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Scilla [17]
3 years ago
9

Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase,

it had an expected YTM of 8%. After receiving the coupon, you sold the bond today for $939.05. What is your return rate in one year? (Hint: find out how much did you pay for the bond last year?)
Business
1 answer:
xenn [34]3 years ago
6 0

Answer:

Rate of return = 6.64%

Explanation:

Annual coupon rate = 7.5% = 0.075

Face value = 1,000

Coupon payment = 1,000*0.075 = 75

YTM = 8%

Years = 20

Price of the bond = PV(8%, 20, 75, 7.5%)

Price of the bond = $950.91

Rate of return = Selling price + Coupon payment received - Purchase price / Purchase price

Rate of return = $939.05 + $75 - $950.91 / $950.91

Rate of return = $63.14 / $950.91

Rate of return = 0.0663996

Rate of return = 6.64%

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The correct answer for this question is this one: "D.30 to 40." SAT scores generally fall 30 to 40 points above or below a student's true ability. SAT <span>is a standardized test widely used for college admissions in the United States. </span>
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Partners Gary and Elaine have agreed to share profits and 1osses in an 80:20 ratio respectively, after Gary is allowed a salary
Verizon [17]

Answer:

E) None of the above

Explanation:

In partnership, the partners earn profit. The salary allowances are considered as though paid to a third party and are considered before arriving at the net income.

As such, given that net income is $30,000 and is to be shared in the ratio 80:20 between Gary and Elaine respectively.

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5 0
3 years ago
Suppose the exchange rate is 10 pesos per dollar and you use $1000 to purchase a one-year mexican bond that pays 10% interest. N
Iteru [2.4K]

The amount of money I would have in US dollars would be $1,000

<h3>How much would I have in US dollars?</h3>

The first step is to convert dollars to pesos:

$1000 x 10 = 10,000 pesos

The second step is to determine the value of the investment in a year's time: (1.10) x 10,000 = 11,000 pesos

Now, convert pesos to dollars : 11,000 / 11 = $1,000

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6 0
2 years ago
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.9 hours
topjm [15]

Answer:

-$30,250 favorable

Explanation:

labor efficiency variance = (standard quantity - actual quantity) x standard labor cost

  • actual quantity = 7,700 hours
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labor efficiency variance = (7,700 - 9,900) x $13.70 = -$30,250 favorable variance

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5 0
3 years ago
Having just finalized its new tablet design, Epic Electronics's marketing team plans to begin a rollout with ________ to only on
wlad13 [49]

Answer:

Exclusive distribution; Selective distribution; Intensive distribution

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Exclusive distribution refers to the phenomenon where only certain retailers are given the opportunity to carry the product in their retailer shops. For example as in the above case, only one store is exclusively chosen.

Selective distribution is that retailers are carefully selected to engage in the product of selling. For example only a few stores are engaged with in the above question.

Intensive distribution is when all kind of retailers are given the opportunity to keep the products in their shops. For example the last phase described in the question where all sorts of retailers are engaged in selling activity.

4 0
4 years ago
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