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Katen [24]
3 years ago
15

Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with annual coupon payments.

The bonds are currently selling for $868. The bonds may be called in 6 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible?
a) 9.39%
b) 12.21%
c) 13.42%
d) 10.13%
e) 8.30%
Business
1 answer:
algol [13]3 years ago
8 0

Answer:

b) 12.21%

Explanation:

The computation of the quoted annual rate of return is shown below:

Given that

Future value = $1,000 × 108% = $1,080

Present value = $868

NPER = 6 years

PMT = $1,000 × 8% = $80

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

The present value comes in negative

After applying the above formula, the annual rate of return is 12.21%

Therefore the correct option is b.

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You just sold 500 shares of Wesley, Inc. stock at a price of $30.92 a share. Last year, you paid $32.04 a share to buy this stoc
Vitek1552 [10]

Answer:

-$560

Explanation:

The computation of capital gain on this investment is shown below:-

Capital gain = (Stock price - Paid shares) × Sold shares

where,

The Stock price is $30.92

Paid shares is $32.04

And, the sold shares is 500 shares

Now placing these values to the above formula

So, the capital gain on this investment is

= ($30.92 - $32.04) × 500

= -$1.12 × 500

= -$560

5 0
3 years ago
Two-year-old Max sees a rabbit and calls it a "bunny." He then sees a large white hamster and calls it a "bunny," too. In this s
Olegator [25]

Answer:

The correct answer is overextension.

Explanation:

In the context of language acquisition, it refers to the erroneous over-generalization in the use of a word; that is, to the error that consists in extending the application of words to entities or objects not included in the concept or category of reference, even if they share certain characteristics. For example, the word "dog" is used to correctly designate dogs; but it is also used in reference to any other animal with "four legs."

7 0
3 years ago
IT'S URGENT AND IMPORTANT!!!!
Vera_Pavlovna [14]

the producer in this case sujid is gaining a little more money because then when the profit is increased he will get a little less money because then the people will buy it but the money will be less for the producer(s)

4 0
3 years ago
Concord Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
nexus9112 [7]

Answer:

$2,317,000

Explanation:

The computation of the weighted-average accumulated expenditures for interest capitalization purposes is shown below:

For expenditure on March 1

= $1,932,000 × 10 months ÷ 12 months

= $1,610,000

On June 1

= $1,212,000 × 7 months ÷ 12 months

= $707,000

On December 31, it would be zero

So, the accumulated expenditures is

= $1,610,000 + $707,000

= $2,317,000

8 0
3 years ago
What is the opposite of a non convertible currency?
Cerrena [4.2K]
The opposite of a non convertible currency would be a convertible one

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3 years ago
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