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goldenfox [79]
3 years ago
10

What is the highest expected return these bonds could​ have? At the​ time, similar maturity Treasuries had a yield of 0.89 %. Co

uld these bonds actually have an expected return equal to your answer in p
Business
2 answers:
nydimaria [60]3 years ago
7 0

Answer: A bond's expiration date depends on the type of the bond and the state the bond is issued for. Some bonds expire a year from the issuance date. Some bonds have longer terms and might not expire for two, three, four or more years. Other bonds expire on a certain date regardless of when they were issued.

Explanation: Most commercial bonds are good for 1-3 years, but can vary depending on the bond type. Court bonds are effective for as long as is necessary, as determined by the court in whose jurisdiction the bond is issued.

Ymorist [56]3 years ago
4 0

Answer:

a. For a risk-free system, y = 2.05%

b. no

Explanation:

The expected return on a given business investment is commonly known as the expected or estimated value of the return of the business investment. It is usually obtained by taking into account the center of distribution of a random variable. In part (a), the highest expected return is approximately 2.05%. in part (b) it is not possible.

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Issuers of coupon bondsmake a single payment of principal when the bonds matures, but multiple payments of interest over the lif
qaws [65]

Answer:Make a single payment of principal when the bonds matured but multiple payment of interest over the life of the bond.

2.0600

Explanation:

Bonds normally has a life of span from one upward for which interest will be paid to the investors as compensation for use of their fund and the principal sum will be refunded on the expiration of the bond life.

The return on a bond is fixed as specified in the bond contract the inability to make payment as at when due may not affect the return obtainable from the bond initial contract.

3 0
3 years ago
What makes the managerial task of executing strategy so challenging and demanding is the trial-and-error experimentation that is
Arturiano [62]

Answer:

The demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along.

Explanation:

What makes the managerial task of executing strategy so challenging and demanding is the demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along.

Change management s one of the most difficult tasks of strategic management because employees of the organisation and even some of the managers are opposed to change. They themselves become change barriers that stops the organization from advancing.

3 0
4 years ago
Phoenix’s recovery will be complete by 2021, and there will be no further growth in free cash flow. a. Calculate the PV of free
emmasim [6.3K]

Answer,: SOLUTION: a. PV2016= DIV2017/ (1 + r) + DIV2018/ (1 + r)2+ DIV 2019 / (1 + r ) 3 + DIV 2020 / (1 + r ) 4 + DIV 2021 / (1 + r ) 5 + (DIV 2021 / r) / (1 + r ) 5 PV 2016 = $0 / 1.09 + $1 / 1.09 2 + $2 / 1.09 3 + $2.3 / 1.09 4 + $2.6 / 1.09 5 + ($2.6 / .09) / 1.09 5 PV 2016 = $24.48 million b. Price per share 2016 = PV 2016 / number of shares Price per share 2016 = $24.48 / 12 Price per share 2016 = $2.04 c. Based on $1million of net income for 2016: P/E 2016 = $24.48 / $1 = 24.48 The PV of the cash flows at various points in time are as follows: PV 2017 = $1 / 1.09 + $2 / 1.09 2 + $2.3 / 1.09 3 + $2.6 / 1.09 4 + ($2.6 / .09) / 1.09 4 PV 2017 = $26.68 PV 2018 = $2 / 1.09 + $2.3 / 1.09 2 + $2.6 / 1.09 3 + ($2.6 / .09) / 1.09 3 PV 2018 = $28.09 PV 2019 = $2.3 / 1.09 + $2.6 / 1.09 2 + ($2.6 / .09) / 1.09 2 PV 2019 = $28.61 PV 2020 = $2.6 / 1.09 + ($2.6 / .09) / 1.09 2 PV 2020 = $28.89 PV 2021 = $2.6 + ($2.6 / .09) / 1.09 PV 2021 = $28.89

Explanation:

8 0
3 years ago
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending i
Lyrx [107]

Answer:

a. An additional layer of $12,760 is added to the 12/31/2021 balance.

Explanation:

The computation of the inventory balance is given below:

2021 Base year cost is

=  $131,040 ÷ 1.05

= $124,800

Additional layer is

= $124,800 - $101,600

= $23,200

2022 Base year cost is

= $150,040 ÷ 1.10

= $136,400

Additional layer is

= ($136,400 - $124,800 ) × 1.10

= $11,600  1.10

= $12,760

Therefore the first option is correct

3 0
3 years ago
A good financial plan does not include an insurance plan.
spayn [35]
A good financial plan does not include an insurance plan. 
This statement it false. Insurance plans provide a person long-term benefits that are paid at present but can be used later in the future, especially for emergency purposes (e.g. health insurance).

If Randy would like to save his money for a vacation next year he must use an online banking account. This way he can easily track his transactions day-in and day-out to save up for his trip.
6 0
4 years ago
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