15,
Last year Janet purchased a $1,000 face value corporate bond
with a 10% annual coupon rate and a 10-year maturity. At the time
of the purchase, it had an expected yield to maturity of 8.84%. If
Ja
Answers
The face value of bond purchased by Janet is $1000 with a coupon rate of 9% and maturity period of 10 years. The rate of return she would have earned for the past year is 7.97%.
Let the purchase price be P
The Face value of the bond is $1,000Annual coupon rate is 9%Annual Yield to Maturity is 10.35%The number of years to maturity is 10 yearsMarket value or Selling Price of the Bond = $933.93 Coupon rate is 9% annually
Hence the semiannual coupon is = 4.5% = 0.045.The number of semiannual coupon payments remaining is 20. Thus, a total of 20 semiannual coupons will be paid over the next ten years.
Using the formula to calculate the price of a bond, we get
P = {[0.045 * 1000 / (1 + 0.05175)] + [0.045 * 1000 / (1 + 0.05175)2] + ... + [0.045 * 1000 / (1 + 0.05175)20]} + [1000 / (1 + 0.05175)20]
where the 20 is the number of semiannual periods from today to maturity.
Substitute the values in the above formula and calculate the purchase price P, we get P = $883.53
Now, the rate of return on the bond is the total income (interest and capital gain) received over the period divided by the initial investment. The total income received over the year is the interest plus the capital gain or loss. We know that the capital gain or loss is the difference between the selling price and the purchase price.
So, Capital Gain or Loss = Selling Price - Purchase Price= $933.93 - $883.53 = $50.4
The income received from the semiannual coupons is $45 per period, and since 20 semiannual periods will elapse during the life of the bond, the total income from the coupons over the life of the bond is:Total Income from Coupons = 20 * $45 = $900.
Total income received over the year = (1/2 * $45) + (1/2 * $45) + $50.4= $70.4
Rate of Return = Total Income / Initial Investment= $70.4 / $883.53= 0.0797 or 7.97%
Therefore, Janet earned a 7.97% rate of return over the past year.
The complete question must be:
Last year Janet purchased a $1,000 face value corporate bond with a 9% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.35%. If Janet sold the bond today for $933.93, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
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Related Questions
In terms of microeconomic analysis, what is the function of utils?.
Answers
Answer: a measurement of utility
Explanation:
Project Data
Mowgli Corporation adjusted trial balance for fiscal year ending December 31, 2019.
Dr.
Cr.
Cash
$21,000
Accounts Receivable
$102,000
Inventory (beginning)
$20,000
Estimated Returns Inventory
$5,000
Land
$9,000
Office equipment
$22,000
Accumulated Depreciation-equip.
$20,000
Building
$233,000
Accumulated Depreciation-Bldg.
$94,000
Patent
$16,000
Accounts Payable
$73,000
Customer Refunds Payable
$2,000
Interest Payable
$14,000
Unearned Revenue
$22,000
Notes Payable
$100,000
Capital
$80,000
Drawings
$29,000
Sales
$206,600
Purchases
$106,000
Purchases Returns and Allowances
$1,000
Purchase Discounts
$500
Freight-in
$300
Insurance Expense
$6,000
Interest Expense
$8,000
Repair Expense
$5,000
Salaries Expense
$17,600
Advertising Expense
$1,200
Depreciation Expense
$11,000
Utilities Expense
$1,000
$613,100
$613,100
Other Information:
Inventory on hand at December 31, 2019 is $55,000 (Hint: this is ending inventory).
Estimated Returns Inventory increased $2,000 (Hint: Include in COGS and Closing Entry).
Administrative expenses include: Insurance, Repair, Utilities, and Depreciation.
Selling expenses include: Advertising and Salaries.
$50,000 of the Notes Payable is payable next year (Hint: classified as current).
Answers
Answer:
21,000
Explanation:
Can someone please help me!
