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Olenka [21]
3 years ago
8

What is the approximate yield to maturity and the exact yield to maturity (use a calculator) for the $1,000 semi-annual bond? As

sume this is issued in the United States: 10 years to maturity, 6 percent coupon rate, current price is $950.
Business
1 answer:
bagirrra123 [75]3 years ago
7 0

Answer:

6.67% and 6.694%

Explanation:

The computation of the approximate yield to maturity and the exact yield to maturity is shown below:

For Approximate yield to maturity it is

= 2 × ((Face value - current price) ÷ (2 × time period) + face value × coupon rate ÷ 2) ÷ (Face value + current price) ÷ 2)

=2 × (($1,000 - $950) ÷ (2 × 10) + $1,000 × 6% ÷ 2) ÷ (($1,000 + $950) ÷ 2)

= 6.67%

Now

the Exact yield to maturity is

= RATE(NPER,PMT,-PV,FV)

= RATE (10 × 2, 6% × $1000 ÷ 2,-$950,$1,000) × 2

= 6.694%

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Answer:

It is C.

Explanation:

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One criteria for deciding whether to have a server active all the time or have it start on demandusing a process server is how f
belka [17]

Answer:

The other criteria could be about the expected delay that is acceptable to customer in the processing time of the server.

Explanation:

If the customers are ready to accept a certain delay then it can help making the decision whether to keep the server permanently on, as it consumes high power.

Also if it is not used all the time then keeping it on all the time would be wastage of resources.

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3 years ago
The lower of cost or market approach is Blank______ for companies that use Blank______. Multiple choice question. required under
LenaWriter [7]

The lower cost or market approach is (C) required under GAAP for companies that use  LIFO or retail inventory.

<h3>What is market approach?</h3>
  • The market approach is a method of evaluating an asset's worth based on the selling price of comparable assets.
  • Along with the cost technique and discounted cash-flow analysis, it is one of three main valuation methodologies (DCF).
  • Companies that use LIFO or retail inventory are obligated by GAAP to use the lower cost or market method.
  • A realtor, for example, can gather information on comparable real estate sales in close vicinity to a client's property and modify those values to account for differences in land area and building square footage to arrive at a market-based valuation for the targeted property.

Therefore, the lower cost or market approach is (C) required under GAAP for companies that use  LIFO or retail inventory.

Know more about the market approach here:

brainly.com/question/8084221

#SPJ4

The complete question is given below:

The lower cost or market approach is _____ for companies that use _____.

a. optional under GAAP; LIFO or the retail inventory

b. optional under GAAP; any method of inventory valuation

c. required under GAAP; LIFO or the retail inventory

d. required under GAAP; any method of inventory valuation

7 0
1 year ago
Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to ser
Kryger [21]

Answer:

Bid A should be accepted

Explanation:

Bid A:

initial investment = $5.75 x 12,000 = -$69,000

cash flows years 1 - 4 = $0.25 x 12,000 = -$3,000

cash flow year 5 = -$69,000

cash flows years 6 - 9 = $0.25 x 12,000 = -$3,000

NPV using a 9% discount rate = -$129,881.21

Bid B:

initial investment = $10.50 x 12,000 = -$126,000

cash flows years 1 - 9 = $0.09 x 12,000 = -$1,080

NPV using a 9% discount rate = -$132,474.87

3 0
3 years ago
The competitive equilibrium rent in a standard two bedroom apartment in lawrence (a city) is $600. now suppose the city council
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