Answer:
0.104
Explanation:
We are to determine the yield to maturity of the bond
yield to maturity can be determined using a financial calculator
Cash flow in year 0 = -500
Cash flow each year from year 1 to 6 = 0
Cash flow in year 7 = 1000
YTM = 10.4%
To find the YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
Downward sloping
Explanation:
According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.
Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.
Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.
Intersect. On a graph that is where they intersect.
Answer:
These are careers that are focused on running businesses.
Explanation:
The business management and administration career cluster are careers that are focused on the running of businesses. What it does is to help students prepare for effective and good careers on the processes of running good and productive businesses. It has several career pathways to follow in achieving this.
Answer:
I will be willing to pay $1,106 for a vanguard bond.
Explanation:
Coupon payment = Par value x Coupon rate
Coupon payment = $1,000 x 8%
Coupon payment = = $80
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$80 x [ ( 1 - ( 1 + 7% )^-20 ) / 7% ] + [ $1,000 / ( 1 + 7% )^20 ]
Price of the Bond = $80 x [ ( 1 - ( 1.07 )^-20 ) / 0.07 ] + [ $1,000 / ( 1.07 )^20 ]
Price of the Bond = $848 + $258
Price of the Bond = $1,106
