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WINSTONCH [101]
2 years ago
12

Suppose the U.S. Treasury offers to sell you a bond for $687.25. No payments will be made until the bond matures 5 years from no

w, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price
Business
1 answer:
pantera1 [17]2 years ago
5 0

Answer:

6%

Explanation:

Data provided as per question is as given below:-

Redeemed amount = $1,000

Sale value of Bond = $687.25

Number of year = 5

The computation of interest rate is as shown below:-

Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1

= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1

= (1.338) ^ (0.2) - 1

= 0.06

= 6%

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Readme [11.4K]

Answer:

The credit card is the most effective method of payment.

Explanation:

The store will not ship the item until the payment is accredited to their account. Because of this, Jill needs to pick the payment  method that have the fastest clear time.

The Check: usually takes about two business days for a deposited check to clear.

Money Order: It depends on the bank. Some banks allow for money orders to be cleared and deposited almost immediately, and some require at least one business day for it to clear.

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The obvious choice is Credit Card payment for the instant clear of the funds in the store account.

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3 years ago
Ocean City Kite Company sells kites for $11.50 per kite. In FY 2019, total fixed costs are expected to be $250,000 and variable
Dmitry_Shevchenko [17]

Answer:

40,000 kits

Explanation:

The computation is shown below:

Number of kits required to be sold to meet the goal = Total Contribution Margin Required ÷ Contribution Margin per Unit

where,

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And, the

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= $11.50 - $3

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So, the number of kits required is

= $340,000 ÷ $8.50

= 40,000 kits

8 0
3 years ago
Underline all of the following costs that are included in the cost of land.
Vladimir [108]

Answer:

a) Removal of unwanted buildings

d) Brokerage commission

e) Survey fees and legal fees

f) Purchase price

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