Insurance Reading Quiz

Wilson Wonders's bonds have 12 years remaining to maturity. Interest is paid annu- ally, the bonds have a S1,000 par value, and

MAXImum [283]

Answer:

approximate YTM = 12.16%.

Explanation:

the approximate yield to maturity = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

approximate yield to maturity = {100 + [(1,000 - 850) / 12]} / [(1,000 + 850) / 2] = 112.5 / 925 = 0.1216 = 12.16%

An investor that purchases this bond at $850 can expect to earn a 12.16% return.

3 0

3 years ago

Your accountants tell you that it costs $400 to set up an immunization program at a preschool and immunize one child against pol

Inessa05 [86]

1) cost per child = 400

2) cost per child for these additional 20 children = 460/ 20 = $ 23

3) the average cost per child = (400 + 460)/ 21 = 860 / 21 = $ 40. 952

4) The above result show that the cost of polio vaccine is less which is only $23. But the setting up immunization program & other necessary associated works have adds up to a higher cost of $ 40. 952. This can be reduced if more nos. of children are involved in the immunization program.

Also, the cost of setting up immunization program will be same for one child or more than one. Only the cost of polio vaccine will vary when the nos. of participating will increase.

8 0

3 years ago

Chloe and Tamara start a vintage fashion boutique. While both invest equally in the store and are entitled to equal profits, it

WINSTONCH [101]

Answer:

Silent partner.

Explanation:

Chloe is a silent partner in this vintage fashion boutique. A silent partner or sleeping partner is that who invest in the business and have still shares in the profits and losses of the business, but who is not involved in day-to-day business transactions and in its management and his/her personal property is not at risk in case the business suffers losses as here Chloe and Tamara invested equally but Chloe is not taking part in the management of the business but still shares the profit and loss occurred but her personal property is not at risk in case of firm's insolvency.