A bond is issued with a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rate of return will be earned by an investor who purchases the bond for $627. 73 and holds it for 1 year if the bond’s yield to maturity at the end of the year is 8%?.
Answers
-11% is the rate of return will be earned by an investor who purchases the bond for $627. 73 and holds it for 1 year if the bond’s yield to maturity at the end of the year is 8%.
The key to answer this question is to remember that valuation of a bond depends basically of calculating the rate of return present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginning (principal), so applying math we have the bond value given by:
so in this particular case that one year later there are 29 years to maturity so we have:
\(price= \frac{Principle*coupon}{(1+i)^{1} } +\frac{Principle*coupon}{(1+i)^{2} }+.......+\frac{Principle*coupon}{(1+i)^{n} }\)
\(price= \frac{1000*0.04}{1+0.08} + \frac{1000*0.04}{(1+0.08)^{2} } +..........................\frac{1000*0.04)}{(1+0.08)^{30} }\)
\(price=553.6638\)
so as we have a higher rate of return the investment has the next return:
\(rate=\frac{553.68}{627.73} -1\)
\(rate= -11.8\)
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Related Questions
What is an example of a general safety hazard?
poorly maintained equipment
contaminated water
blizzard
employee retaliation
Answers
Answer:
poorly maintained equipment
Answer:
contaminated water
Explanation:
if the water doesnt get boiled it will make you sick, contaminated water can make you sick easily so its a safety hazard
What is the name for the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to target audiences?
Answers
Answer:
Integrated Marketing Communication
Explanation:
As the name implies, the concept of integrated marketing communication is aimed at leveraging the power that comes with the synergy between different marketing and communication tools and services such as consistent and repetitive advert placement, sales and promotional offers, coordinated and friendly marketing campaigns, and son on, all these carefully and strategically tailored towards the gradual and steady capture of a specific target audience over a certain period of time. These integrated marketing strategy or procedure is aimed towards such audience so that it would cover all aspects of the consumers wants in other to ultimately impact their deciak making and adoption of the product or services.
if a food server worker follows directions, how long does it take to wash his/her hands
Answers
Answer:
A food server worker should wash his/her hands for 20 sec or longer.
Hopefully this helped :)
The government claimed that, to illegally control the market, Microsoft used
a. predatory pricing and mergers.
b. predatory pricing and buying out competitors.
c. predatory pricing and forming a cartel.
d. predatory pricing and requiring customers to buy other products.
Answers
Answer:
B. Predatory pricing and buying out competitors
which word best describes the writing process in business writing ?
Answers
Answer: Brainstorm Pre-write. Write rough draft. Peer-review. Revise ideas. Edit Publish Establish constructive purposes for student writing. Find real audiences, beyond the teacher, for students' writing
To pursue a diversification strategy, managers must have the ability to:
a. introduce innovative and disruptive products to the market.
b. outsell all of its competition.
c. recognize profitable opportunities to enter new industries.
d. discover technological advancements to create new products.
Answers
Managers must possess the following skills in order to undertake a diversification strategy: the capacity to identify lucrative possibilities to enter new industries. Option c is Correct.
A joint venture is a type of diversification strategy frequently employed when two or more businesses decide to pool their resources to launch a new company in a sector that is experiencing growth. Companies that participate in relevant diversification are more likely to increase shareholder value because it leverages strategic fit.
When a company enters a new industry that bears significant parallels to one or more of its current industries, related diversification takes place. Risk management in investment is accomplished through diversification. Investors diversify their holdings over a variety of different companies, sectors, and asset classes rather than concentrating their capital in a single company, industry, sector, or asset class. Option c is Correct.
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Since compromise does not resolve underlying issues, it is not recommended for managing any conflicts that occur among members of a group.
T/F
Answers
False. Compromise can be a valuable approach for managing conflicts that occur among members of a group. While it may not always resolve underlying issues completely, it can be an effective strategy for finding a middle ground and reaching an acceptable solution that satisfies the involved parties to some extent.
In many cases, conflicts arise due to differing perspectives, interests, or needs of group members. By engaging in a process of compromise, individuals can make concessions and find common ground that addresses the immediate concerns and allows for progress to be made. Compromise involves each party giving up some of their original demands or positions to reach a mutually acceptable agreement. It requires active listening, open communication, and a willingness to find a solution that accommodates multiple viewpoints. While compromise may not completely address the root causes of a conflict, it can help manage tensions, restore working relationships, and create a foundation for further collaboration and problem-solving. It can provide a temporary resolution that allows the group to move forward and work together effectively.
