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AVprozaik [17]
4 years ago
9

An engineer bought a $1000 bond of an American airline for $875 just after an interest payment had been made. The bond paid a 6%

coupon interest rate semiannually. What nominal rate of return did the engineer receive from the bond if he held it 13.5 years until its maturity
Business
1 answer:
goldenfox [79]4 years ago
8 0

Answer:

Number of coupon payments = 13.5*2= 27

Coupon = 6%*1000/2= 30

Let rate be r

Present value of all future payments = $87

875 = 30*(1-1/(1+r)^27)/r + 1000/(1+r)^27

R= 3.74%

Nominal rate = 3.74%*2 = 7.49%

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Unemployment would cause an economy to Group of answer choices produce outside its production possibilities frontier. produce in
bagirrra123 [75]

Answer:

The correct answer is: produce inside its production possibilities frontier.

Explanation:

The production possibility frontier shows the maximum possible combination of two goods that an economy can produce using all the available resources and state of technology.

Unemployment in an economy means that all the available resources are not being completely used. So, the economy will operate at a point inside the production possibility curve.

Production at this point will be feasible but allocatively inefficient.

3 0
3 years ago
Futura Inc. introduced an automobile that could run completely on electricity for longer periods of time than any other electron
Juli2301 [7.4K]

Answer:

Disruptive innovation.

Explanation:

Disruptive innovation is one that creates the way a market operates, that is it creates a new market and disrupts the old one. Existing firms and products are displaced.

In this instance when Futura Inc. introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile, it introduced a product that will cause disruptions in the current automobile industry.

Although there was challenges of frequent repairs, this was eventually resolved.

8 0
3 years ago
Christina purchased 500 shares of stock at a price of $62.30 a share and sold the shares for $64.25 each. She also received $738
Gnesinka [82]

Answer:

1.60 percent

Explanation:

exact real rate of return on this investment = interest rate - inflation rate

total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863

total money invested = 500 × $ 62.30 = $ 31150

her profit =  $ 32863 - $ 31150  = $ 1713

interest =  $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %

exact interest rate = 5.4992 %  - 3.9% = 1.5992 approx 1.60 percent

6 0
3 years ago
When an organization expands into a totally new line of business, it is implementing a strategy of:?
Pachacha [2.7K]
<span>Unrelated diversification</span>
8 0
3 years ago
. You have room for up to two fruit-bearing trees in your garden. The fruit trees that can grow in your garden are either apple,
Alina [70]

Answer:

you should have 2 apple trees

Explanation:

<u>you can have</u>                           <u>savings</u>            <u>costs</u>            <u>net payoff</u>

no tree at all                                0                      0                     0

1 apple tree                               $130                $100                $30

1 orange tree                            $90                  $70                 $20

1 pear tree                                $145                 $120                $25

<u>2 apple trees                           $260               $200                $60</u>

2 orange trees                         $180                $140                 $40

2 pear trees                             $290               $240                $50

1 apple + 1 pear tree                $275               $220                $55

1 apple + 1 orange tree            $220               $170                 $50

1 orange + 1 pear tree              $235               $190                 $45

8 0
3 years ago
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