If you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.
<h3>What is the yield to maturity?</h3>
The yield to maturity (YTM) refers to the total rate of return earned by a bond when it makes all interest payments and repays the original principal.
YTM is equal to a bond's internal rate of return (IRR) if the bond were held to maturity.
<h3>Data and Calculations;</h3>
Face value of security = $500
Price paid today = $455
Yield to maturity = (Face Value/Current Price) x (1/Years to Maturity) - 1
= $500/$455 x 1/1 - 1
= 0.0989
OR
Yield in dollars = $45 ($500 - $455)
= 0.0989 ($45/$455 x 100)
Rate of return = 9% ($45/$500 x 100)
Thus, if you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.
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Answer:
hen you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Explanation:
Answer: The mean income of the three people surveyed is $33,000.
The mean or average of a data set is nothing but the sum total of all the observations in a given set of data divided by the number of observations.
The formula for calculating the mean is:
where
is the mean or average
X₁ , X₂, X₃ .......Xn refers to the observations
N is the total number of observations
Substituting the values in the formula for mean we get,
Answer:
I will take management courses at a local business college so that I will be promoted to bank manager in less than five years.
Explanation:
B. Economists have different values and scientific judgment. Economists exercise both subjective and objective judgments about data that they collect and observations that they make. These values and judgments differ among economists which can affect their advice or opinions, sometimes leading to conflicting advice.
