Answer:
17%
Explanation:
Purchase price of bond = $921.77
Years investment held = n = 7
Coupon rate = C = 15%
Frequency of payment = m = 2
Annual coupon = $1,000 × (0.15/2) = $75.00
Realized Yield = i
Selling price of bond = PB = $961.22
The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.
Answer:
Growth Rate = 5.73%
Explanation:
The present value of stock formula can be used here to solve this problem.
The formula is:
Where
is the current stock price
is the dividend to be paid next year
r is the rate of return required
g is the growth rate expected
Now, the first 3 variables are given, we need to find g. Substituting, we find our answer:
In percentage, it is
<u>Growth Rate = 5.73%</u>
Answer:
Countries become better at making the product they specialize in. Consumer benefits: Specialization means that the opportunity cost of production is lower, which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantity of goods.
Explanation:
Answer:
401 retairement plan
Explanation:
A 401(k) is a retirement plan based on savings with the contribution of the employer. The contribution made by the employer and portion of the wage that is saved is collected before taxes.
<span>The board of governors of the federal reserve system can increase commercial bank reserves by increasing the size of its term auction facility.</span>
