Answer:
$663.5
Explanation:
given that
number of years remaining = 4 years
yield to maturity ratio = 10.8% = 1.108
Par value = $1000
Current yield takes a look at the current price of a bond, instead of looking at it from a face value. That being said, it can be calculated mathematically as
Current yield = 1000 / 1.108^4
Current yield = 1000 / 1.507
Current yield = $663.5
Therefore, the current yield from the question we are given, is found to be $663.5.
I hope that helps
Answer:
11.1%
Explanation:
The face value is $5000
It is sold for $4,500
Therefore the interest rate of this bond can be calculated as follows
$5000-$4500
= 500
500/4500 × 100
= 0.111 × 100
= 11.1%
Hence the interest rate is 11.1%
Answer:
nominal interest rate
Explanation:
Titan State Bank offer of 6% interest is a quoted interest rate. A quoted interest rate is also annual payable rate (APR) and in this case, it is compounded quarterly. Additionally, since this quoted rate does not take into account the inflation rate, it is referred as a Nominal interest rate. However, when that nominal rate of 6% is adjusted for inflation, the rate you earn is the Real interest rate which you calculate using the Fisher equation.
Answer:
Explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price = 
= 
= 0.1818
% Change in Quantity demanded
=
= 
= -0.2857
Thus,
Price elasticity of demand = 
= 
= -1.5715
Therefore, the price elasticity of demand = -1.5715
Answer:
The answer about A static budget would be
Explanation:
A static budget is a type of budget that incorporates anticipated values on inputs and products that are conceived before the period in question begins. When compared to the actual results that are received after the fact, the static budget figures are often very different from the actual results.
The static budget is intended to be fixed and unchanged throughout the period, regardless of fluctuations that may affect the results.
For example, under a static budget a company would establish an anticipated expense, say $ 30,000 for a marketing campaign, for the duration of the period. It is then up to the managers to adhere to that budget, regardless of how the cost of generating that campaign really stays during the period.
This type of budgeting is limited by the ability of an organization to accurately forecast what its needs are, how much it will spend to meet them and what its operating income will be during the period. Static budgets can be more effective for organizations that have highly predictable sales and costs, and for shorter periods of time.
For example, if a company sees the same costs in materials, profits, labor, advertising and production month after month to maintain its operations and there is no expectation of change, a static budget may be adequate for its needs.