Answers
Answer:
The awnser is the Nature of Business
Answer:
nature of business that's
What personnel records would you suggest for a small retailer with three employees?
Answers
Explanation:
For a small retailer with three employees, the ideal would be to keep personnel records well organized, because regardless of the size of the company, the records function as a perspective of the human resources department and a protection for the company, therefore it is essential that the company have registration forms, selection data, evaluation reports, disciplinary forms, job description, social security number, etc.
If a couple consistently buys health insurance for 20 years but never suffer a costly illness, were their premium payments wasted? No, if the safety of being insured was worth less to them than the monetary cost of the premiums No, if the safety of being insured was worth more to them than the monetary cost of the premiums Yes, because having insurance is never worth more than the monetary cost of the premiums Yes, if the safety of being insured was worth more to her than the monetary cost of the premiums
Answers
If a couple consistently buys health insurance for 20 years but never suffers a costly illness, were their premium payments wasted in Option A. No, if the safety of being insured was worth less to them than the monetary cost of the premiums.
Insurance is a risk management tool that provides financial protection against unexpected and costly events. The purpose of insurance is to mitigate the financial burden that may arise from such events. In the case of health insurance, it covers medical expenses and provides access to healthcare services.
When a couple consistently buys health insurance for 20 years but does not experience a costly illness, it may seem as though their premium payments were wasted since they did not directly benefit from the coverage. However, this perspective overlooks the underlying purpose and value of insurance.
Insurance provides peace of mind and protection against the uncertainty of future events. The couple's premium payments can be seen as an investment in their financial security and risk mitigation. By paying premiums over the years, they have transferred the risk of potentially costly illnesses to the insurance company.
Ultimately, the decision to purchase insurance is subjective and depends on individual circumstances, risk tolerance, and personal preferences. If the couple valued the safety and security of being insured more than the monetary cost of the premiums, then their premium payments were not wasted. It is a personal judgment based on the individual's perception of the value of insurance in their specific situation. Therefore, the correct option is A.
The question was incomplete, Find the full content below:
If a couple consistently buys health insurance for 20 years but never suffers a costly illness, were their premium payments wasted?
A. No, if the safety of being insured was worth less to them than the monetary cost of the premiums
B. No, if the safety of being insured was worth more to them than the monetary cost of the premiums
C. Yes, because having insurance is never worth more than the monetary cost of the premiums
D. Yes, if the safety of being insured was worth more to her than the monetary cost of the premiums
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Commingling is mixing the money of the agent and the principal together.
A. True
B. False
Answers
True.
Commingling is the unlawful use of a client's funds by a licensee, often mixing their own funds with the client's.
Drag the tiles to the boxes to form correct pairs.
Match the different. brainstorming techniques to their applications
Answers
Note that the Brainstorming Techniques matched to one another are given as follows:
Clustering - connecting ideas for a topic using different shapes and color-coding to identify how the ideas are relatedThree perspectives - describing the topic, tracing its history, and examining its connections with related topicsFreewriting - writing down first thoughts on a topic in a timed session. without pausing to check for relevance or grammarWhat are brainstorming techniques?The most essential thing to remember with any approach of brainstorming is to prioritize quantity above quality. Accepting all ideas, no matter how ridiculous or unimportant they may appear, aids brainstorming.
The aim is to establish a large enough pool of ideas from which to draw or combine ideas for the best solution or approach.
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25 points, Why are certain brands global? 3-4 sentences, please.
Answers
Answer: Certain Brands can be global because of their profits, Let's take cars for a example, Cars can be made and distributed based on the company if they can pay for all the shipping and everything, but it really depends on the company and what they are selling.
Explanation:
What is an optical cue?
Answers
answer well they provide depth information when viewing a scene with both eyes.
i don't know how else to explain it
2. Three years ago, Shawheen deposited $5,000 in a savings account. Today, the account is worth
$5,306.04 even though he never deposited any more money. Why does the account have more money
today than it did three years ago? In your response, also explain why the initial deposit may have had
more purchasing power three years ago. (8 points)
Answers
The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.