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when is subsidy necessary in comodity supply
Answers
Answer:
A subsidy is a benefit given to an individual, business, or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.
Explanation:
A lawyer cannot represent both the plaintiff and the defendant because of
they may have:
a Conflict of Interest Issue
an Ethical Issue
an Ethical Dilemma
an Integrity Issue
Answers
Answer:
a Conflict of Interest Issue
Explanation:
In many countries, including the USA, the legal system is built on an adversarial process. Each of the conflicting parties is allowed the chance to argue their case as persuasively as possible. It means each side independent representation to defend their rights.
In the adversarial process, a lawyer must be loyal to their client to represent them effectively. It is practically impossible to be loyal to two clients on opposite sides of a court proceeding. Conflicts of interest will arise as the same lawyer cannot argue for and against the issue in the same court.
Adrienne is part of the senior management team at a company in which ____________ since her appointment __________ both morale and client-satisfaction have dramatically improved. Among her driving principles are the idea that people work better when they are both motivated and empowered to reach their goals, that each team member must contribute fully, and that when she has to make a key decision, everyone knows why she is making it. She is a useful example of how __________ works.
Answers
Answer:
improvements were clearly evident; as; democratic leadership style
Explanation:
What this means is that;
"Adrienne is part of the senior management team at a company in which improvements were clearly evident since her appointment, as both morale and client-satisfaction have dramatically improved. Among her driving principles is the idea that people work better when they are both motivated and empowered to reach their goals, that each team member must contribute fully, and that when she has to make a key decision, everyone knows why she is making it. She is a useful example of how democratic leadership style works."
Note, a democratic leadership style is one in which the manager or leader allows participation from his subordinates; in other words, it is a participative form of leadership.
what is the payback period for the following proposed capital budgeting project: year cash flows 0 -1,000,000 1 200,000 2 400,000 3 300,000 4 500,000
Answers
The payback period for this proposed capital budgeting project is 3.2 years. This means that it takes 3.2 years for the project to recover the initial investment of 1,000,000.
The payback period is a capital budgeting metric used to evaluate the time it takes for an investment to generate an amount equal to the initial cost, and it helps in assessing the risk associated with a project. In your case, we have the following cash flows:
Year 0: -1,000,000
Year 1: 200,000
Year 2: 400,000
Year 3: 300,000
Year 4: 500,000
To calculate the payback period, we need to track the cumulative cash flows and determine when the project breaks even:
Year 1: -1,000,000 + 200,000 = -800,000
Year 2: -800,000 + 400,000 = -400,000
Year 3: -400,000 + 300,000 = -100,000
Year 4: -100,000 + 500,000 = 400,000
The payback period occurs between Year 3 and Year 4. To determine the exact payback period, we can use the following formula:
Payback Period = 3 + (100,000 / 500,000) = 3 + 0.2 = 3.2 years
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(figure 8.5) if this economy's inflation goal is a price level of p2 but the equilibrium price level is p3, an appropriate monetary policy lever would be to
Answers
In Figure 8.5, the proper monetary policy lever would be to Decrease AD by raising interest rates if this economy's inflation target is a price level of P2 while the equilibrium price level is P3.
What monetary strategy should be used to reduce total demand?To stop unusually high inflation rates or normalize the consequences of expansionary policy, contractionary monetary policy is implemented. Inhibiting corporate growth and consumer spending while negatively affecting exporters can result in a decrease in aggregate demand.
What controls the monetary policy?The reserve ratio, discount rate, and open market operations are the Federal Reserve's three primary control mechanisms for the amount of money in circulation.
The AD curve: What impact does monetary policy have?Monetary policy can be used by decision-makers to affect aggregate demand. The aggregate-demand curve will eventually move to the right in response to an increase in the money supply. Reduced money supply will eventually cause the aggregate-demand curve to move to the left.
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The complete question is:
(figure 8.5) if this economy's inflation goal is a price level of p2 but the equilibrium price level is p3, an appropriate monetary policy lever would be to
the incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:
Answers
If Martinez incremental costs from 5,000 to 5,001 units, it will incur additional expenditures of $6
What is the incremental costs?If Martinez incremental costs from 5,000 to 5,001 units, it will incur additional expenditures of $6.
