Answer:
Current price of bond is $1060.47
Explanation:
Coupon payment = 1000 x 8% = $80 yearly = 80/2 = $40 semiannually
Number of periods = n = 8 years x 2 periods per year = 16
Yield to maturity = 7% yearly = 7% / 2 = 3.5%
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$80 x [ ( 1 - ( 1 + 3.5% )^-16 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^16 ]
Price of the Bond = $80 x [ ( 1 - ( 1.035 )^-16 ) / 0.035 ] + [ $1,000 / ( 1.035 )^16 ]
Price of the Bond = $483.76 + $576.71
Price of the Bond = $1,060.47
Answer: Task Identity
Explanation:
Task identity is referred to as or known as an overall extent that a task is done from its start point to the finish point. The overall degree to which result is visible or predicted. Task identity is known to be a critical and an important element of the job satisfaction. Task identity is referred to as a vital element of a job characteristic alongside skill variety, task significance, feedback. and autonomy.
<span>The issue isn't black and white, a true answer is closer to the middle ground but to play devil's advocate I personally believe investors have a net positive effect on companies they keyword: invest in. Investments naturally leads to expansion and growth, that's always at least a main goal of anyone profitable company. It produces more jobs, but it can have the negative effect of curbing jobs in the name of cutting costs. A lasting problem is an overreliance in investment when companies don't have enough liquidity to continue running and is forced to sell assets valuable to the business in times of panics and reduced investment. Overall investors are in large part a reason for the success of modern corporations.</span>
Answer:
The answer is 12%
Explanation:
Initial investment:
$5,000 in equity + $5,000 in debt
=$10,000
Number of shares bought with the initial investment is:
Initial investment/Stock price
= $10,000/$50 = 200 shares.
The shares increase in value by 10%: $10,000 x 0.10 = $1,000.
Interest on debt = $5,000 x 0.08 = $400.
The rate of return will be:
($1,000 - $400) ÷ $5,000
0.12
Expressed as a percentage:
12%
