Answer and Explanation:
The computation is shown below;
Percentage returns is
= (End value - Beginning value) ÷ Beginning value
= ($77.59 - $74.82) ÷ $74.82
= 3.70%
Now
APR is
= 3.70 × 2
= 7.40%
As the given months is six but we have to compute for 12 months that why we multiplied it by 2
And,
EAR = (1 + APR ÷ m)^m - 1
where
m = compounding periods
So,
= (1 + 0.074 ÷ 2)^2 - 1
=7.54%
Answer:
Market value of a corporation is its value according to the stock market. Book value on the other hand is the difference between assets and liabilities of a corporation.
Explanation:
The market value of a corporation is the value attributed to it by the financial market. It is calculated by multiplying the price of each share by the number of outstanding shares.
The book value is the value of the corporation if the assets are liquidated and liabilities are paid off. It is calculated by finding the difference between assets and liabilities.
If the market value of a corporation is greater than its book value it means the market does not believe that the company is worth what it has mentioned in its book value.
If the market value is higher than the book value, it indicates that the market has confidence in the corporation's ability to generate earnings in the future.
Answer:
2. People face trade-offs.
Explanation:
People face trade-off after cost and benefit analysis. for example, spending more time studying economics involve a benefit (a benefit is to get high marks in the subject). and cost is you could have spent that time doing something else, such as working in a restaurant to earn money. That is, your decision involves a trade-offs.
Answer:
if YTM at 4% price : $2,902.1237
if YTM at 8% price : $1,788.0448
The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value
Explanation:
the market price of the bond will be the present value of coupo payment and maturity:
C 150.000
time 30
rate 0.04
PV $2,593.8050
Maturity 1,000.00
time 30.00
rate 0.04
PV 308.32
PV c $2,593.8050
PV m $308.3187
Total $2,902.1237
No we repeat the process with the yield at 8%
C 150.000
time 30
rate 0.08
PV $1,688.6675
Maturity 1,000.00
time 30.00
rate 0.08
PV 99.38
PV c $1,688.6675
PV m $99.3773
Total $1,788.0448
Answer:
Carly will have $1,433 in her account at the end of 10 years.
Lara will have $1,280 in her account at the end of 10 years.
Explanation:
Simpe interest pays the simple trust on the principal amount. There is no reinvestment of interest.
In compounded Interest the Interest earned from the investment is reinvested and again interest on principal and interest amount reinvested is earned.
Carly Deposit balance
Principal amount = $800
Blance after 10 years = $800 ( 1+ 6% )^10 = $800 x 1.791 = $1,433
Lara Deposit balance
Principal amount = $800
Amount of Interest for 10 years = 800 x 6% x 10 = $480
Blance after 10 years = $800 + $480 = $1,280