The incremental cost will be calculated in the next step:
Production incremental cost = Unit Variable Cost (Units increased) $6
divided by 1 is the incremental cost of production.
The overall expense incurred as a result of producing one extra unit of a product is known as the incremental cost. The cost of an incremental unit of production is estimated by examining the additional costs incurred during the production process, such as raw materials.
If Martinez incremental costs from 5,000 to 5,001 units, it will incur additional expenditures of $6To learn more about incremental costs refer to:
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Who do you think mergers help the most, consumers or the businesses that merge?
Answers
Mergers may improve product quality, which benefits consumers. For example, the merger of two start-up software companies could result in better quality products and faster time-to-market as the merged entity takes advantage of the research capabilities and facilities of their legacy companies.
When a department in an organization has a high level of absenteeism, we are dealing with:____.
Answers
When a department in an organization has a high level of absenteeism, we are dealing with a problem's symptom rather than the issue itself.
Absenteeism: What Is It?The habitual absence of an employee from their place of employment is known as absenteeism. When a person often misses work due to genuine reasons like planned vacations, illness from time to time, or personal emergencies, this is referred to as habitual non-presence.What contributes to absenteeism?The term "absenteeism" refers to a worker's routine absence from work, which is typically intentional and unjustified. The main causes of absence include family obligations, illness, job searching, and workplace harassment.Learn more about absenteeism here:
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Keynes believed all of the following are true, except
wages and prices are sticky.
the economy is inherently stable.
the economy can experience a long period of recession.
the government must be involved in the economy.
the economy is never at full employment of resources.
Answers
The notion that "the economy is intrinsically stable" is false, in Keynes' opinion.
What economic principles did Keynes hold?According to Keynesians, since prices are somewhat stiff, changes in all types of spending, including government, investment, and consumer spending, have an impact on output. For instance, output will rise if government spending rises while all other spending elements stay the same.
What about Keynes' views on the recession?Implementing an expansionary fiscal policy, in the opinion of Keynesians, is the most effective approach to exit a recession. Examples include lowering taxes to promote investment and spending or outright raising government expenditure, both of which would result in a rightward shift in the aggregate demand curve.
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This phase is highly crucial as the quality of the end product is determined by the effectiveness of the testing carried out. A. Integration and System Testing B. Design Phase c. Operation and mainten
Answers
The correct option is A. Integration and System Testing.
Integration and System Testing is a phase in the software development life cycle where different software components are combined and tested as a whole system. It involves testing the interactions and interfaces between various modules or subsystems to ensure they function correctly and integrate seamlessly.
During this phase, the focus is on verifying the system's behavior, performance, and compliance with the specified requirements. It helps identify any defects or issues that may arise due to the integration of different components.
While the Design Phase and Operation and Maintenance are also important stages in the software development life cycle, they are not specifically related to the testing of the system's quality. The Design Phase deals with creating the system architecture and detailed design, while Operation and Maintenance involve activities related to deploying, operating, and updating the system in a production environment.
In summary, Integration and System Testing play a crucial role in ensuring the quality and functionality of the software system being developed.
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what types of actions can be taken by the nlrb in response to an unfair labor practice? check all that apply.
Answers
Issue a notice to stop and comply. Order the workers' reinstatement.
In the workplace, what does it mean to be reinstated?An employee with a Mandatory Reinstatement right can return to their previous position with all of their rights and status as before they left.
When an employee is reinstated, what happens?According to case law, the simplest definition of reinstatement is "to put an employee in the same position he or she was in before being dismissed." This indicates that the worker will be reinstated with the same terms and conditions as if the dismissal had never occurred.
Can a worker fired be reinstated?The employer should immediately reinstate the employee if the initial decision to dismiss the employee as a result of a disciplinary procedure is overturned as a result of an appeal. In place of the initial decision to fire the employee, the employer may choose to impose a lesser punishment.
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Full Question = What types of actions can be taken by the NLRB in response to an unfair labor practice? Check all that apply.
Multiple select question.
Organize a labor strike or labor reduction.
Issue a cease-and-desist order.
Demand a higher wage.
Order a reinstatement of workers.
I got a 50 the first time taking this, don’t know what I got wrong.
