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
Verizon [17]
3 years ago
15

A newly issued bond pays its coupons once annually. Its coupon rate is 5.7%, its maturity is 20 years, and its yield to maturity

is 8.5%. a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 7.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
garri49 [273]3 years ago
7 0

Answer:

16.56%

Explanation:

Intial Price, P0=753.03

when n=20, pmt=57 ,fv=1,000 ,i=8.5

Next year price = P1= $820.74

when n=19, pmt= 57, fv =1,000, i= 7.5

HPR=$57+(820.74-75303) / $753.03

HPR= 0.165611 = 16.56%

The holding period return is 16.56%

You might be interested in
Which of the following are examples of natural barriers to entry? Correct Answer(s) Drag appropriate answer(s) here Smaller comp
andreyandreev [35.5K]

Answer:

These are correct:

  • Smaller companies with smaller production processes have higher per unit costs than larger companies. - smaller firms find it harder to adopt economies of scale to reduce costs.
  • Over time, a firm takes control of 85% of the world’s supply of a chemical used in the production of plastic. - the firm has almost total control over a scarce resource, and new competitors have to scramble for the remaning 15%. (note: this is a natural barrier to entry as long as the pharmaceutical company did not collude with the government to reach such a high market share, in said case, it would be an artificial barrier to entry).
  • Lenders are hesitant to provide funding for new firms that will compete with a large, well-established firm. - a small firm may lack market credibility in the financial markets, because investors are hesitant about the future of the company, or do not expect high rates of return.

5 0
3 years ago
Many people have argued that an income tax should be​ "marriage neutral," that​ is, two people should pay the same total tax whe
worty [1.4K]

Answer:

Ben would pay more in taxes.

Explanation:

A progressive income tax increases the tax rate as the taxpayer earns more money.

In this case, Ben would be taxed as earnings $60,000 which is probably a much higher tax rate than the applicable one for $30,000. If we use the current tax brackets for 2020, Ben would fall under the 22% tax bracket while both Cathy and Dylan would fall under the 12% tax bracket. Obviously Ben would pay much more in taxes.

7 0
3 years ago
The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose
olchik [2.2K]

Answer:

Debit Bad Debt Expense; Credit Accounts Receivable

Explanation:

Bad debts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense.

When a cash payment is received from the debtor, cash is increased and the accounts receivable is decreased. When recording the transaction, cash is debited, and accounts receivable are credited.

8 0
3 years ago
The valuation of marketable securities on the balance sheet requires the securities on the balance sheet requires the separation
Zarrin [17]

Answer: True

Explanation:

The valuation of marketable securities on the balance sheet requires the securities on the balance sheet requires the separation of investment securities into three categories.

The categories are held to maturity which are the securities that are bought and then kept until they mature; the trading securities and then the securities that are available for sale.

5 0
3 years ago
management's refusal to let workers enter a plant or building to work is a: question 25 options: 1) boycott 2) reverse strike 3)
BigorU [14]

Management's refusal to let workers enter a plant or building to work is option 4) lockout.

A lockout is a state of affairs during which employers shut an area of labor and stop employees from coming into it till the employees settle for the employer's new proposals on pay or conditions of labor. [business] The opposition might resume if no new contract agreement is signed.

Strike action, conjointly referred to as labor strike, labour strike, or just strike, may be a job action caused by the mass refusal of workers to figure. A strike typically takes place in response to worker grievances. Strikes became common throughout the commercial Revolution, once mass labor became vital in factories and mines.

To learn more about lockout here

brainly.com/question/28171151

#SPJ4

4 0
1 year ago
Other questions:
  • Which of these statements regarding Regal Marine is TRUE? Product design is a critical decision for the firm. Regal uses a three
    10·1 answer
  • I need help with Family and Consumer Science questions! If you do not know do not answer!
    11·1 answer
  • Adamis the owner/operator of a flower shop. Last year he earned $250,000 in total revenue. His explicit costs were $175,000 paid
    6·1 answer
  • Blake has managed several restaurants for over 50 years and is close to retirement. With his maturity and business experience, h
    9·1 answer
  • The rate of economic growth per capita in france from 1996 to 2000 was 1.9% per year, while in korea over the same period it was
    6·1 answer
  • One way for a country to curb runaway inflation is to​ ________.
    8·1 answer
  • Provide an economic argument for why the U.S. is home to 25% of global prisoners.
    13·1 answer
  • According to the text, minimum-wage laws cause increases in:_________.
    7·1 answer
  • Leon has attended several seminars about managing a diverse workforce. After completing a survey, he determines that he is able
    14·2 answers
  • The _______ section of the marketing plan consists of a detailed description of the article being offered.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!