If you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.
<h3>What is the yield to maturity?</h3>
The yield to maturity (YTM) refers to the total rate of return earned by a bond when it makes all interest payments and repays the original principal.
YTM is equal to a bond's internal rate of return (IRR) if the bond were held to maturity.
<h3>Data and Calculations;</h3>
Face value of security = $500
Price paid today = $455
Yield to maturity = (Face Value/Current Price) x (1/Years to Maturity) - 1
= $500/$455 x 1/1 - 1
= 0.0989
OR
Yield in dollars = $45 ($500 - $455)
= 0.0989 ($45/$455 x 100)
Rate of return = 9% ($45/$500 x 100)
Thus, if you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.
Learn more about yield to maturity and rate of return at brainly.com/question/5524579
Answer:
Betsy needs to invest $8,000 in bonds and $52,000 in a CD
Explanation:
B = amount invested in bonds
C = amount invested in a CD
step 1:
B + C = 60,000
0.17B + 0.07C = 5,000
step 2:
C = 60,000 - B
step 3:
0.17B + 0.07(60,000 - B) = 5,000
step 4:
0.17B + 4,200 - 0.07B = 5,000
step 5:
0.1B = 800
step 6:
B = 800 / 0.1 = 8,000
C = 60,000 - B = 60,000 - 8,000 = 52,000
The lender will most likely take possession of his car when Eduardo failed to make any payments over the past few months on the car credit.
<h3>What is a
car credit?</h3>
A car credit is an arrangement of installment payment on a car with an agreement to pay certain amount at regular interval.
Hence, the lender will most likely take possession of his car when Eduardo failed to make any payments over the past few months on the car credit.
Therefore, the Option B is correct.
Read more about car credit
<em>brainly.com/question/24460932</em>
Answer:
A
Explanation:
The quantitative theory of money states that MV=PT.
M: money supply
V: velocity of circulation (number of times that a dollar changes of holder in a period)
P : price of a typical transaction
T: total number of transactions.
We can also write the equation as MV=PY, because the value of transactions is equal to the GDP (Y).
If M has a constant growth but there are fluctuations in V, then P, Y or both change.