Its annual compound yield to maturity (YTM) is $881.00
An annual compound hobby is calculated by multiplying the initial main amount by one plus the once-a-year hobby fee raised to the wide variety of compound durations minus one. A hobby may be compounded on any given frequency agenda, from continuous to every day to annually.
"12% hobby" approach that the hobby fee is 12% in keeping with year, compounded annually. "12% interest annual compound monthly" manner that the hobby charge is 12% in line with the year (no longer 12% consistent with month), compounded month-to-month. Consequently, the hobby price is 1% (12% / 12) in line with the month.
A compound hobby is the addition of a hobby to the principal sum of a mortgage or deposit, or in other phrases, interest on essential plus interest.
First, find YTM
N = 20
I = YTM
PV = -860
PMT = 50
FV = 1000
YTM = 6.245%
The price after 5 years is nothing but the future value of the bond after 5 years
N = 5
I = YTM = 6.245
PV = -860
PMT = 50
FV = $881
So the answer is $881.00
Learn more about annual compound here brainly.com/question/24274034
#SPJ4
Answer:
<h2>i hope D is right answer </h2>
Explanation:
<h2> .........7⃣7⃣7⃣7⃣7⃣7⃣</h2>
Answer: Check explanation
Explanation:
a. Since Amy bought the equipment for $3700 and sold the equipment for $690, the amount that Amy can deduct for the loss of the equipment will be:
= $3700 - $690
= $3010
b. Here, the amount that Army can deduct for the loss of equipment will be the lesser of the amount Amy bought the equipment which is $3700 or the cost of the repair which is $1370.
Therefore, $1370 will be deducted.
c. After the accident, Army could not replace the equipment so she had the equipment repaired for $4,300. What amount can Army deduct for the loss of the equipment?
Here, the amount that Army can deduct for the loss of equipment will be the lesser of the amount Amy bought the equipment which is $3700 or the cost of the repair which is $4300.
Therefore, $4300 will be deducted.
Answer:
If a company must expand capacity to accept a special order, it is likely that there will be an increase in fixed costs.
Explanation:
The fixed costs are the part of the total costs of production that remain constant during a given reference quantity in a certain period. These include, for example, depreciation of fixed assets or rental or interest expenses. Since fixed costs are incurred regardless of the application quantity (short-term), they cannot be apportioned to the unit costs according to the cause.
In the present case, given that the company must expand its capacity to take the special order, it means that all of its production factors are totally devoted to production, so that in order to produce a greater quantity of goods, the productive factors must be increased, which are part of the fixed production costs that the company has. Therefore, as the costs of production are altered, there will be an increase in fixed costs.
True. I hope this is correct (:
