1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
polet [3.4K]
3 years ago
10

This morning, you purchased a seventeen-year, 6.45% annual coupon bond with face value of $1,000 at a price of $1,030.04. Just a

fter purchasing the bond, the yield to maturity of the bond falls to 5.50 percent and stays at that level throughout your investment period. If you sell your bond after holding it for seven years, what will be your realized rate of return
Business
1 answer:
iogann1982 [59]3 years ago
8 0

Answer:

6.73%

Explanation:

the price of the bond in seven years is:

PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43

PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20

market price = $1,071.63

using an excel spreadsheet of financial calculator, the annual rate of return:

year 0 = -1030.04

year 1 = 64.5

year 2 = 64.5

year 3 = 64.5

year 4 = 64.5

year 5 = 64.5

year 6 = 64.5

year 7 = 1136.13

IRR = 6.73%

You might be interested in
What is a service?
Phantasy [73]

Answer:

C

Explanation:

I believe that a service is an action that is preformed out of the kindess of one's heart, not looking for someone in return. An act of pure an unfiltered kindess.

5 0
3 years ago
Need help ASAP! Tyyyyyy
IRISSAK [1]

This is a question on Entrepreneurship. The two sectors where Mama Meals plays are:

  • Logistics and ;
  • Foods/Refreshment Sectors.

<h3>What are the two reasons why Naisiadet might be described as an entrepreneur?</h3>

  • The first is she knows how to identify Opportunities;
  • The second is, she knows how to convert opportunities in to money making operations. See The first sentence of the first paragraph; and the first sentence of the third paragraph.

<h3>Explain Two benefits to Naisiadet of Researching the market for the proposed business</h3>

  • The first benefits is that it helped her to discover the size of her market - 5% of the people in Nairobi.
  • The second is that they were middle income earners.
<h3>
Was it a mistake for her not to have had a business plan?</h3>

Yes. Business plans are essential for laying out the long-term goals of a business.

Learn more about Entrepreneurship:
brainly.com/question/18294953
#SPJ1

3 0
2 years ago
A best-seller novel sells for $28 in hardback edition and $12 in a paperback edition. a book store's sales of both editions tota
Mekhanik [1.2K]
The number of each type of book is what is unknown, so we can represent those quantities with variables. Let x = the number of hardbacks and y = the number of paperbacks. Then we know that: x + y = 65 (the total number of books sold) We also know the total cost of both editions, which is $1356. It can be written algebraically as: 28x + 12y = 1356 We now have a system of two equations, which can be solved by substitution. It would be easier to solve the first equation for either x or y and substitute that into the second equation. 
6 0
3 years ago
Problem 5-30 Graphing; Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8][The following information ap
WARRIOR [948]

Answer:

Break Even Point

In Units = 2,000 units

In value = $80,000

Explanation:

Break even Point = \frac{Fixed\ Cost}{Contribution}

When we use contribution per unit, we get the break even point in units sales.

When we use the contribution margin as a percentage of sales we get break even sales in value.

Contribution per unit = $20

Contribution margin in percentage = $20/$40 = 50%

Therefore, Break even Point in units = \frac{40,000}{20} = 2,000

Break even units = 2,000

Break Even Point in value = \frac{40,000}{0.50} = 80,000

Sales to be made in value at break even = $80,000

8 0
3 years ago
Bill is considering investing $450 at the end of every month in a fixed income instrument. He will receive $27,000 at the end of
Nikitich [7]

Answer:

11.61%

Explanation:

First, find the annual percentage return (APR) of this annuity. Using a financial calculator, input the following;

Recurring payment; PMT = -450

Future value ; FV = 27,000

Duration of investment ; N = 4*12 = 48 months

One -time present value; PV = 0

then compute interest rate; CPT I /Y= 0.92% (this is monthly rate)

APR = 0.92*12 = 11.035%

Effective Annual Rate (EAR) formula is as follows;

EAR = (1+\frac{APR}{m} ) ^m  -1

EAR = 1+\frac{0.11035}{12} )^12 -1

EAR = 1.1161 -1

EAR = 0.1161 or 11.61%

8 0
3 years ago
Other questions:
  • On July 20, 2017, Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is § 1244 small
    15·1 answer
  • Bank capital has both benefits and costs for the bank owners. Higher bank capital ________ the likelihood of bankruptcy, but hig
    11·1 answer
  • How can u keep a converstaion going with somebody
    6·2 answers
  • One of your clients is a sophisticated 40 year old investor and has recently changed jobs. The client is considering rolling ove
    14·1 answer
  • Identify financial statement by type of information) Butler Tech, Inc., is expanding into India. The company must decide where t
    5·1 answer
  • Which marketing metric measures the percentage of the target market that has been exposed to a promitonal message at least once
    8·1 answer
  • The equilibrium wage for low-skilled workers is a government-imposed minimum wage, the ____ will be the resulting surplus of low
    15·1 answer
  • The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day
    7·1 answer
  • Service technicians are expected to monitor which site to take service courses for new products?
    6·1 answer
  • A ________ is considered a planned activity to achieve a specific business objective.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!