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konstantin123 [22]
3 years ago
11

Abigail purchases a 5-year, 10,000 bond that pays 3.5% annual coupons and matures at par. She pays 6,000 for the bond and also d

eposits the coupons into an account which earns 7.5% interest. What is her total yield rate on the 6000 investment once the bond matures
Business
1 answer:
BARSIC [14]3 years ago
8 0

Answer:

the total yield rate on 6,000 investment is 14.9328%

Explanation:

The computation of the total yield rate is as follows:

= ((Annual coupon rate × bond ÷ interest earned percentgae × (1 + interest earned percentage - 1) + bond) ÷ (bond))^(1 ÷ time period) -1

= ((3.5% × 10,000 ÷ 7.5% × (1.075^5 - 1) + 10,000) ÷ (6,000))^(1 ÷ 5) - 1

= 14.9328%

Hence, the total yield rate on 6,000 investment is 14.9328%

The same is to be considered

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4 years ago
In a sandwich shop, 3 workers are able to make 45 sandwiches in an hour during the lunch rush. When a 4th worker is added, the t
Maksim231197 [3]

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Is a liability that represents the amount the company owes to others as a result of issuing a promissory note.
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A note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.

<h3>What is a note payable?</h3>

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