Answers
Answer:
Has no change
Explanation:
When sales taxes are imposed, the change is barely noticeable to the buyers and they adopt to it
Question 6 of 10
Which of the following speeds will produce lowest miles per gallon?
A. 75 mph
B. 45 mph
C. 85 mph
D. 55 mph
Answers
Segment margin is equal to sales revenue less all costs attributable to a segment that ______. Multiple choice question. is the same thing as contribution margin is calculated as part of a special-order decision includes both direct and common fixed costs includes both variable and direct fixed costs
Answers
Answer:
includes both variable and direct fixed costs
Explanation:
PLEASE HELP
pt 1. You work for an ad agency that has a Super Bowl sponsor as a client. What approach would you recommend for your agency as it develops a campaign—universal, customized for each geographical region, or something else, and why?
pt 2. What types of companies could benefit from placing ads on the NFL website, and how can they use the internet effectively to promote their products?
Answers
A universal campaign is a type that would work best for a Super Bowl. This is because the people that attend the Super Bowl are best defined as a diverse marketing sector.
Companies in the sports, health and fitness industries may profit from placing advertisements on the NFL website.
What exactly can be defined as a universal campaign?Universal Ads offers you one-of-a-kind, cross-platform insights into the data you need to succeed. Bottom-of-the-funnel events are shared across platforms. The conversion rates of ad networks are compared. Long-term trends are classified according to the platform, ad set name, channel, and other characteristics.
Previous research has found that businesses' sales do not increase when their Super Bowl commercials run. New university research, on the other hand, reveals that Super Bowl advertising causes brief increases in web searches and word-of-mouth impressions.
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the similarities of African countries
Answers
The similarities between African countries are:
Background on Agriculture in Africa
Despite the great potential for agricultural production in Africa,UNDP states that about 73% of the poor people living in rural areas subsist on less than a dollar a day.In addition, the continent has about 200 million of the world’s hungry people (Millennium Development Goals (MDGs) Technical Support Centre.Furthermore, available statistics suggest that about one-third of the continent’s population is malnourished.Africa is also the only continent where food production has been falling over the years.One of the maximum famous suggestions for the origins of the time period 'Africa' is that it's far derived from the Roman call for a tribe living in the northern reaches of Tunisia, believed to possibly be the Berber human beings. The Romans variously named these human beings 'Afri', 'Afer', and 'If'.
It is brimming full of big things. As the second biggest continent in the world, Africa is jam-full of a number of the world's biggest things: the biggest desolate tract within the globe, the Sahara wilderness (explore it on our Morocco itineraries). The longest river in the world, the Nile River, runs for 6,853km (4,258mi).
Luxembourg is a small, landlocked U. S . Positioned in western Europe and bordered by means of Belgium, France, and Germany. With a population of 642,371, Luxembourg is the simplest Grand Duchy in the world. Its GDP in keeping with a capita of $a hundred and forty,694 makes it the sector's richest.
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twenty workers are to be assigned to 20 different jobs, one to each job. how many different assignments are possible?
Answers
20 jobs are to be divided among 20 workers, one for each job. There are many distinct possible assignments. There are 2 432 902 008 176 640 000 distinct potential assignments when 20 19 18 3 2 1 Equals 20.
What do assignments mean in the classroom?A task or piece of (academic) labor is known as an assignment. It gives pupils the chance to learn, practice, and show that they have mastered the learning objectives. It gives the teacher the proof that the students have met their objectives.
What exactly is a sample assignment?A homework assignment was provided to the students. The contender is to be interviewed by the reporter. On assignment, the reporter is present.
What kinds of assignments are there?Financial Reports.
Assignments for case studies.
Presentations in class.
Essays.
lab summaries.
Portfolios.
Study papers.
Simulations.
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Which of the following is not an example of a corporation's "growth from within?"
A. Introducing new but related products
B. Acquiring another corporation
C. Expanding present operations
D. Expanding the sale of present products to new geographic markets
Answers
Answer:
The answer seems to be B. this answer does not count in the overall general business spectrum as "growth from within". Good luck!
Acquiring another corporation is not an example of a corporation's "growth from within.
What is a corporation?A company is a separate legal entity from its shareholders. Many of the same legal rights and obligations apply to corporations as to people. They are able to sign contracts, make loans and take loans, sue and be sued, hire staff, possess assets, and pay taxes.
