Answer:
HPR = 0.371%
Explanation:
we must first determine the price of the bond in 1 year:
present value of face value = $1,000 / (1 + 6.25%)⁶ = $695.07
present value of coupon payments = $52.50 x 4.87894 (PV annuity factor, 6.25%, 6 periods) = $256.14
market price in 1 year = $951.21
since you bought the bond at face value (market value = YTM), the the holding period return is:
HPR = [(ending price - actual price) + dividends received] / actual price
HPR = [($951.21 - $1,000) + $52.50] / $1,000 = $3.71 / $1,000 = 0.371%
Answer:
B)The cost of energy for a company can be both a fixed cost and a variable cost.
Explanation:
Energy is a fixed cost because it is an utility that companies have to pay regardless of the level of production; they need energy to function.
Energy is a variable cost because energy is an input to production, and the amount of energy used (and hence its cost) can vary a lot depending on how much output is produced. In the question, ethanol is referenced, which is also a type of variable cost, because it is an energy source that depends on another input (corn), and its used as a substitue for gasoline.
D. Resourcefulness; if you can pick more than one than also chose A. Confidence.
Answer:
The final value of the investment after 3 years is $7,146.10
Explanation:
Giving the following information:
Investment= $6,000
Interest rate= 6% compounded annually
The number of years= 3 years.
To calculate the final value, we need to use the following formula:
FV= PV*(1+i)^n
FV= 6,000*(1.06^3)
FV= $7,146.10
The final value of the investment after 3 years is $7,146.10
