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lesya692 [45]
3 years ago
15

You are currently earning 12% (APR) compounded semiannually. Your investment company is switching all accounts to daily compound

ing. What rate will give you the same effective annual rate of return as you are receiving now
Business
1 answer:
Sav [38]3 years ago
6 0

Answer:

The rate that will give the same effective annual rate of return is 0.033%.

Explanation:

a) Data and Calculations:

APR = 12%

Semi-annual compound rate = 6% (12/2)

Assumed calendar days in a year = 360 days

Effective daily rate of return = 12%/360 = 0.033%

b) The conversion of semi-annual compounding to daily compounding results in reduced rate of return.  In this case, we assume that there are 360 days in a year.  Since the APR = 12%, it means that the daily rate of return will be 12%/360, which is 0.033%.

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Caribbean Reef Software has 8.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannual payments
Zepler [3.9K]

Answer:

9.14%

Explanation:

Calculation for YTM

First step is to use financial calculator to find the I which represent Interest rate

FV = 1,000

PMT= 1,000*8.4%/2= 42

N= 9years*2= 18

PV= -955

Hence,

I= 4.57%

Now let calculate YTM

YTM = 4.57%*2

YTM =9.14%

Therefore YTM will be 9.14%

5 0
3 years ago
Consumers are limited in the total utility that they can gain from buying products because they have limited
Cloud [144]

Answer: income i think

Explanation:

6 0
3 years ago
If the time between the pretest and the posttest is very short, then
sertanlavr [38]
You will see positive learning, less likely to forget, information is fresh.
8 0
3 years ago
On December 1, 20X4, Line Corp. received a donation of 2,000 shares of its $5 par value common stock from a stockholder. On that
Brrunno [24]

Answer:

$0

Explanation:

The shares that are donated is treated as the treasury shares. The treasury stock and the gain or the revneue account rise the stock market value. If there is an increase in the treasury stock so it reduced the stockholder equity but on the other hand the gain or revenue increase the owner equity

So overall there is no net effect

hence, the amount should be $0

7 0
3 years ago
​(A) What price should the company charge for the​ phones, and how many phones should be produced to maximize the weekly​ revenu
vladimir1956 [14]

Answer:

2500 phones produced at $250 per phone

Max weekly revenue would be $625,000.

Explanation:

p = 500 - 0.1x

p is the price per unit

revenue = quantity * price/unit  

R(x) = revenue = p(x)*x = 500x - 0.1x²

p(x) maximum when first derivative is set to 0

500 - 0.2x = 0 ==> x = 500/0.2 = 2500 quantities

price/unit : p = 500 - 0.1*2500 = 500 - 250 = 250

revenue :  

r(2500) = 500*2500 - 0.1*2500²

r(2500) = 2500(500 - 250) = 625000

The company should produce 2500 phones each week at a price of $250

The maximum weekly revenue is $625000

6 0
3 years ago
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