Answer:
7.43%
Explanation:
Where the debt is publicly traded , the cost of debt is equal to the yield to maturity
Approximate yield to maturity = [coupon +(face value - market price )/ number of years to maturity ]/ [{face value + market price]/2]*100
Face value - 2000
Market price - 1905
years to maturity= 30 years
Coupon =( 6.9%*2000)/ 2 = 69
Workings
[69 + (2000-1905)/30] / [(2000+1905]/2 *100)
([69+3.17]/[(3905]/2*100)
(72.17/1952) * 100 = 3.70
Annual yield = 3.7*2= 7.4%
7.4 % being an approximate yield value , the closest option is 7.43%
Answer:
The second option which 5 years to maturity exhibited a lower price of
$523.95
Explanation:
In order to ascertain the option with lower, it is important we determine the price of each investment based on the fact the price of an investment opportunity today is the present value of its future cash flow is the maturity value of $1000 in both cases:
a.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=4 years
PV=$1000/(1+13.80%)^4
PV=$596.25
b.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=5 years
PV=$1000/(1+13.80%)^5
PV= $523.95
Answer:
Steps to Reviewing it:
- Look for the unweighted and Total GPA
- Look at the individual grades for the various subjects by semester then by GP.
- Look at the explanation of marks
- Finally look at the comments made on the report
Sections drawn to:
- Total GPA
- Grades in certain courses such as Computer Science, Commerce and Chemistry.
- Comments from teachers
Important to me
- That I pass all my subjects as much as possible and cause my teachers less grief.
Important to my parents
- That I pass all my subjects by the best margins possible.
Actions if something looks wrong:
- Investigate on my own first for instance, if a grade is not what it should be, go through term papers and be sure of the results.
- Go to relevant authority to complain.
Consumer protection is the movement to protect the valid interests of consumers and is a major force in small business today
It was very good I lead them army of students at a football team