1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nirvana33 [79]
3 years ago
11

A bond will pay $70 of interest at the end of each of the next three years, plus $1,000 at the end of year three. If the present

market price is $1,040, its yield-to-maturity is: (a) 5.5%. (b) 4.9%. (c) 6.4%. (d) 6.8%. (e) 7.4%.
Business
2 answers:
hram777 [196]3 years ago
4 0

Answer:

(a) 5.5%

Explanation:

Yield-to-maturity (YTM) is the discounting rate for calculating the present value of bond & coupon received.

Bond price = Present value of interest received + present value of bond

⇔ 1040 = 70/(1+ YTM)^3+70/(1+ YTM)^2+70/(1+ YTM) + 1000/(1+YTM)3

It's really difficult to solve above equalation, then we try every hint provived.

(a) 5.5% ->True

70/(1+ 5.5%)^3+70/(1+ 5.5%)^2+70/(1+ 5.5%) + 1000/(1+5.5%)^3 = 1040

(b) 4.9%

70/(1+ 4.9%)^3+70/(1+ 4.9%)^2+70/(1+ 4.9%) + 1000/(1+4.9%)^3 = 1057

(c) 6.4%

70/(1+ 6.4%)^3+70/(1+ 6.4%)^2+70/(1+ 6.4%) + 1000/(1+6.4%)^3 = 1016

(d) 6.8%

70/(1+ 6.8%)^3+70/(1+ 6.8%)^2+70/(1+ 6.8%) + 1000/(1+6.8%)^3 = 1005

(e) 7.4%.

70/(1+ 7.4%)^3+70/(1+ 7.4%)^2+70/(1+ 7.4%) + 1000/(1+7.4%)^3 = 990

Julli [10]3 years ago
3 0

Answer:

a) 5.5 %

Explanation:

Given FV = $1000, P = $1040, n = 3 YAERS, C = $70, YTM = ?

YTM Formula

= C+F-P/n÷F+P/2

=70+1000-1040/3÷1000+1040/2

=5.5%

You might be interested in
The project represented by this resource load chart has a maximum limit of 6 units of resource activity in any day. The first ac
Charra [1.4K]

Complete Question:

The project represented by this resource load chart (see attached) has a maximum limit of 6 units of resource activity in any day. The first activities that are strong candidates for shifting are:

A) Activity A

B) Activities B and C

C) Activities D and E

D) Activity E and F

Answer:

The first activities that are strong candidates for shifting are:

C) Activities D and E

Explanation:

Activities D and E have a total time of 5 days altogether based on the attached resource load chart.  They have the least time and can be shifted to accommodate other activities before they can be tackled sequentially.

A resource load chart displays the total amount of resources required as a function of time in any given project.  It is the best method for establishing the existence of some resource conflicts across project activities, especially when compared to Gantt Charts, Network Diagrams, and Pareto Diagrams.

Download docx
4 0
3 years ago
Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and
Sedaia [141]

Answer:

Prices ensure an equal distribution of goods and services among consumers.

Explanation:

The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.  

Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.  

For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.  

Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.

6 0
2 years ago
(a) (i) Define the term "Green Revolution" as used during the period 1945 to 1985. (ii) Explain the principal agricultural pract
Nimfa-mama [501]

Answer:

(a) (i) Define the term "Green Revolution" as used during the period 1945 to 1985.

  • The use of modern agricultural techniques became widespread around many regions in the world. This led to higher yields through the use of fertilizers, pesticides, genetically modified seeds and mechanical machinery.  

(ii) Explain the principal agricultural practices/technologies associated with the green revolution.

  • extensive use of fertilizers, pesticides, genetically modified seeds and mechanical machinery.  

(iii) Name TWO regions, in different parts of the world, where the green revolution has had a significant impact on crop yields.

  • In North America, Mexican food production increased and they stopped importing food. Although currently that has reversed, and it is importing even more food than before.
  • In Brazil, agricultural production increased dramatically. Both total farmed area and yields have continued to increase in the past years becoming a threat to the amazon basin.

(b) Identify and discuss TWO social, political, or cultural conditions necessary for the success of the agricultural practices/technologies of the green revolution.

  • Emigration from rural areas to urban areas which resulted in a rapid expansion of urban centers. Since less labor was needed in farms, many people left rural areas due to lack of jobs.
  • People started accepting genetically modified crops, which were not well accepted at first. A lot of money was invested in research and development of new seeds, fertilizers and pesticides.

(c) Identify and discuss TWO significant economic or ecological factors that may limit the long-term success of the agricultural practices/technologies of the green revolution.

  • Many new agricultural techniques have resulted in a decrease of soil fertility. In many places crops cannot grow unless a lot of fertilizer is used.
  • Countries were the green revolution was originally successful, like Mexico (where it started), have reduced the total area dedicated to crops. As the yields increased, the price of food started to decrease and many small farms could not keep operating.  
4 0
3 years ago
What are the fundamentals of a wealthy life?
Alenkinab [10]

Answer:

  • Avoiding debt.
  • Budgeting properly.
  • Setting short-term and long-term goals.
  • Investing in yourself.
  • Diversifying your assets.
  • An understanding of risk and reward

8 0
3 years ago
Read 2 more answers
Situations where an individual is required to define right and wrong conduct are termed ________.
koban [17]

Answer:

The right option is option b, which is Ethical dilemmas

Explanation:

Ethical dilemmas are situations in which there is a choice to be made between two options neither of which resolved the situation. It is a decision making problem which is between two possible moral imperatives.

8 0
3 years ago
Other questions:
  • If a partner in a limited partnership dies, the partnership ceases to exist. true
    10·1 answer
  • Why was Amazon one of the the best companies of 2019?? Why was Disney one of the the best companies of 2019?
    14·1 answer
  • A small factory produces toilet paper. The annual demand is 360,000 units, and the company produces toilet paper in batches. On
    9·1 answer
  • The ________________ desires to find a solution to a social problem rather than to simply earn profits.
    7·1 answer
  • Berkshire Inc. had revenues of $379,000 in its first year of operations. The company has not collected on $45,900 of its sales a
    10·1 answer
  • Fast fine foods markets some of its products to consumers looking for simple quick meals. Fast find foots also offer another lin
    14·1 answer
  • PLSSS HELP!!!
    14·1 answer
  • Đề xuất 1 chiến lược cạnh tranh phù hợp cho công ty cổ phần bia rượu Sài Gòn SABECO
    6·1 answer
  • The rules governing when a sale is a sale when the product is _____and _____; the buyer can cancel prior to that.
    7·1 answer
  • Oriental Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment in depr
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!