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larisa86 [58]
3 years ago
14

When a $1000 bond is initially sold at 5 percent "coupon" yield for 30 years, $50 (.05 x $1,000) interest per year is paid to th

e buyer of the bond. However, if interest rates decrease to 4 percent for similar bonds issued later on, then the market price of the initial bond will _________________ ..
Business
1 answer:
seraphim [82]3 years ago
7 0

Answer:

Increase.

Explanation:

We know,

Coupon rate > yield to maturity = Premium or > Market price

Here,

Coupon rate = 5%

Interest rate or YTM = 4%

From the formula,

We can say that as the coupon rate is greater than YTM, the market price of a $1000 issued bond will be increased. We can say that the bond is selling at a premium price because the interest rate is decreasing.

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What is the plowback ratio for a firm that has earnings per share of $12.00 and pays out $4.00 per share as dividends?
liubo4ka [24]

Answer:

66.67%

Explanation:

A firm has an EPS of $12

The dividend paid is $4

The first step is to calculate the payout

= 4/12

= 0.3333×100

= 33.33

Therefore the Plowback ratio can be calculated as follows

= 1-33.33%

= 0.667×100

= 66.67%

Hence the Plowback ratio is 66.67%

8 0
2 years ago
How many employees does a walmart have at one specific location?
grigory [225]
Well from the looks of it, like 3


No thats a joke, on average Walmart has 20-50 employees on location at once
7 0
3 years ago
Federal antitrust statutes are complex, but the basic goal is straightforward: to prevent a major industry from being so dominat
wolverine [178]

Answer:

Many observer says it does

Explanation:

This is because certain or few group of owners would dominate the industry and also won it, they would control how new owners enter into the game

6 0
3 years ago
An accreditation agency counterpart to the joint commission for managed care organizations is
katen-ka-za [31]
<span>An accreditation agency counterpart to the joint commission for managed care organizations is called: NCQA

NCQA is the acronym for </span><span>National Committee for Quality Assurance, an independent non-profit organization which was formed to improve the quality of health care in the country.</span>
8 0
3 years ago
Aside from an associates degree what else can earn at a two year college
Assoli18 [71]
A two year college may also have a vocational technical side beside the associate degree.
Vo-tech careers can take 12-24 months of study; examples culinary arts, house construction, vet tech, cosmetology. Certificate programs are also available for learning specific computer programs, project management, or health aide.
You might want to check out Pensacola State college for a good look.
3 0
3 years ago
Read 2 more answers
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