1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Genrish500 [490]
3 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]3 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.  

You might be interested in
The demand curve for a monopolistically competitive firm is downward sloping because
BlackZzzverrR [31]

The demand curve for a monopolistically competitive firm is downward sloping because there is a full or advanced degree of the powerfulness in the market.

<h3>What is the shape of demand curve of the monopolistically competitive firm?</h3>

A downward sloping demand curve characterizes a monopolistically competitive corporation because there is a lot of power in the market.

This curve signaled that the business firm has extraordinary market power. As each firm offers a unique product, market dominance is derived from product differentiation.

Therefore, the demand curve of monopolistically competitive market is downward sloping.

To learn more about the demand curve, refer to:

brainly.com/question/13131242

#SPJ4

7 0
3 years ago
In a paragraph of no less than 125 words, describe how using active listening at work can help you be a better employee.
PolarNik [594]
Employees are encouraged to listen to managers when receiving instructions and getting updates on corporate policy. Much broader benefits can accrue for good employee listening skills beyond receiving directions for job duties. Help your employees understand the advantages of good listening skills by pointing out the ways in which, through heightened listening skills, both the employee and company can realize a higher level of success. <span>Employees who work on their listening skills find it easier to interpret meaning from conversations. Part of good listening is paying attention to the context the speaker is using and being able to put everything that is being said into that context.</span>
8 0
4 years ago
What would cause the prices to drop
Ganezh [65]
Things that would cause prices to drop would be the quantity if there is more of that thing the price drops or the value of that thing just drops.
3 0
4 years ago
Shen is concerned that a decline in interest rates might lead to annual income from his investments. If interest rates _________
Crank

Answer:

Decline

Increase

Increase

Bond with low interest rate.

Explanation:

A decline in interest rates might lead to a decline of annual income

and if interest rates increase the value of earnings from his investments will Increase

Given that his goal is to save for retirement and not to sell off, The bonds that poses the biggest risk is the bond with a low interest rate

8 0
3 years ago
An investment with more liquidity would be ideal for
ollegr [7]

Answer:

An investment with more liquidity would be ideal for someone who knows they will nee cash in the near future.

Explanation:

More liquid assets are those that can be  turn into cash more quickly than those that  less liquid assets.

If one is thinking about investing in a  liquid asset, surely is because it will need the cash in the short run. On the contrary, we could invest in other financial instruments less liquid (typically those who offer higher yields and have  longer terms), because we are not going to need the money for the moment, and we want to take advantage of that to get a higher yields.

8 0
4 years ago
Other questions:
  • According to the trait approach to studying leadership, _____ is consistently related to leadership emergence and leadership eff
    12·1 answer
  • Most messages are communicated through 55% _______.
    11·1 answer
  • A transaction should be treated as a(n) ________ when a company has an obligation or right to repurchase an asset for an amount
    14·1 answer
  • It is possible for an ancillary product to be both a consumer good and a business good.
    10·1 answer
  • Henry Carr and Noreen Mason formed a partnership, dividing income as follows: annual salary allowance to Carr of $40,000; intere
    14·1 answer
  • During August 2018​, Bingham Company recorded the​ following: bullet Sales of $ 68 comma 900 ​($ 55 comma 000 on​ account; $ 13
    8·1 answer
  • A feature common to both stock splits and stock dividends is: a That there is no effect on total stockholders" equity . b.A redu
    5·1 answer
  • On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:
    6·1 answer
  • Can a business have too many channel mem
    15·1 answer
  • you know that sales employees' motivation is low, and you would like managers to consider a bonus based on volume sales. the que
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!