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Ivahew [28]
3 years ago
10

Exactly three years ago, you purchased a $1,000 face value bond for $1,211.16. The coupon rate was 6.5 percent with interest pai

d semiannually. Today, you sold that bond for $1,089.54. What was your rate of return for the 3- year period, or holding period yield, on this investment
Business
1 answer:
solniwko [45]3 years ago
6 0

Answer:

The rate of return on this investment is 6.06%

Explanation:

Rate of return or holding period return is the rate of income earned during the period in which the investment is held. It includes any income in the form of interest received or dividend and price difference.

Interest received  during 3 years = 1,000 x 6.5% x 3 = $195

Price difference = Current price  - Initial Price = 1089.54 - 12,11.16 = -121.62

Rate of return = ( ( Income received + Price change ) / Initial price ) x 100

Rate of return =  ( ( $195 + (-121.62) ) / 1211.16 ) x 100

Rate of return  = ( $73.78 / $1,211.16 ) x 100

Rate of return = 0.0606

Rate of return = 6.06%

Holding period return is 6.06%

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Mark Adler earned $1,963.71 salary per month as an assistant technician at a recording studio. His new job pays $9.80 per hour w
NikAS [45]

Mark Adler will have to work 133.59 hours of overtime per week to earn the same amount at his current job.

<h3>Word problems in algebra?</h3>

Word problems in algebra involve the use of mathematical models and variables to solve them. We use a careful and effective method to interpret the variables.

  • In Mark Adler's current job, it was noted that he earns $1963.71 per month

However, his new job pays him $9.80 per hour and a half for all hours over 40 hours per week.

It implies that if he works for over 40 hours per week, he gets paid at the rate of:

\mathbf{= 9.80 + \dfrac{9.80}{2}= \$14.7/h}

For 40 hours, he will make 40 hr × $14.7 / hr = $588

Therefore, to make the same amount per week at his current job, he has to work for:

\mathbf{= \dfrac{\$1963.71}{\$14.7}}

= $133.59 hours

Learn more about word problems here:

brainly.com/question/2254383

6 0
2 years ago
According to nutt and backoff, ____ is when the vision has enough imagery that it is powerful enough to communicate clearly a pi
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Articulation is when the vision has enough imagery.
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3 years ago
Your 8-year-old cat ran away, got into a neighbor's cellar, and was stuck there for two months. luckily, there was enough food a
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What are some potential consequences of families having inadequate savings?
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Https://www.wsws.org/en/articles/2013/06/26/payc-j26.html

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6 0
3 years ago
"Nanci purchases all of the assets of Michael's Security Service for $200,000. The assets are as follows: Asset Adjusted Basis F
maxonik [38]

Answer:

option (b) $35,556

Explanation:

Given:

Cost of purchase of assets = $200,000

Asset            Adjusted Basis        Fair Market Value

Inventory      $25,000                     $50,000

Equipment   $60,000                     $40,000

Supplies       $20,000                     $20,000

Building        $80,000                     $95,000

Land             $10,000                      $20,000

Total            $195,000                    $225,000

Now,

since, fair market value is greater than Basis,

Percentage FMV on Equipment =\frac{\textup{FMV for equipment}}{\textup{Total FMV}}\times100\%

⇒ Percentage FMV on Equipment = \frac{\$40,000}{\textup{225,000}}\times100\%

= 17.77%

thus,

Nanci's basis in the equipment = Percentage FMV × Assets

= 17.77% × $200,000

= $35,555.56  ≈ $35,556

Hence,

The correct answer is option (b) $35,556

6 0
3 years ago
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