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Sophie [7]
3 years ago
7

you buy a 8%. 10 year maturity bond for 980. a year later, the bond price is 1200. assume annual coupon payments. what is the ne

w yield to maturity on the bond
Business
1 answer:
DedPeter [7]3 years ago
4 0

Answer:

5.16%

Explanation:

Missing word <em>"(Assume a face value of $1,000 and annual coupon payments."</em>

Current price of the bond = $980

FV = $1000

Coupon rate = 8%

Term = 10 maturity

After 1 year bond price = $1,200

Remaining life = 9 years (10-1)

New yield rate = [Coupon rate+(Maturity value-Current price) / Useful life] / [0.6*Current price + 0.4*Maturity value]

New yield rate = [1,000*8% + (1,000-1,200) / 9] / [0.6*1,200 + 0.4*1,000]

New yield rate = $57.78 / $1,120

New yield rate = 0.0515893

New yield rate = 5.16%

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NemiM [27]

Answer:

Elementary Education → Accounting → Pharmacy → Crop Production

Explanation:

According to the employment statistics, Elementary education employs the least, and Crop production employs the largest number.

3 0
3 years ago
Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch
denis-greek [22]

Answer:

1. Inside the dorm room, the movies are <em>Non-Rival</em> which means that one person can watch the movie and it will not diminish the ability of others to watch as well.

Also as they are all in the same dorm, the showing of the movie is <em>Non-Excludable</em> as well because no one can stop the other from watching.

Public good is both Non-Rival and Non-Excludable so the showing of a movie IS a public good.

2.

Musashi   Sean    Bob   Eric   Total Willingness to pay

10   9   8   3   30

8   7   6   2   23

6   5   4   1   16

4   3   2   0   9

2   1   0   0   3

The optimal number of movies that can be rented is dependent on their total willingness to pay. If their Total willingness to pay for the movie is above $8 which is the cost of a movie, then they will get it. From the table, the fifth movie is below the price of $8 so they <u>should rent 4 movie</u>s.

3. If they rent 4 movies and there are 4 of them then the cost per person is;

= (8 *4)/4 people

= 24/4

= $8

This means that each roommate will pay <u>$8</u>.

3 0
3 years ago
Which of the following statements most accurately describes the state of banking in the U.S.?
trapecia [35]

Answer:

B. A large number of very large and small banks

I think

8 0
3 years ago
If your friend Raheem asks you, “What type of account should I use to save for retirement,” what would you tell him?
SSSSS [86.1K]

Answer:

Roth IRA account

Explanation:

The best type of account that you should save money in for Retirement is a Roth IRA account. This will allow you to put and save a maximum of $5,500 USD per year which will compound annually with interest and can be redeemed when you retire. Once you redeem your money at the age of 65 1/2 it will be completely tax-free. Meaning you have no liabilities with that money whatsoever and you can simply enjoy your retirement with that money.

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3 years ago
Human Resources Manager Isaac Bauer is researching case studies as he prepares an employee wellness workshop. An effective metho
valina [46]

Answer: A. True

Explanation: If he were inexperienced in this field or he was doing it as his hobby (casual objectives) with no goal to reproduce or add to the data already published, or were there people involved in his research, then this would have been categorized as informal research. However this setting is strictly formal, and authenticity of data is mandatory. Print and online journal articles contain the case studies already researched thoroughly.

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