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
mario62 [17]
3 years ago
13

Trevor Price bought 10-year bonds issued by Harvest Foods fi ve years ago for $936.05. Th e bonds make semiannual coupon payment

s at a rate of 8.4 percent. If the current price of the bonds is $1,048.77, what is the yield that Trevor would earn by selling the bonds today?
Business
1 answer:
balu736 [363]3 years ago
5 0

Answer: 11.14%

Explanation:

Buying price of bond = $936.05 -PV

Years investment held = n= 5*2

Rate of the Coupon = C = 8.4%

Frequency of payment = m= 2

Annual coupon = $1,000 × (0.084/2) = $42

Realized yield = i

Selling price of bond = PB = $1,048.77 = FV

Enter N= 10, PMT = $42, PV= -$936.05$, FV = 1,048.77

Answer 5.425%

The effective annual yield can be computed as:

EAY = (1+ Quoted m)^m -1

= (1+0.054)^2 - 1

=(1.054)^2- 1

=0.1114= 11.14

You might be interested in
Many countries engage in trade protection by imposing import tariffs or quotas for at least some goods. this is because:
kobusy [5.1K]
I think the answer here would be D
6 0
3 years ago
An analyst estimates the index model for a stock using regression analysis involving total returns, not the excess return. The e
Angelina_Jolie [31]

Answer:

The true β of the stock is 0%

Explanation:

6% = a + 12% (1 − 0.5); a = 0%.

7 0
3 years ago
Read 2 more answers
The after-tax cost of debt ________ the before-tax cost of debt for a firm that has a positive marginal tax rate.
11Alexandr11 [23.1K]

Answer:

the correct answer is

A) is always less than

8 0
3 years ago
as a young entrepreneur, how can you show the responsible ways of purchasing activities on any possible situations you may consi
Helen [10]

Answer:

There are several ways in which a young entrepreneur can carry out purchasing activities responsibly, including:

1. Measured production of inventory or units of products- If an entrepreneur is producing bicycles for instance, (s)he should only spend on inventory that (s)he anticipates will be sold to customers or purchased by retailers. For example, let's assume that the entrepreneur has a purchase order from a retailer such as K-Mart for 500 bicycles. In this case the entrepreneur should only produce around 550 bicycles rather than 700 or 1000 bikes, thus, purchasing supplies and producing inventory in accordance with demand for his/ her bicycles.

2. Lowering costs of production where possible- Firstly, this can be done by purchasing supplies and materials for inventory in bulk. Secondly, the entrepreneur could outsource the manufacturing of his/her product to countries (such as China) where production costs are significantly cheaper.

4 0
3 years ago
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided th
aivan3 [116]

Answer:

See below

Explanation:

Given the above information, the actual amount of fixed overhead cost incurred during the period is computed as

= Actual units produced × Fixed manufacturing overhead

Given that;

Actual units produced = 24,100

Fixed manufacturing overhead = $12

Then,

The actual cost of fixed overhead incurred for the period is;

= 24,100 × $12

= $289,200

4 0
3 years ago
Other questions:
  • Imagine that you work at a store which sells computer components and you have been made the facilitator of a group whose long te
    9·2 answers
  • Based on the problems you have seen so far at gearon, what type of crm applications will be most helpful to the company?
    9·2 answers
  • You just acquired a home mortgage for 30 years in the amount of $184,500 at 4.65 percent interest, compounded monthly. How much
    15·1 answer
  • At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is $3,500 (credit) before adjust
    13·1 answer
  • Vin diesel owns the fredonia barber shop. he employs 7 barbers and pays each a base rate of $1,380 per month. one of the barbers
    10·1 answer
  • What percentage tariff increase has nersa granted eskom for the financial period 2016/2017?
    5·1 answer
  • If Jane Brown closes her account at the First National Bank and uses the money instead to open a money market mutual fund​ accou
    5·1 answer
  • Which of these people is most likely a freelancer?
    11·2 answers
  • Which Energy career pathways work with renewable energy? Check all that apply.
    9·2 answers
  • Using the Online Self Study Certifications table, answer the following question: At what individual price would revenue be maxim
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!