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seropon [69]
3 years ago
7

A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. What is the yield to maturity

of the bond? (Round your answer to 1 decimal place.) b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 10%, (ii) 12%, (iii) 14%? (Round your answers to 2 decimal places.)
Business
1 answer:
shutvik [7]3 years ago
8 0

Answer:

Explanation:

Face value = 1000

market price = 1000

annual yield = 106

yield to maturity = (106/1000) x 100

= 10.6 % .

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Which of the following terms refers to the process of converting a not-for-profit stock exchange owned by its members to a for-p
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e. Demutualization

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Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectibl
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Answer:

S/n      Account Title and Explanation      Debit     Credit

a.         Bad Debt Expense                         $5,460

            ($182,000 sales x 3%)

                   Allowance for Doubtful Accounts       $5,460

           (To record bad debt expense)

b.        Bad Debt Expense                         $5,460

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                   Allowance for Doubtful Accounts       $5,460

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4 0
2 years ago
Which component within a corporation elects the board of directors?
dmitriy555 [2]

Answer:

A. shareholders

Explanation:

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What does it mean to provide customer service? PLEASE HELP
stepan [7]

Answer:

Providing excellent customer service means going the extra mile in making sure a customer is happy and satisfied with a company's products or services. It also involves providing service to a customer in a timely, pleasant manner.

8 0
2 years ago
Present values Suppose going to college costs 20,000 a year. The average earnings of a highschool graduate are 20,000 a year. By
o-na [289]

Answer:

Annual benefit from college education (Increase in earnings) = $50,000 - $20,000 = $30,000

<em>Assuming 4 years of college study period</em>

<u>The net present value of a college education if the interest rate is 10% is as follows</u><u>:</u>

Net present value = PV of benefits - PV of costs

Net present value = Annual benefit*P/A(10%,4) - Annual costs of attending college*P/A(10%,4)

Net present value = 30,000 * P/A(10%,4) - 20,000 * P/A(10%,4)

Net present value = (30,000 - 20,000) * P/A(10%,4)

Net present value = 10,000 * P/A(10%,4)

Net present value = 10,000 * 3.1699

Net present value = $31,699

<u>How does this change if the interest rate is 15%?</u>

Net present value  = 30,000 * P/A(15%,4) - 20,000 * P/A(15%,4)

Net present value = (30,000 - 20,000) * P/A(15%,4)

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4 0
3 years ago
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