The length of employment at a particular institution is termed tenure.
Answer:
Return = 29.64%
Explanation:
As per the data given in the question,
Time = 20 years
Interest = $90
Face value = $1,000
Rate = 10%
Current price of the bond = interest [1 - (1-rate)^(-time)] ÷ rate + Face value × (1+r)^(-time)
= 90 [1 - (1-0.10)^(-20)] ÷ 0.10 + $1,000 × (1+0.10)^(-20)
= 90 × 8.5136 + $1,000 × 0.14864
= $914.864
Price of the bond after 1 year = 90[1-(1-0.08)^(-19)] ÷ 0.08 + $1,000 × (1+0.08)^(-19)
= 90 × 9.6036 + $1,000 × 0.23171
= $1,096.04
Return = Ending price + Coupon - Beginning price ) ÷ Beginning price
= ($1,096.04 + 90 - $914.864) ÷ $914.864
= 0.2964
= 29.64 %
Answer:
14.23%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = –$ 33,000
Cash flow in year 1 = 13,400
Cash flow in year 2 = 18,300
Cash flow in year 3 = 10,800
IRR = 14.23%
To find the IRR 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.
Answer:
C. indirect; 142.86
Explanation:
Simply put, quotation shows the trading relation between two currencies. There are two basic types of quotation:
- direct quotation represents the value of foreign currency compared to domestic one (in this case a dollar). So, direct quotation represents the value of foreign currency in dollars.
- indirect quotation, on the other hand, does the opposite; it compares domestic currency (a dollar) to a foreign one. Or, indirect quotation represents the number of units of foreign currency per dollar.
So, with this in mind, number of yen per dollar is indirect quotation and its value is calculated when we divide 1 with direct quotation, which is 1/0.007, which equals to 142.86
