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Reil [10]
3 years ago
13

You have the following information regarding a bond that pays semi-annual coupon payments: Time to maturity is 12 years Coupon R

ate is 6% The current price (PV) of the bond is $1,189.14 today. Compute the I/T Periodic rate on the bond that is required by the market. State as a percent without using the percent sign and round to the second decimal place. Hence, 23.628% would be written as 23.63 for the response to be correct.
Business
1 answer:
IrinaK [193]3 years ago
7 0

Answer: 2%

Explanation:

As the coupon payments are semi-annual, you need to convert the other measures to semi-annual measures as well.

Coupon rate = 6%/2 = 3% per semi annum

Coupon payment = 3% * 1,000 which is par value = $30

Time to maturity = 12 * 2 = 24 semi annual periods

Price is still the same = $1,189.14

You can use an Excel worksheet to solve for the Yield:

Number of periods = 24

Payment = $30

PV = 1,189.14

FV is par value of $1,000

Periodic rate is 0.019999

= 2%

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Answer:

B

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To get the cost recorded we do the following;

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8 0
4 years ago
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Over a certain period, large-company stocks had an average return of 12.59 percent, the average risk-free rate was 2.58 percent,
suter [353]

Answer:

The answer is 14.87%

Explanation:

Solution

Given that:

A large company stock had an average return of =12.59%

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The next step is to find the risk premium on small-company stocks for this period

Thus,

The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate

So,

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6 0
3 years ago
I need the answer asap
romanna [79]

Answer:

D. 1,237.18

Hope it helps :^)

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Assume that Japan and Korea each has 2400 hours available. Originally, each country divided its time equally between the product
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Since 60minutes = 1 hour

2400 ÷ 60

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The law of comparative advantage states that a country will specialise in producing commodities in which the country has greatest comparative advantage. Therefore a country will produce for export those commodities she can produce cheaply than other countries.

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Answer:

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