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igor_vitrenko [27]
3 years ago
10

A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to

maturity
a. 9.32%
b. 8.33%
c. 7.92%
d. 9.45%
e. 8.61%
Business
1 answer:
photoshop1234 [79]3 years ago
6 0

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

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Decrease in money demand shifts the (IS/LM ) curve to the _____________ and leads to a ________________ in Y and ______________
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Answer:

LM curve will shift left and lead to decrease in Y and increase in r.

Explanation:

When money demand decreases, it will cause LM curve to shift up to the left. There will be decrease in Fed which causes decrease in money supply. The upward shift of LM curve will lower the income and raise interest rates.

3 0
3 years ago
If you have serious concerns about the qualifications of a job candidate who has asked you for a written recommendation, you sho
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Answer:

elect not to write the recommendation.

Explanation:

A job recommendation is a way of vouching for a person's behaviour, honesty, and qualifications to perform a job.

On important step before giving recommendations is to think carefully if you know and trust the person sufficiently to vouch for him.

If a recommendation is written about person and he fails to perform well, the person that wrote the recommendation will lose credibility and his career may be adversely affected.

In this instance since there are serious concerns about the qualifications of a job candidate who has asked you for a written recommendation, elect not to write the recommendation

3 0
3 years ago
A house is closed on October 15. The annual insurance payment is $578 for the fiscal year of July 1 to June 30. The buyers will
Brums [2.3K]

Answer:

$313

Explanation:

In order to divide the insurance bill between the seller and the buyer, we must first determine the insurance cost per month. We first divide the total premium by 12 months = $578 / 12 = $48.17 per month.

The seller is responsible for paying insurance during June, July, August, September and half of October (15 days). So the seller's share of the bill = 5.5 months x $48.17 = $264.92 ≈ $265

So the buyer owes the seller the difference between the total premium paid and $265 = $578 - $265 = $313

5 0
3 years ago
Brittni is an account executive for a financial services firm that specializes in employee benefits services. She is meeting wit
zalisa [80]

Answer:

New task purchase

Explanation:

New task purchase is the one purchase decision that has not been done previously by the business as they did not have the need for a new product/task. The new purchase is different from re-purchase as a new purchase will require a lot of evaluation from the buyer both for the product they intend to purchase and the vendor that they want to purchase from. New task purchase is usually done by a company when a need is recognized within the organization. This need may come internally from the firm or may have come from externally (e.g. clients).

After the need is recognized the company tries to evaluate several products that can satisfy this need and also looks for consultants/vendors that can provide solutions for the need. During this process a company will look at several vendors and evaluate them for their capabilities to serve the product/service. After the initial qualification check the company asks all the eligible suppliers/vendors to submit their bids (also called the tendering process).

After evaluation of the bids the firm may decide to purchase the product/service from any of the vendor which suits its needs best. Many companies usually go for the lowest price bids when there is no difference in the product of different supplier and the purchase decision is made.

After the purchase decision the companies usually re-evaluate their purchases and then decide about the future purchases of similar product.

5 0
4 years ago
Which economic term is considered a resource?
chubhunter [2.5K]

A-land

comprises all naturally occurring resources

8 0
4 years ago
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