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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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a 1000 par value 18-year bond with annual coupons is bought to yield an annual effective rate of 5%. the amount for amortization
marta [7]

The book value of the bond at the end of year 10 is 1,160

What is the basis for determining premium amortization?

The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.

Total premium on bond issuance=20*18

total premium on bond issuance=360

bond price issued price=par value+ premium=1000+360=1360

As at the end of the 10th year, bond premium amortized thus far is 20 multiplied by 10 years

bond premium amortized=20*10=200

book value of the bond at the end of year 10=1360-200

book value of the bond at the end of year 10=1,160

Find out more about bond premium on:brainly.com/question/14814327

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3 0
1 year ago
Joanna Grimshaw makes an hourly rate of $12.50, and she works 40 hours per week. Her boss offers her a promotion to a salaried p
MaRussiya [10]

Answer:

$175 more

Explanation:

She makes 500 without the promotion and 675 minus 500 is 175

5 0
3 years ago
Read 2 more answers
Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bond
Ivan

Answer:

The answer is: $18,289.50

Explanation:

The interest earned from the investment in Birmingham Bonds is not included in Mitch's gross income.

If Mitch earned $100,000, so he will fall under the fourth bracket for single filers.

He will have to pay $14,089.50 plus 24% of any income over $82,500.

taxes due = $14,089.50 + [($100,000 - $82,500) x 24%]

taxes due = $14,089.50 + $4,200 = $18,289.50

6 0
3 years ago
Why is the primary sector important to the South African economy?​
Fynjy0 [20]

Answer:

However, the economy has been characterised by a structural shift in output over the past four decades.

Since the early 1990s, economic growth has been driven mainly by the tertiary sector – which includes wholesale and retail trade, tourism and communications. Now South Africa is moving towards becoming a knowledge-based economy, with a greater focus on technology, e-commerce and financial and other services.

Among the key sectors that contribute to the gross domestic product and keep the economic engine running are manufacturing, retail, financial services, communications, mining, agriculture and tourism.

Explanation:

South Africa’s economy has traditionally been in the primary sectors – the result of a wealth of mineral resources and favourable agricultural conditions.

4 0
2 years ago
Assume the cost of aluminum used by soft-drink companies increases. Which of the following correctly describes the resulting eff
EastWind [94]

Answer:

III. The supply of soft drinks decreases

Explanation:

Changes different from price and quantity supplied or quantity demanded will cause changes in the total supply or demand. In this case, an increase in the cost of the aluminum used by soft-drink companies will increase their cost of production. Because this affects companies which supply canned soft drinks, this increase in the cost of production will affect the total supply. If the cost of production increase, with the same resources, they will produce less but need to compensate this decrease in units by increasing the price. In the demand and supply graph, the supply will shift to the left and this will decrease the equilibrium quantity and increase the equilibrium price.

6 0
3 years ago
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