1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
cricket20 [7]
3 years ago
6

A bond par value is $1,000 and the coupon rate is 5.1 percent. The bond price was $946.02 at the beginning of the year and $979.

58 at the end of the year. The inflation rate for the year was 2.6 percent. What was the bond's real return for the year
Business
1 answer:
Licemer1 [7]3 years ago
6 0

Answer:

the bond's real return for the year is 6.18 %.

Explanation:

First find the nominal return of the bond then the real return as follows :

PV = - $946.02

Pmt = $1,000 × 5.10% = $51

P/yr = 1

FV = $979.58

n = 1

r = ?

Using a Financial Calculator, the nominal return of the bond, r is 8.9385 %.

Real Return = ( 1 + nominal return) / (1 + inflation rate) -1

                   =  (1 + 0.089395) / (1 + 0.026) - 1

                   = 0.0618 or 6.18 %

You might be interested in
Part 1 Ken is the produce manager at saying way a large Supermarket that is part of a national chain. After completing a few man
Dvinal [7]

The people who may be significantly affected by the outcome of this negotiation by the manager include the employer and the customers.

<h3>Who is a manager?</h3>

It should be noted that a manager simply means an individual who oversees the team in a company and ensures that the goals of the company are achieved.

In this case, Ken is the produce manager at saying way a large Supermarket that is part of a national chain and after completing a few management courses offered by his employer, as well as five years of service at the supermarket, he is up for a promotion to assistant manager and is about to negotiate his new salary.

In this case, the people who may be significantly affected by the outcome of this negotiation by the manager include the employer and the customers. This was illustrated in the information.

Learn more about manager on:

brainly.com/question/24553900

#SPJ1

4 0
1 year ago
Stephanie has a homeowners insurance policy for her $355,000 home with an annual premium of $0. 42 per $100 of value and a deduc
harkovskaia [24]

The annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is <em>b. $0. 28 per $100 of value.</em>

Data and Calculations:

Home value = $355,000

Annual premium rate = $0.42 per $100

Deductible  $500

Total annual out-of-pocket expense = $1,991 ($355,000 x 0.0042 + $500)

New deductible = $1,000

New annual premium rate = $0.28

Total annual out-pocket expense based on the new premium rate = $1,994 ($355,000 x 0.0028 + $1,000)

Thus, the annual premium that would result in Stephanie's annual out-of-pocket expense that is about the same as her current plan is <em>Option b.</em>

Learn more: brainly.com/question/18618915

6 0
2 years ago
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible A
Lunna [17]

Answer:

$870

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Allowance for uncollectible accounts at 5%

= 5% * $302,000

= $1,510

Since the Allowance for Uncollectible Accounts was $640 (credit) before any adjustments, the bad debt expense for the year

= $1,510 - $640

= $870

8 0
3 years ago
Allison's requires $180,000 to fund a new project next year. The firm expects to earn excess cash of $68,000 this year after all
liraira [26]

$0 is needed

<u>Explanation:</u>

As per pecking order theory the risks and consequently cost increases in the order of own cash reserves, debt and then fresh equity . Since own cash reserves and debt could take care of funding requirement, so according to the pecking order theory as studied, the fresh equity needed is $0, which means there is no requirement.

Therefore, there should be no equity capital that should be raised in order to fund the project.

The correct answer is $0 equity.

4 0
3 years ago
as the ot consultant on a corporation’s ergonomics team, you notice an increased incidence of work-related musculoskeletal disor
belka [17]

As the ot consultant on a corporation’s ergonomics team, you notice an increased incidence of work-related musculoskeletal disorders in workers in the payroll department. To increase awareness of the problem and generate possible solutions Provide the client with an exercise program for improving gaze stabilization.

Experts work with patron corporations to resolve precise commercial enterprise challenges. Consulting projects are frequently carried out in groups and might be cognizant of an expansion of regions, including method and era implementations. some specialists are independent professionals, however many paintings are for consultancies like McKinsey.

Pursuing a career in consulting may be difficult. however, for MBA graduates with the proper skillset, consulting provides an amazing and beneficial professional course and a variety of globally renowned companies to paint for.

Experts acquire an agreed-upon price for work on an undertaking completed through a specific date. They generally determine mission prices with the aid of estimating the number of hours it'll take to complete the task, extended by using their hourly price.

Learn more about consulting here brainly.com/question/26417203

#SPJ4

3 0
2 years ago
Other questions:
  • Which action best reflects the influence of John Maynard Keynes? O A. A business lobbies a government to reduce its overall tax
    14·1 answer
  • Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $
    12·1 answer
  • Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance
    14·1 answer
  • In the long run, money demand and money supply determine
    10·1 answer
  • RAM stands for _____.
    8·1 answer
  • How do value chains determine business processes and its​ structure??
    8·1 answer
  • At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its margin
    14·1 answer
  • Anyone know the answer to this question
    6·2 answers
  • On January 1, 2020, Mirada, Inc. issued five year bonds with a face value of $100,000 and an annual stated rate of 8%. Interest
    9·1 answer
  • The Bombay Company, Inc., sold a line of home furnishings that included furniture, wall decor, and decorative accessories. Bomba
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!