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Brut [27]
3 years ago
12

I purchase a 10 percent coupon bond. Based on my purchase price, I calculate a yield to maturity of 8 percent. If I hold this bo

nd to maturity, then my return on this asset is:_____.
A) 10 percent.
B) 8 percent.
C) 12 percent.
D) there is not enough information to determine the return.
Business
1 answer:
Vedmedyk [2.9K]3 years ago
8 0

Answer:

B) 8 percent.

Explanation:

The yield to maturity is the expected rate of return of a bonds if held until maturity.

We are asked precisely for what rate are we receiving if held at maturity so we receive the yield to maturity.

That is a rate at which the discounted coupon payment and maturity payment matches the price we urchase the bonds.

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You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $ 10 milli
Lana71 [14]

Answer:

A)Choose A B) Choose B C) 0.45

Explanation:

We will use the NPV formula to calculate the IRR and them choose investment opportunity with a high IRR

NPV (A)=CF/R -II

       0 =2.4/r -10 m

        r=0.24/24%

NPV(B)=1.8/r-0.045-10

         0=1.8/r-0.045-10

          r=0.135/13.5%

Therefore choose A

B)NPV (A)

=2.4/0.064-10

=$27.5 MIL

NPV (B)

=1.8/0.064-0.045 -10

=1.8/0.019-10

=$84.74 MIL

Therefore choose B as it has higher NPV

C) Equate the NPV to in order to calculate the cost of capital

2.4/r -10 =1.8/r-0.045 -10

2.4/r=1.8/r-0.045

1.8r=2.4r-0.108

0.6r=0.108

r=0.556/5.56%

=

       

8 0
3 years ago
A manufacturer wishes to make tee-shirts for the band Dixie Chicks. They sell for $11 each. She must deliver all the tee-shirts
love history [14]

Answer:

44,000*n dollar

Explanation:

If a machine produce 200 per day at the rate of 11 dollars each and she has 20 days. This implies that each machine will produce 44,000 dollar

Therefore for n machine, she will have money m of 44,000*n dollar

8 0
3 years ago
If an audience doesn't trust you, they won't listen to you. To establish credibility, speakers must earn the audience's trust. W
aalyn [17]

Answer:

Lies.

Explanation:

If i say i'm a rich and talented speaker I better have the proof to back it up otherwise they'll know "I'm" just a phony and all talk. To make urself trustworthy u have to borrow and the day after return somebody's money, or just always do what u say ur going to.

6 0
3 years ago
The economy of the gilded age was characterized by economic growth and high unemployment among unskilled workers. rapid economic
PolarNik [594]

Answer:

The economy of the Gilded Age was characterized by:

(i) economic growth and high unemployment among unskilled workers.

(ii) a deep recession in which high unemployment fueled massive and rebellious social change.

(iii) slow economic growth and high unemployment among the middle class.

(iv) rapid economic growth and social change.

Economy:

Economy simply indicates an arrangement in which the people are indulged in consumption, and other economic activities. No arrangement can ever be said as an economy without the prevalence of economic activities.

Answer and Explanation: 1

The correct answer is (iii) slow economic growth and high unemployment among the middle class

In the US, glided age resembles the scenario prevailing in the last phase of 19th century. The primary feature of this age is the slower pace of economic growth. This indicates when the economy is least indulged in industries. Also, several people stay unemployed despite lying within middle-income classes. This is because if the people lying in the middle class are unemployed, then it could be understood that poverty would be extreme in an economy.

5 0
2 years ago
When current output is less than potential output, which of the given monetary policies is the federal reserve (the fed) likely
PSYCHO15rus [73]

The federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in the case when current output is less than potential output.

The Federal reserve does enhance the economy by reducing the interest rate that banks pay each other for overnight loans.

  • However, if the current output is greater than potential output, then, the FED would try to reduce current output by increasing the interest rate.

In conclusion, the federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in this case when the current output is less than potential output.

Read more about this here

<em>brainly.com/question/25517712</em>

8 0
3 years ago
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