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Genrish500 [490]
2 years ago
6

What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 7 years if the current price is $500. Plea

se specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Business
1 answer:
Softa [21]2 years ago
6 0

Answer:

0.104

Explanation:

We are to determine the yield to maturity of the bond

yield to maturity can be determined using a financial calculator

Cash flow in year 0 = -500

Cash flow each year from year 1 to 6 = 0

Cash flow in year 7 = 1000

YTM = 10.4%

To find the YTM using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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Which highest and best use criterion would require an appraiser to consider the frontage of the site?
Bond [772]

physically possible is the highest and best use criterion that would require an appraiser to consider the frontage of the site.

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8 0
1 year ago
4. What are the main political and economic risks that ABB must deal with given that it has a strong focus on entering emerging
Yuki888 [10]

The main political and economic risks which ABB <em>must deal with</em> given that it has a strong focus on <em>entering emerging economies </em>is:

  • The stability of the national government

According to the given question, we are asked to state the  main political and economic risks which ABB <em>must deal with</em> given that it has a strong focus on <em>entering emerging economies.</em>

As a result of this, we can see that when a company or an organisation wants to do business in a new and emerging economy in a county, the major political and economic risks which they have to consider is the stability of the national government so that their business would not be suddenly affected by government policies or wars.

Read more about national government here:

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5 0
2 years ago
Stock in dragula industries has a beta of 1.1. the market risk premium is 7 percent, and t-bills are currently yielding 4.5 perc
antiseptic1488 [7]
Idk i just need points Lol.
8 0
3 years ago
You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost
Finger [1]

Answer:

False

Explanation:

Since for finding out whether the offer is accepted or not, first we have to determine the total cost at 600 number of players and for 601 number of players which is

The total cost of 600 players is

= 600 × $300

= $180,000

The total cost of 601 players is

= 601 × $301

= $180,901

Now the marginal cost is 601 player is $901 which is difference between the $180,000 and $180,901 that is higher than the offered price i.e $550

Therefore, the offer should not be accepted

6 0
3 years ago
According to kaplan and norton, _______ maps are "visual representations of a company's critical objectives and the crucial rela
Yuki888 [10]
Strategy Map  - A strategy map is very crucial for an organization to accomplish its objectives. It allows businesses to devise and implement a good company strategy, find gaps in the strategy, describe the strategy to employees, and test the strategy to allow for adjustments if necessary.
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