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Maksim231197 [3]
3 years ago
12

A bond will pay $80 in interest at the end of each of the next three years, plus $1,000 at the end of the third year. If it has

a present market price of $950, its yield-to- maturity is: (a) 8.5%. (b) 9.4%. (c) 10%. (d) 10.5%. (e) 11.2%.
Business
1 answer:
Ipatiy [6.2K]3 years ago
7 0

Answer:

(c) 10%

Explanation:

The formula to calculate  the yield to maturity is:

YTM= [C+ (F-P) / n] / [(F+P) / 2]

C = Coupon Payment : $80

F = Face Value : $1,000

P = Price : $950

n = Years to maturity: 3

YTM= [80+(1000-950)/3]/(1000+950)/2]

YTM=[80+16.67]/975

YTM=96.67/975

YTM= 0.1 = 10%

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An investor purchased a property for $350,000. The investor paid a $150,000 down payment and obtained a $200,000 mortgage. The g
mylen [45]

Answer:2.68

Explanation:

divide the income into the expenses

8 0
2 years ago
Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy
Stels [109]

Answer:

The Earned Income credit

Explanation:

Many economists choose the earned income credit (EIC) over the increase in minimum wage because it avoids deadweight losses. Deadweight losses results when supply are demand are not in equilibrium (Market Inefficiency). Increases in minimum wages invariably leads to increase in prices of market goods which are overpriced. This leads to market Inefficiency.

So in trying to help low income earners, many economists choose the EIC over just increasing minimum wage.

The earned Income Credit helps certain tax payers with low incomes from work in a particular tax year. It reduces the amount of tax owed and may result in a refund to the tax payers if the amount of credit is greater than the amount of tax owed.

8 0
3 years ago
4. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. TIP
AlexFokin [52]

The most important factor in the work process or industry is to retain the interest of the employee. And to retain them, their salary or profit must be adjusted to the best value. Unless the employee does not do his job properly, employees must receive bonuses or benefits to ensure them to stay in the company. It will actually make them stay longer, make them feel important and reduce costs for hiring new employees.

6 0
3 years ago
A stock will have a loss of 13.6 percent in a recession, a return of 12.3 percent in a normal economy, and a return of 27 percen
SpyIntel [72]

Answer:

Standard deviation =21.34

Explanation:

<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .</em>

<em>Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios</em>

Expected return (r) = (13.6% × 0.33 ) +  (12.3% × 0.36)  + (27%× 0.31)=17.3%

Outcome           R       (R- r )^2           P×(R- r )^2

Recession        13.6       13.6                 4.5

Normal         12.3         24.9                  8.9

Boom           27%        94.4              <u>     29.3 </u>

Total                                                <u>   42.7 </u>

Standard deviation = √42.7 = 21.34

Standard deviation =21.34

3 0
3 years ago
At the start of football season, the ticket office gets very busy the day before the first game. Customers arrive at the rate of
ipn [44]

Answer:

(a) 3.2

(b) 10 minutes

(c) 0.8

Explanation:

Mean number of customer in service:

= Arrival rate ÷ service rate

= 24 in 60 min ÷ 30 in 60 min

= 24 ÷ 30

= 0.8

a) Average number of people in line:

= (Mean number of customer in service × arrival rate) ÷ (Service rate - arrival rate)

= 0.8 × (24 ÷ 6 )

= 3.2

b) Average time spend at the ticket office is = 10 minutes

c) Proportion of time server is busy:

= Arrival rate ÷  service rate

= (24 in 60 min ÷  30 in 60 min)

= 24 ÷ 30

= 0.8

7 0
3 years ago
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