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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%

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patriot [66]

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Gross profit equals $420,000

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To get gross profit , we only discount the cost of goods sold from the Total sales

Gross profit Formula= net sales – cost of goods sold

Gross profit =$800,000- $380,000

Gross profit =$420,000

We use sales returns and allowances, sales discounts and operating expenses to get net income.

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3 years ago
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3 years ago
What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month? set all to zero ex
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The amount is specified in both job offer letters and paychecks. Overtime, bonuses, and commissions are all possible sources of additional gross monthly income. Gross pay is related. Your gross income will also help you budget and figure out how much money you'll have to save for retirement.

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8 0
2 years ago
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boyakko [2]

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1.  economic growth;

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Hence, The neoclassical view holds that long-term expansion of potential GDP due to ECONOMIC GROWTH will determine THE SIZE OF THE ECONOMY

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3 years ago
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Anna007 [38]

The fixed budget indicates sales of $50,000. actual sales were $55,000. The variance is $5,000 favorable.

The variance is a measure of variability. it's far calculated by taking the average of squared deviations from the mean. Variance tells you the diploma of unfold in your information set. The more unfold the data, the larger the variance is in relation to the mean.

In opportunity idea and information, variance is the expectation of the squared deviation of a random variable from its populace imply or sample suggest. Variance is a measure of dispersion, that means it's far a degree of the way a long way a fixed of numbers is spread out from their average price.

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