Corporations make up the majority of significant companies, like Toyota. Some businesses operate both under their own names and under different trade names, such as Alphabet Inc.
While a corporation's exact legal definition varies from country to jurisdiction, its most crucial feature is always limited liability.
This means that while shareholders may benefit from dividends and stock appreciation, they are not personally responsible for the debts of the business.
A corporation is formed when a group of shareholders incorporates the business with the intention of pursuing a shared objective and sharing ownership of the business, as evidenced by their ownership of stock shares.
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mackenzie conducted mac561 as an s corporation and she received a salary of $20,000. all business income allocated to her is also distributed to her.
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The statement is true "When Mackenzie conducted Mac561 as an S Corporation, and she received a salary of $20,000, all business income allocated to her is also distributed to her" is true because it has the liability and tax advantage.
An S Corporation is a unique business structure that offers the liability protection of a corporation and the tax advantages of a partnership. The shareholders of an S corporation report the company's income on their personal tax returns based on their shares. Also, only the salary earned by S Corporation employees, including shareholders who work for the company, is subject to Social Security and Medicare taxes. S corporation income is not subject to self-employment tax, which may result in lower Social Security and Medicare tax payments and overall tax savings for S corporation shareholders.
In conclusion, when Mackenzie conducted Mac561 as an S Corporation and received a salary of $20,000, all business income allocated to her is also distributed to her.
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Complete question is:
"mackenzie conducted mac561 as an s corporation and she received a salary of $20,000. all business income allocated to her is also distributed to her. State tru or false."
how do i get an egg out of my fridge????? HELP NEED TO KNOW ASAP
Answers
Answer:
open fridge!!!
Explanation:
STEP 1: open fridge
STEP 2: find the egg then grab with hand!!!!!!!!
(Its really hard!!)
Which one of the following is the risk that market rates may increase causing the price of a bond to decline? A. yield risk B. interest rate risk C. reinvestment risk D. inflation risk
Answers
The answer is B. Interest rate risk. When market rates increase, the price of a bond decreases, and this risk is known as interest rate risk. This is because investors are willing to pay less for a bond with a lower interest rate when compared to a bond with a higher interest rate.
The risk that market rates may increase causing the price of a bond to decline is known as interest rate risk.
Interest rate risk is the possibility that an investor will lose money due to a change in interest rates. When market interest rates increase, the price of a bond falls because investors demand a higher yield to compensate for the increase in interest rates. This increase in yield means that the bond's price must decline to make up for the difference. Conversely, when market interest rates decline, the price of a bond rises because investors are willing to accept a lower yield. It is essential to note that interest rate risk affects all bonds, regardless of their type or credit rating. Therefore, investors must carefully consider the potential interest rate risk when investing in bonds.
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you wrote a covered call (i.e., sell a call option on the stock already owned) with a strike price of $45 and an option premium of $1.50. assume the stock price drops to $40 a share at the option expiration. as a result, you will: a. lose the option premium but get to keep the stock. b. keep the option premium but lose your shares of stock. c. lose both your stock and the option premium. d. lose an amount equal to the option premium. e. keep both your stock and the option premium.
Answers
Assume the stock price drops to $40 a share at the option expiration. as a result, you will keep both your stock and the option premium. Option "e" is the correct answer
An investor can sell a call option against a stock they already own to earn income from their shares. This is called writing or selling a covered call. The investor would then be obligated to sell the shares at the predetermined price if the option is exercised by the buyer before the option expiration date.
A covered call strategy is typically used to generate income, but it can also be used to protect against a stock's downside risk. This strategy will be discussed below.
In this situation, the stock price has dropped to $40 a share by the option expiration date. The stock is worth $40 a share, which is less than the $45 strike price. As a result, the option will expire worthless. The seller of the option will keep the option premium of $1.50.
They will be able to keep their stock, which is currently worth $40 a share. This is why option "e" is the correct answer to this question. The investor who sold the call option gets to keep both their stock and the option premium.
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A discount supermarket, such as Aldi, is most likely to place an emphasis upon which of the following elements of the marketing mix?
Answers
Answer: Price
Explanation:
Marketing mix simply refers to the set of tactics or actions that a company will use to promote its product or brand in the market. The marketing mix is made up of the Price, Product, Promotion and Place.
A discount supermarket, such as Aldi, is most likely to place an emphasis upon the price. It is a discount factor, therefore the price will be its point of emphasis.