The initial deposit might have a higher purchasing power because of inflation.
When money is deposited in a savings account, the amount of money earns interest.
The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)
Interest earned = $$5,306.04 - $5,000 = $306.04
Interest rate = $306.04 / (3 x $5000) = 2.04%
Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.
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how old do you have to be to work at lululemon
Answers
Answer:
The minium age requirement to work there is 18
Lena Horn bought a Toyota Tundra on January 1 for $23,000 with an estimated life of 4 years. The residual value of the truck is $4,600. Assume a straight-line method of depreciation.
a. What will be the book value of the truck at the end of year 4?
b. If the Tundra was bought the first year on April 12, how much depreciation would be taken the first year?
Answers
The book value of the truck at the end of year 4 will be $4,600.The book value of an asset can be calculated by subtracting the accumulated depreciation from the initial cost of the asset.
Given information: Initial cost of the truck = $23,000 Estimated life of the truck = 4 years Residual value of the truck = $4,600 Depreciation expense per year = (Initial cost - Residual value) / Estimated life Depreciation expense per year = ($23,000 - $4,600) / 4 = $4,350 To find the accumulated depreciation at the end of year 4, we multiply the depreciation expense per year by the number of years: Accumulated depreciation at the end of year 4 = Depreciation expense per year * Number of years Accumulated depreciation at the end of year 4 = $4,350 * 4 = $17,400 Book value of the truck at the end of year 4 = Initial cost - Accumulated depreciation Book value of the truck at the end of year 4 = $23,000 - $17,400 = $4,600 Therefore, the book value of the truck at the end of year 4 will be $4,600. b. If the Tundra was bought on April 12 of the first year, the depreciation taken in the first year will be based on the remaining months of the year.
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A good time to observe the dress code to prepare for your first day is during
a your interview
b. your second day
your Orientation
d the weekend
Answers
A good time to observe the dress code to prepare for your first day is during an interview. Thus, option A is correct.
What is interview?A planned interaction in which one party asks questions and the other responses is known as an interview. A one-on-one conversation between an interviewer and an interviewee is referred to as a "interview" in everyday speech.
In general, the individual should dress professionally or in business clothes for a job interview. The interview is a dialogue in which you and your prospective employer exchange information.
Therefore, it can be concluded that During an interview is a wonderful opportunity to review the dress code in order to get ready for your first day. Therefore, choice A is correct.
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The assurance bucket is filled with:___________
Answers
The assurance bucket is filled with trust and confidence.
In a business or customer service context, the assurance bucket represents the level of trust, confidence, and security that customers have in a product, service, or brand.
It encompasses factors such as reliability, quality, consistency, and credibility. When the assurance bucket is filled, customers feel confident in their decision to engage with a particular company or purchase a specific product.
Building assurance involves delivering on promises, providing clear and accurate information, offering warranties or guarantees, addressing customer concerns and complaints promptly, and consistently delivering high-quality products or services.
By filling the assurance bucket, businesses can foster long-term customer relationships, enhance brand loyalty, and differentiate themselves in competitive markets.
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As a producer, you are willing to supply the most goods at the highest price. This is because the highest
price earns you the
most demand
highest costs
most profits
Answers
Answer: most profits
Explanation:
Outline FIVE ways how the owner dealt with the crisis experienced in the workplace
Answers
The steps that owner/manager can deal with the crisis experienced in the workplace includes:
identifying issuedealing with ittimely communicationalways be preparedlearning from experienceWhat are workplace crises?These means series of problem that arises at the workplace such as worker shortage, work de-motivation, anonymous accusations, bribery, computer tampering, loss of data etc.
However, the management of workplace crises can impact the manager's performance as well if care are not taken
In conclusion, the proper management of the workplace crises will mitigate the negative effect of those crises.
