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3 years ago

A 15-year bond with a face value of $1,000 currently sells for $850.

Business

1 answer:

Veseljchak [2.6K]3 years ago

6 0

Answer:

c. The bond's yield to maturity is greater than its coupon rate.

Explanation:

The coupon rate is that amount of bond which is calculated on the principal amount whereas yield to maturity is that rate which is held till maturity date and generate the investment till the maturity date.

The relationship between the interest rate and the bond value is inverse. It means when the bond value is decrease than the interest is increase and vice versa. So it increases the yield to maturity and decreases the coupon rate

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John Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritan

I am Lyosha [343]

Answer:

John Fillmore must invest $53,739.68 of his inheritance annually to buy the boat at retirement.

Explanation:

To determine this, we employ the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the amount of the boat he wants = $341,400

M = Annual investment required = ?

r = Annual interest rate = 12%, or 0.12

n = number of yeas = 6

Substituting the values into equation (1) and solve for M, we have:

$341,400 = M * (((1 + 0.12)^5 - 1) / 0.12)

$341,400 = M * 6.35284736

M = $341,400 / 6.35284736

M = $53,739.6824846741

Approximating to 2 decimal places, we have:

M = $53,739.68

Therefore, John Fillmore must invest $53,739.68 of his inheritance annually to buy the boat at retirement.

8 0

3 years ago

A useful guideline in designing policies and operating procedures that facilitate good strategy execution is ________.

fgiga [73]

Answer: To prescribe enough policies to give organizational members clear direction and to place desirable boundaries on their actions, then empower them to act within these boundaries however they think makes sense.

Explanation:

A useful guideline in designing strategy-facilitating policies and operating procedures is: to prescribe enough policies to give organizational members clear direction in implementing strategy and to place reasonable boundaries on their actions, then empower them to act within these boundaries however they think makes sense.

4 0

3 years ago

The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calc

katrin2010 [14]

Answer:

$20,000

Explanation:

Given :

Total cost of inventory= $576,000

Upgraded cost of calculator =$170,000

Sold cost of calculator =$230,000

Present sales cost = $40,000.

The incremental revenue of the calculator of sales can be determined by

$= Sold\ cost\ of\ calculator\ -\ Upgraded\ cost\ of\ calculator\$

=$230,000 - $170,000

=$60,000

Therefore financial advantage to the company from upgrading to the calculators can be determined

$$\ 60,000- $40,000\\$

=$20,000

6 0

3 years ago

Yet a fever, when allowed to run its course, is actually ____________ .

Julli [10]

The answer is beneficial. A small research displays that allowing a fever run its course may decrease the span and relentlessness of such sicknesses like colds and flu. As for the worry among parents that fevers can have damaging effects, these occurrences are very occasional. The brain has an interior controlling mechanism that stops fevers caused by contaminants from receiving higher than 105 or 106 degrees.

8 0

3 years ago

"Consumer sovereignty" means that Group of answer choices1. buyers can dictate the prices at which goods and services will be of

nalin [4]

Answer:

2. advertising is ineffective because consumers already know what they want.

Explanation:

Consumer sovereignty is the idea that it is consumers who influence production decisions because they decide what to buy by checking to see that their expectations are meet. Production of goods is designed towards meeting the needs of the consumers. The consumers select what they want to buy by the checking if the good fulfills their needs and wants.

6 0

3 years ago