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alex41 [277]
3 years ago
7

A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The

actual yield to maturity on this bond is ________. (Hint: use financial calculator to get I/Y. PMT is 4% of par value.) 8.82% 9.62% 9.12% 7.24%
Business
1 answer:
olganol [36]3 years ago
3 0

Answer:

9.62%.

Explanation:

Set the values of the bond on the financial calculator as follows :

PV = - $785

FV = $1,000

PMT = $1,000 x 4% = $40

P/YR = 1

N = 5

I/YR = ??

Here the question requires us to determine the value of the yield to maturity or I/YR.

Inputting the values as above in the financial calculator gives the I/YR as 9.62%.

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Because if you’re going to be a Digital DESIGNER you want to have skills in a artistic way.

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3 years ago
If a portfolio had a return of 8%, the risk-free asset return was 3%, and the standard deviation of the portfolio's excess retur
atroni [7]

Answer: 25%

Explanation:

The Sharpe Ratio will be calculated by using the formula:

= (​Rp​−Rf)/σp

​​where,

Rp ​= return of portfolio = 0.08

Rf​ = risk-free rate = 0.03

σp​ = standard deviation of portfolio’s excess return​ = 0.20

Therefore, Sharpe Ratio will be:

= (​Rp​−Rf)/σp

= (0.08 - 0.03)/0.20

= 0.05/0.20

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The Sharpe ratio is 25%.

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3 years ago
In setting prices for products and services, managers may attempt to charge what the customer is willing to pay however, too hig
avanturin [10]

In setting prices for products and services, too high a price may <u>A. deter a customer</u> from purchasing a product, causing them to seek alternatives.

<h3>What are the factors involved in setting prices?</h3>

When setting prices of goods and services, managers should consider these factors:

  • Production costs
  • Organizational goals
  • Marketing Objectives
  • Marketing Mix Strategy
  • The Market demand
  • Competitors' costs, prices, and offers
  • Price and Value perception of consumers.

<h3>Answer Options:</h3>

A. deter a customer from purchasing a product and seek alternatives

B. decrease a​ competitor's market share

C. indicate supply is too plentiful

D. increase demand and demand for the product.

Thus, in setting prices for products and services, too high a price may <u>A. deter a customer</u> from purchasing a product, causing them to seek alternatives.

Learn more about price setting at brainly.com/question/2597371

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5 0
2 years ago
Roles of competition policy authorities<br>​
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Answer:

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6 0
3 years ago
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Ivahew [28]

Answer: Option (C) is correct

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