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Discuss the importance of asset allocation in portfolio
formation.: Hedge versus Safe haven assets, will you consider
adding them into your portfolio during this period?
Answers
Asset allocation in portfolio formation is important because it helps investors balance risk and returns to maximize investment gains. Asset allocation involves diversifying investments across various asset classes such as equities, bonds, real estate, and commodities. This diversification helps spread the risk and allows investors to participate in the growth potential of different investment opportunities.
Hedge assets and safe haven assets are two types of investments that investors should consider including in their portfolio during certain periods. Hedge assets are investments that are designed to reduce risk in a portfolio. They are typically negatively correlated to the broader market and can provide a buffer during market downturns. Examples of hedge assets include options, futures, and short selling.
On the other hand, safe haven assets are investments that are considered to be relatively stable and tend to hold their value during times of market turbulence. They are typically positively correlated with the broader market and can provide stability in times of uncertainty. Examples of safe haven assets include gold, U.S. Treasuries, and defensive stocks such as utilities and consumer staples.
During periods of heightened market volatility or economic uncertainty, it is important for investors to consider including both hedge and safe haven assets in their portfolio. This can help provide balance and protect against downside risk while still allowing for potential growth. However, it is important to remember that asset allocation should be customized to each individual's investment goals, risk tolerance, and time horizon.
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Which demographic groups does Women in Motion serve?
Answers
Demographic groups do Women in Motion serve, Akela Peoples is an award-winning teacher and entrepreneur who has helped over 20,000 young women create career plans.
Demographic evaluation is the take a look at a populace primarily based totally on elements including age, race, and gender. Demographic information refers to statistically expressed socioeconomic records including employment, education, income, marriage rates, start rates and loss of life rates.
Examples of diagnosis. It is included. Demographic studies consist of 5 simple themes. Distribution over a geographical area. its composition (including age, gender, race, and different characteristics); modifications in populace size, distribution, and composition over time; Determinants and outcomes of populace growth.
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the central bank can reduce the level of credit by
Answers
Answer:it can increase the reserve requirements
Explanation:
Select all that apply The three-step analysis to determine cash provided or used by investing activities includes: Multiple select question. identifying changes in investing-related accounts reporting the cash flow effects explaining the changes using T-accounts and reconstructed entries identifying changes in cash accounts
Answers
Answer:
identifying changes in investing-related accounts
reporting the cash flow effects
explaining the changes using T-accounts and reconstructed entries
Explanation:
In analysing cash flows in a business there are 3 types of cash flow: from operating activities, from investing activities, and from financing activities.
Cash flow from investing activities involves cash used for various investments over a particular period.
This can include purchase of property, equipment, acquisition of other businesses, and investment in marketable securities.
The three-step analysis to determine cash for investing activities includes:
- monitoring changes that occurs in investment related accounts
- reporting of cash flow as it relates to investment
- use of T accounts and reconstructed entries to explain changes in cash flow
Can I get some assistance
Answers
Question 2:5
Question 3:D
Question 4:C
Question 5:B
What are references?
Answers
Answer:
Reference is a relationship between objects in which one object designates, or acts as a means by which to connect to or link to, another object. The first object in this relation is said to refer to the second object. It is called a name for the second object.
Explanation:
Answer:
Reference is a relationship between objects in which one object designates, or acts as a means by which to connect to or link to, another object
Explanation:
Within decision-making theory, what is a relationship between objectives and variables?
a. a model
b. a path
c. a link
d. a match
Answers
In decision-making theory, the relationship between objectives and variables is know as a model. Therefore, the correct option is A.
The model (option A) is created with the interactions between the objectives and variables of the decision-making process.
We can say that objectives are the desired outcomes or goals that one aims to achieve in a given context, such as optimizing the economy or preserving an ecosystem.
Variables, on the other hand, are the factors or elements that can be manipulated or controlled to influence the achievement of these objectives.
A model is a simplified representation of a complex system, which is used to understand, analyze, and predict the system's behavior.
