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Gelneren [198K]
3 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]3 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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Samuel's full retirement age is 65 years old and his monthly benefit at that age is $1,000. According to the Social Security Adm
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Answer:

Assuming that Samuel's retiring age is exactly 65 years old, and he starts collecting benefits 24 months before his full retirement age (exactly on his birthday number 63), then he will receive $867 per month (or 86.7% of his full benefits).

This calculation varies depending on the number of months, e.g.

months before full retirement age                   % of full retirement benefit

24                                                                     86.7%

23                                                                      87.2%

22                                                                      87.8%

21                                                                      88.3%

20                                                                      88.9%

19                                                                      89.4%

18                                                                      90.0%

17                                                                      90.6%

16                                                                      91.1%

15                                                                      91.7%

14                                                                      92.2%

13                                                                      92.8%

8 0
3 years ago
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Llana [10]
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8 0
3 years ago
A sporting equipment store expects to purchase $8,600 of ski boots in October. The store had $2,400 of ski boots in merchandise
Kobotan [32]

Answer:

the budgeted cost of goods sold is $9,600

Explanation:

The computation of the budgeted cost of goods sold is shown below:

As we know that

Budgeted cost of goods sold = Beginning inventory + Purchase - Ending Inventory

= $2,400 + $8,600 - $1,400

= $9,600

Hence, the budgeted cost of goods sold is $9,600

7 0
3 years ago
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