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g100num [7]
3 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]3 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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If you could purchase IBM stock and simultaneously sell the stock for $5 more, you would be involved in one type of economic act
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Answer:

arbitrage

Explanation:

Arbitrage can be defined as an act or process of buying buying and selling an asset simultaneously. Purchasing IBM stock and selling it for 5 dollar more simultaneously is an example of arbitrage. Such a seller is going to cash in on the price difference in buying and selling this stock. It is simply taking advantage of the difference in price that is gotten from buying and reselling this stock at 5dollars.

3 0
3 years ago
How could a government regulate a natural monopoly? Check all that apply. a.It could buy out the company and operate it instead.
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Answer: It could limit how much the company charges customers.  

It could insist a company get approval before making certain decisions.

A natural monopoly refers to a situation when one firm can cater to the entire market demand for a product. A natural monopoly can exist in an industry in because of high start-up costs, certain unique raw materials or processes or technologies that are required to run a business. In a natural monopoly, there is only one firm that benefits from very large economies of scale.

A government intervenes or regulates a natural monopoly primarily in order to protect consumer interests.  

A natural monopoly has the power to raise the prices of its products as per its wish, since it is the only supplier of the product. Hence the government looks into the cost history of the firm and fixes regulation. The government can also set a price that a firm can exceed over a fixed period of time. This is known as a price cap regulation.  

It is assumed that the natural monopoly will function in an economically rational manner. However, the government can insist that the natural monopoly get its approval before making certain decisions. This may occur due to a decision to decrease the quantity of goods produced.

5 0
3 years ago
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase wit
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Answer:

1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D

Explanation:

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Financial statements that give effect to a subsequent event as though the event had occurred at the balance sheet date are known
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Answer:

The correct answer to the following question is Pro forma financial statements.

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