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
lakkis [162]
3 years ago
7

Ms. Jones wants to make 14​% nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase a 12

​%, ​$10 comma 000 bond that will mature in 12 years and pays quarterly interest. This means that she will receive quarterly interest payments on the face value of the bond ​($10 comma 000​) at 12​% nominal interest. After 12 years she will receive the face value of the bond. How much should she be willing to pay for the bond​ today?
Business
1 answer:
AlladinOne [14]3 years ago
6 0

Answer:

IF mrs Jones wants to make 14% on the bond this is her required return and what the ytm of the bond should be to make her want to buy the bond. Because the bond pays a coupon of 12% she will want to pay less than the face value of the bond, so that the overall return can be 14%. Whenever the coupon rate of the bond is less than the required return or ytm, the bond is sold at a discount. In order to find at what price should she buy the bond we will need a financial calculator and input the following

FV= 10,000

YTM= 3.5 ( We divide 14 by 4 to find the ytm because the bond has quarterly compounded payments)

PMT= 300 ( We find out the 12% of 10,000 and divide it by 4 because the bond has quarterly payments)

N= 48 (12 years into 4 because there will be a total of 48 quarters and 48 payments)

Put these values in a financial calculator and compute the PV

PV= 8,845

The present value of the bond is 8,845 if the required return is 14% which means she should be willing to pay $8,845 for the bond today.

Explanation:

You might be interested in
Which examples demonstrate common Financial and Investment Planning workplaces and employers? Check all
jenyasd209 [6]

Answer:

The correct answers are,

  • -Carmen Works in an investment companies office analyzing the level of risk that different Investments offer
  • -Luisa works at a stock exchange buying and selling securities for customers
  • -Ladonna is self-employed and meets with customer dinner office to provide Financial advice ​

Explanation:

financial advisory is an important aspect in the business world and is important for the companies and start ups to smartly and effectively utilize their finances.

most of the time, those who are in the profession of "financial advisory" are carefully monitored by regulatory bodies such as the securities and exchange commissions and related professional body.

in this scenario, investment officers and stock brokers are shown, all fall under the category of advisers.

3 0
2 years ago
Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. a) Busines
lbvjy [14]

Answer:

D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.

Explanation:

The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.

4 0
2 years ago
1. led a tax rebellion Columbus 2. commander in chief in Revolution Andrew Jackson 3. financial plan established United States e
gogolik [260]

Answer:

The correct answer are:

1. Daniel Shays; 2. George Washington; 3. Alexander Hamilton; 4. Thomas Jefferson; 5. Columbus; 6. Francis Scott Key; 7. Andrew Jackson; 8. Lewis and Clark.

Explanation:

The American Revolution shook the entire world. The thirteen British colonies that would become the United States of America, fought and won the battle against the most powerful imperial power on the planet. In the years that followed the American victory over the British, the hopes of the masses were betrayed. Consequently, there were many popular movements and uprisings. But none had such a great impact on the psychology of the ruling class and the future structure of the US government as the Shays Rebellion of 1786-87, which some have called "The Final Battle of the American Revolution."

Considered the "Father of the Fatherland," George Washington was a celebrated general, farmer, entrepreneur and the first president of the United States.

Alexander Hamilton was an American politician. He was a young lawyer from New York when the War of Independence broke out in the thirteen British colonies of North America (1775-83). In 1777 he became secretary of George Washington, commander in chief of the insurgent army.

8 0
3 years ago
New york city, london, and tokyo are examples of ______ financial centers because of their fiscal transparency and strict tax po
grin007 [14]

New york city, London, and Tokyo are examples of onshore economic facilities because of their monetary transparency and strict tax policies.

Tax policy is the use of authorities' spending and taxation to steer the economy. Governments commonly use monetary policy to sell sturdy and sustainable increase and decrease poverty. The amount of money that a government requires humans to pay in step with their profits, the price of their belongings, and many others. and this is used to pay for the matters performed by way of the authorities.

Examples of this encompasses decreasing taxes and raising government spending. while the government uses monetary policy to decrease the amount of cash available to the population, this is referred to as contractionary fiscal policy.

The primary purpose of a tax is to raise revenue for governmental activities, in place of steering commercial enterprise and private decisions. monetary increase and performance The tax gadget must now not unduly hinder or reduce the efficient capability of the financial system.

The taxation machine in India is such that the taxes are levied via the central government and the kingdom Governments. a few minor taxes also are levied through the neighborhood authorities which include the Municipality and the nearby Governments. The tax bill is initiated within the House of Representatives and noted the approaches and way Committee. when participants of this committee attain an agreement about the regulation, they write a proposed law. After Congress passes the bill, it goes to the president, who can both sign it into law or veto it.

Learn more about Tax policy here:

brainly.com/question/26316390

#SPJ4

8 0
1 year ago
________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentiall
Liono4ka [1.6K]
Service <span> refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.
A service does not have a physical appearance unlike any other type of product. It is created to make it easier for customers to do certain things that offered by the service.</span>
7 0
3 years ago
Other questions:
  • Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of
    5·1 answer
  • Kayak is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the W
    9·1 answer
  • Sovereign immunity:
    10·1 answer
  • What is the effective rate of a $25,000 interest-bearing simple discount 10%, 90-day note?
    11·1 answer
  • A collection of verbal and symbolic assertions that specify how and why variables are related, and the conditions under which th
    15·1 answer
  • A graduating high school student decides to take a year off and work to save money for college. The student plans to invest all
    10·1 answer
  • During the sensorimotor stage of cognitive development, the child:
    6·1 answer
  • Helena Company uses a standard cost system, and allocates variable overhead costs based on direct labor hours. This month, the f
    6·1 answer
  • in a printing job, the cost of producing a thousand brochures was GH3500.The publisher decided to sell these brochures at 125% g
    7·1 answer
  • 7. During January 2005, an Italian invested in the Italian stock market and earned a return of 1.47%. During the same month, an
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!