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in it
Marina86 [1]

Answer:

The cost of units transferred out during the month was:$ 99980

Explanation:

Mundes Corporation

Current Costs Added

Units Transferred  Costs $ 90480

Materials =8700 * $ 4.7= $ 40890

Conversion= 8700* $5.70= $ 49590

Costs from Preceding Department (WIP beginning Inventory)= $ 9500

Total Costs= Costs Added + Costs from Preceding Department

                  = $ 90480+ $ 9500= $ 99980

The Costs of units transferred out is $ 99980

The current costs are added to the preceding costs to get the total costs of the units transferred out.

7 0
3 years ago
Jay is an 21 year old college senior. He reads on a financial blog that interest rates are being lowered by the Federal Reserve.
IceJOKER [234]

Answer:

A.

Explanation:

6 0
3 years ago
Read 2 more answers
2.Think of two investment opportunities and compare them to each other. Give a brief outline of what they are, how they work, an
Eddi Din [679]
So lets say we have two investment opportunities. A new convenient store in your neighborhood or a new shopping center more than 5 miles away from where you live... What would you invest in well lets look at the pros and cons of each investment. So even though the new convenient store is right around the corner from you and prices are low the new shopping center has better products, warranty and higher prices unlike the convenient store closer to you. So we have an investment budget of $1000 dollars and want to spend it wisely we need to access what has a better chance of being successful with what you put into it. So the convenient store will reach less people has a bargain price but also doesn't have security cameras. Even though the shopping center has great employees, top-of-the-line products, high security, and a great establishment but also has flaws. What are you gonna invest in,  will you take risks? My personal opinion is that I would invest in the shopping center because more people would be attracted to it because of the quality of service and products. So it would have a better probability in success and good use of my money. 
4 0
3 years ago
Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the
omeli [17]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Month - Lease cost - Machine hours

April: $15,000 - 800

May: $10,000 - 600

June: $12,000 - 770

July: $16,000 - 1,000

Using the high-low method, first, we need to determine the unitary variable cost. We need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (16,000 - 10,000) / (1,000 - 600)

Variable cost per unit= $15 per unit

Now, we can calculate the fixed costs:

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 16,000- (15*1,000)

Fixed costs= $1,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 10,000 - (15*600)

Fixed costs= $1,000

6 0
3 years ago
Other questions:
  • Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
    5·1 answer
  • After several years with the publishing house that Jessica started at after college, she has been promoted to manager of the fic
    11·1 answer
  • __ means responding to pressure after a problem has arisen
    14·1 answer
  • ​recently, amazon.com has been accused of​ __________, which is the practice of selling products below cost to harm competitors.
    7·1 answer
  • A fruit company has 20% returns in periods of normal rainfall and –3% returns in droughts. The probability of normal rainfall is
    15·1 answer
  • NewLinePhone Corp. is very risky, with a beta equal to 2.8 and a standard deviation of returns of 32%. The risk-free rate of ret
    8·1 answer
  • ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and
    8·1 answer
  • Joanna and her husband went to have dinner at their favorite restaurant- the Big Bite. They ordered the food, enjoyed the food,
    14·1 answer
  • Help help help help help help
    13·1 answer
  • Bakers are much likely to supply pastries to the market if property rights are not enforced. True or false?.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!