Given:
Duration = 10 years
Yield to maturity = 10%
To find: Bond volatility.
Solution:
Volatility (in percentage) = Duration / (1+yield)
Now putting values in the formula,
10 / (1+10%)
10/ (1+10/100)
10/(1+0.1)
10/1.1 = 9.09%
So, bond volatility is 9.09%.
Answer:
$0
Explanation:
The computation of the value of firm profit is shown below:
As we know that
Profit = Total revenue - Total cost
where,
Total revenue is
= 10 widgets × $15
= $150
And,
Total cost = Variable cost + Fixed cost
= 10 widgets × $13 + $20
= $130 + $20
= $150
So, the profit is
= $150 - $150
= $0
Hence the firm is in break-even point where there is no profit or no loss
Answer:
$2,000
Explanation:
The dividend here can be calculated using the following formula:
Dividend paid = (Closing Retained Earnings - Opening Retained Earnings + Profit for the year)
Here,
Closing Retained Earnings is $157,000
Opening Retained Earnings is $65,000
And
Profit for the year is $94,000
By putting values, we have:
Dividend paid = $65,000 + $94,000 - $157,000
= $2,000
The answer is specialty store. This type of retail store
focuses more on providing or selling products that has a specific category in which
they hold one type of category that are being separated from other categories when selling or producing products to their
retail business in which one example can be a men’s clothing and women's clothing.
Answer:
the exact internal rate of return is 40%
Explanation:
The computation of the exact internal rate of return is shown below
Given that
Initial investment = -$89,000
Year 1 to Year 18 = $35,684 each year
Based on the above information
We use the IRR formula
= IRR()
After applying the internal rate of return formula, the exact internal rate of return is 40%
So the same is considered and relevant too