In the context of decision-making, a model helps to organize and quantify the relationship between objectives and variables, allowing decision-makers to adapt their strategies based on sound judgment and evidence.
By considering the influence of variables on the achievement of objectives, decision-makers can assess the demand for different courses of action and make informed decisions to optimize outcomes in areas such as economy or ecosystem preservation.
The human mind plays a crucial role in interpreting and making sense of these models, and its ability to adapt and learn from experience enhances the effectiveness of the decision-making process.
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1. I started this business after dropping out of college and my buddy and I wanted to start this company. We had very little money or business knowledge but lots of drive. We now have the largest company in the world. Who am I?
Answers
The correct answer to this open question the following.
Although these situations could be related to some "tech" geniuses, we can say that we are talking about Steve Jobs.
It is true that Steve Jobs started his business after dropping out of college, and his buddy and Jobs wanted to start this company. They had very little money or business knowledge but lots of drive.
And Steve Jobs created the world empire called Apple. Indeed, he revolutionized the world of communications with his creations.
Steve Jobs dropped out of Reed College.
Another famous and billionaire in the tech industry that dropped college was Bill Gates, the founder of Microsoft. He left Harvard University in 1975 to form his own company.
The advertising industry was worth how much money in 1920?
$3,000
$300,0000
$3,000,000,000
$300,000,000
Answers
Answer:
3,000,000,000
Explanation:
let me now if I'm wrong
Carradine Company prepares an adjusting journal entry to accrue salaries at year-end. What effect will this entry have on the financial statements
Answers
Answer: Increase in Liabilities; Decrease in Equity
Explanation:
If Salaries are accrued at year end, the salary expense will be credited to the Salaries Payable account which is a liability account to reflect that the company owes its staff some money.
The amount owed will be debited to the salaries expense account and so will reflect in the Income statement where it will reduce the net income for the period. This means that it will reduce Retained Earnings for the period and as Retained earnings is an Equity account, Equity in total will decrease.
what are the building blocks of a personality select all that apply A. emotional qualities B, ethnic identity
Answers
Answer:
A
Explanation:Bcause ethnic identity should not determine youre personality. Many peoplefrom the same ethic identity may have different personalities.
Answer:
emotional qualities, ways of behaving
Explanation:
correct on quick check.
The dollar is said to appreciate against the euro if the exchange rate falls. choose one:
i. Other things the same, it will cost fewer euros to buy U.S. goods. the exchange rate falls. ii. Other things the same, it will cost more euros to buy U.S. goods. the exchange rate rises. iii. Other things the same, it will cost fewer euros to buy U.S. goods. the exchange rate rises. iv. Other things the same, it will cost more euros to buy U.S. goods.
Answers
For equipment purchased from the United States, European businesses will pay less in euros.
What would happen if the US dollar increased in value relative to the euro?The dollar now "buys" more euros if the exchange rate between the two currencies rises to $1 for 0.94€. As a result, purchasing European items is now more affordable. As U.S.-made goods are now more expensive, U.S. exports would decrease while imports from nations that use the euro would increase.An increase in the value of one currency in comparison to another is known as currency appreciation. For a variety of factors, including governmental policies, interest rates, trade balances, and business cycles, currencies appreciate against one another.learn more about dollar is said to appreciate against the euro here https://brainly.com/question/13825174
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Gross Domestic Product
Answers
2. The sale of a used car
4. The sale of illegal drugs
6. The sale of jets made by a US-owned company based in Japan
daniel has several properties listed around town. he receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. what should daniel do?
Answers
Daniel has a number of houses listed in the neighborhood. A potential customer calls to express great interest in one of the properties and request a showing time.
Daniel disclose his agency relationship with the seller to the prospective buyer. a property of the thing. an object's characteristics are its properties. In the Car class, there are several characteristics, or features, that all automobiles share, such as steering wheels, brakes, and color, albeit the values of each characteristic might vary from object to object.
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