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g100num [7]
2 years ago
10

the nominal rate of return is ___ earned by an investor in a bond that was purchased for $953, has an annual coupon of 4% and wa

s sold at the end of year for $1007
Business
1 answer:
Nataliya [291]2 years ago
3 0

Answer: 9.86%

Explanation:

Nominal rate of return given the above values can be calculated as:

= (Price - Purchase price + Coupon payment) / Purchase price

= (1,007 - 953 + 40) / 953

= 9.86%

<em>Coupon = Coupon rate * face value of bond which should be $1,000</em>

<em>= 4% * 1,000</em>

<em>= $40</em>

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tatyana61 [14]

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80  

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20  

The investment has a positive NPV,hence should be accepted

4 0
2 years ago
Residual Disability Income pays funds to the insured, to make up for what the insured would have earned after returning to work,
siniylev [52]

Answer:

The correct answer is Total disability.

Explanation:

The total disability can be the result of an illness, derive from a previous situation of temporary disability or consequence of an accident. Its determination implies a series of economic benefits linked to a specific degree of permanent disability.

8 0
3 years ago
1. The purpose of preparing a direct materials budget is to ________. a. allocate the cost of raw materials to production depart
worty [1.4K]

Answer:

1. Option c is correct option.

2. Option b is correct option.

Explanation:

Part 1. Direct material budget is prepared for  estimating the quantity of raw materials to be purchased. Following is the formula used for the computation of direct material budget:

D. Raw Material required to be purchased = Raw Material required for production + Desired closing Raw material for the last year - Opening Raw Material

Part 2. The desired ending raw material inventory for the last period.

And this is evident from the formula in the part 1 which tells that the desired closing raw material is that of the last year.

6 0
2 years ago
Which button in the Print Preview tab allows users to set specific margins on the page of a report?
Irina-Kira [14]

Answer:

Page Setup

Explanation:

Page set up allows users to determine how a print out will appear. The user can customize the page size and layout. The page setup dialog box is available under the Layout tab in the Ribbon menu.

Page layout makes it possible for users to set the print parameters. These parameters include paper size,  page orientation, page margins, and quality of the print.

6 0
2 years ago
Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement audi
Pie

Answer:

The answer is letter B

Explanation:

Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.

Because analytical procedures are evaluations of financial information made by study of plausible relationships among financial and nonfinancial data using models that range from simple to complex.  The reason is that income statement amount is based on transactions over a period of time, but balance sheet amounts are for a moment in time. Moreover, amounts subject to management discretion tend to be less predictable.

5 0
3 years ago
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