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Gelneren [198K]
2 years ago
14

A security will make payments of $25 per month for the next 5 years, plus $1000 at maturity. Which of the following is true? Gro

up of answer choices If the price increases from $1,500 to $1,600 then the period rate will be more than the nominal rate If the price increases from $1,500 to $1,600 then the yield to maturity will increase. If the price increases from $1,500 to $1,600 then the effective rate will increase If the price increases from $1,500 to $1,600 then the yield to maturity will decrease.
Business
1 answer:
IRISSAK [1]2 years ago
7 0

Answer: If the price increases from $1,500 to $1,600 then the yield to maturity will decrease.

Explanation:

If Yields in the market fell, Bonds would still be making the same coupon payments they always have been regardless of this fall. This will lead investors to buy more bonds which will have the effect of raising bond prices.

This therefore shows that Bond prices and Yields are inversely related. If one rises, the other falls. If the price of the security (bond) increases from $1,500 to $1,600 then it follows that the yield to maturity will decrease.

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Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's pr
BartSMP [9]

Answer:

Option B, IRR is 14.42%

Explanation:

The IRR is the rate of return that equates the cost of the project to the present value of cash flows receivable from the project in future.

Using an excel approach, the formula formula IRR is given as:

=irr(values)

The values in this case are

-$1300 in  year 0

$450 in year 1

$450 in year two

$450 in year 3

$450 in year 4

The irr gives 14.42% as shown in the spreadsheet attached

The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return

Download xlsx
4 0
3 years ago
The annual percentage yield (apy) is the
tia_tia [17]
Annual interest rate that factors in compounding effects.

Formula: APY = ( 1 + APR/n )^n - 1
4 0
3 years ago
Read 2 more answers
An electronics company has developed a new hand-held device. The company predicts that the start-up cost to manufacture the new
Leni [432]

Answer:

A) to calculate the break even point we can use the following:

break even point = fixed costs / contribution margin

break even point = 125,000 / (9 - 6.5) = 125,000 / 2.5 = 50,000 units

The company must sell over 50,000 units to make a profit

B) if the unit production costs increase 10%, the new unit cost will be $7.15, and the new break even point will be: 125,000 / (9 - 7.15) = 125,000 / 1.85 = 67,567.6 which we round up to 67,568 units.

Now the company must sell at least 67,568 units to make a profit

C) If the company wants to increase its product price to a level where the break even point is 50,000 units, then the new price should be $9.65.

The contribution margin must be $2.5, so if the production costs are $7.15, we just add $2.5 to get $9.65 per unit.

3 0
3 years ago
Which of the following skills are
Verizon [17]

Answer:

A. organization

Explanation:

a secretary writes the minutes during a meeting and also schedules the meetings for his boss therefore he/she must be organized for the work to be done efficiently.

7 0
2 years ago
The table below shows the average income of the U.S. total population over age 25, based on level of education. Drag the differe
abruzzese [7]

The differences in average income are $6,080, $6169, $18,219, and $19,151.

The table below organizes income from the one with the lowest education level to the highest one. Moreover, there is a general trend in which income increases with education.

Now, to find the difference in average income based on education it is necessary to subtract the income of a lower level to the income of the next educational level.

Less than Highschool vs. High school graduate:

  • $31,956 - $25,876 = $6,080

High school graduate vs. some college or Associate's degree:

  • $38,125 - 31,956 = $6169

Some college or Associate's degree vs. Bachelor's degree:

  • $56,344 - $38,125 = $18,219

Bachelor's degree vs Profession or Doctorate degree:

  • $75,495 - $56,344 = $19,151

Learn more about mathematics in: brainly.com/question/12083755

4 0
2 years ago
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