Bond P is a premium bond with a 9% coupon. Bond D is a 5% coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7%, and have 15 years to maturity. What is the current yield for Bond P? For Bond D? If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P? For bond D? Explain your answers and the interrelationships among the various types of yields.
Answers
The current yield is the annual coupon payment divided by the bond's price.
For Bond P:
Annual coupon payment = 9% x face value
Face value is not given, so let's assume it is $1,000 for simplicity.
Therefore, the annual coupon payment = 0.09 x $1,000 = $90
The YTM is 7%, so we can use this as the discount rate to find the current bond price.
Using a financial calculator or spreadsheet, we get the price of Bond P to be approximately $1,212.84.
The current yield is therefore $90 / $1,212.84 = 0.0743, or 7.43%.
For Bond D:
Annual coupon payment = 5% x face value
Again assuming a face value of $1,000, the annual coupon payment = 0.05 x $1,000 = $50
The YTM is still 7%, and using this as the discount rate, the price of Bond D is approximately $872.16.
The current yield is therefore $50 / $872.16 = 0.0573, or 5.73%.
The expected capital gains yield over the next year can be estimated by using the formula:
Expected Capital Gains Yield = (Expected Price Next Year - Current Price) / Current Price
The expected price next year can be estimated by assuming that interest rates and credit risk remain unchanged, in which case the bonds will be valued at a 6% YTM (7% - 1%). We can use this to estimate the expected price next year and hence the expected capital gains yield.
For Bond P:
The current price is $1,212.84.
At a 6% YTM, the bond price would be approximately $1,324.31.
The expected capital gains yield is therefore ($1,324.31 - $1,212.84) / $1,212.84 = 0.0921, or 9.21%.
For Bond D:
The current price is $872.16.
At a 6% YTM, the bond price would be approximately $935.82.
The expected capital gains yield is therefore ($935.82 - $872.16) / $872.16 = 0.0732, or 7.32%.
The interrelationships among the various yields can be explained as follows:
The current yield represents the return an investor would earn from the coupon payment alone, assuming they hold the bond for one year. It does not take into account any capital gains or losses if the bond is sold before maturity.
The yield to maturity (YTM) reflects both the coupon payments and any capital gains or losses if the bond is held until maturity.
The current yield and YTM are related inversely; as the bond price goes up, the YTM goes down, and vice versa.
The expected capital gains yield represents the estimated change in bond price over the next year due to changes in interest rates. If interest rates go down, the bond price will go up, resulting in a positive capital gains yield, and vice versa.
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Related Questions
effective economic demand requires
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"Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics."
Answers
Answer:
Microeconomics
How much will Ultravision charge for "Call of Obligation?"
Is Ultravision able to sell all of the "Call of Obligation" games it produces or do they need to produce more?
How does Ultravision choose to market "Call of Obligation?"
How much will Ultravision pay the developers of the game?
Macroeconomics
Has the country's unemployment rate changed as Ultravision hired a huge team of workers to develop the game?
Have the millions of dollars that people have spent on video games worldwide affected the Gross Domestic Product (GDP) in their respective countries?
How much less economic output occurs countywide because workers call in sick to stay home and play either "Call of Obligation" or another video game?
Explanation:
Microeconomics refers to the study of the events resulting from responses of individuals to changes in motivation, prices, measures to produce and methods of production.
Macroeconomics
Macroeconomics is the subdivision of economics that is concerned with the functioning and organizational structure, characteristics, behavior and the selection processes and making decision with regards to the entire economy.
According to the pie chart, which function consumed the largest portion of government expenditures in 2003
Answers
According to the pie chart, providing retirement income for older citizens consumed the largest portion of government expenditures in 2003. It takes up about 22% of the whole expenditure.
What does retirement income entail?Social Security payouts and any other benefits from annuities, retirement or profit-sharing plans, insurance policies, IRAs, etc. are all examples of sources of retirement income.
Income from retirement may be wholly or partially taxed.
What Constitutes a Good Retirement Income?
Approximately 80% of your pre-tax salary before retiring, according to AARP, is a respectable retirement income. This is due to the fact that you won't be covering any income tax or other employment-related expenses once you stop working.
Where Does the Money for Retirement Come From?
There are many different ways for people to fund their retirement. These might include inflation-protective investment accounts, government-sponsored benefits, or ongoing wages. In general, it's better to have a variety of these kinds of income to make sure you have enough to live comfortably.
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lew was the perfect hire for the floor manager position, which is why you were shocked when he left after six months to return to his former job. what could you have done to prevent lew from leaving?
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To prevent Lew from leaving after six months on the job. we could have taken several actions.
Firstly providing comprehensive training and development opportunities would assist him to grow within his role. This would ensure he had a good understanding of the job requirements, expectations, and potential career paths within the organization. Secondly, we could offer a competitive compensation and benefits package, which would incentives him to stay and reward his performance.
Thirdly, conducting regular check-ins and performance evaluations would ensure he was satisfied with the job along with addressing any concerns or issues he may have had. Finally creating a transparent culture of open communication and feedback would provide an opportunity to address any issues and support him to excel in his role.
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During the _____ stage of the Product Life Cycle, technical problems are common and the product is fine-tuned.
Answers
Answer:
introductory stage
Explanation:
Answer:
-During the INTRODUCTORY_ stage of the Product Life Cycle, technical problems are common and the product is fine-tuned.\(hope \: it \: helps\)
the level of savings in an economy: multiple choice can be an important determinant of future productivity. can be an important determinant of capital investment. can be a source of funding for physical capital. all of these are true.
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the level of savings in an economy:
determinant of future productivity. can be an important determinant of capital investment. can be a source of funding for physical capital.Thus, all of these are true and correct.
What is saving?Savings are unspent income or deferred consumption. One way to save is to spend money. Set aside in a savings account, retirement account, mutual fund, or cash. Savings also means reducing expenses, such as recurring expenses.Savings are the portion of your income that is not spent on current expenses. In other words, it is money that is reserved for future use and not immediately spent.Saving is a way out of life's uncertainties and offers opportunities for quality living. Many hurdles and obstacles in life can be overcome by systematically investing large sums of money.
Thus, saving means a determinant of future productivity which can be an important determinant of capital investment and it can be a source of funding for physical capital.
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Who watches Riverdale ? if you do can we be friends(pLEASE DON'T DELETE) and also who is your fav character from Riverdale
Answers
Answer:veronica
Explanation:
sure
Answer:
yes i love riverdale my fav character is cheryl or betty
Explanation:
What types of insurance is David likely to get through his employer?
David has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefits. For example, his employer’s (Blank)
insurance covers prescription drugs and immunizations. David will also be receiving (blank) insurance at no cost from his employer.
1. casualty, health, life
2. automobile, disability, renters
Answers
Answer:
1. health 2. disability
Explanation:
Answer:
health & disability
Explanation:
Engi Sola Corp. Manufactures solar engines for tractor trailers. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $9,700 per unit, and the credit price is $11,100 each. Credit is extended for one period. The required return is 1.9% per period. If Engi Sola extends credit, it expects that 30% of the customers will be repeat customers and place the same order every period forever, and the remaining customers will be one-time orders.
Answers
Answer:
The net present value (NPV) of the decision to grant credit is $2,938,157.89.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Engi Sola Corp. Manufactures solar engines for tractor trailers. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $9,700 per unit, and the credit price is $11,100 each. Credit is extended for one period. The required return is 1.9% per period. If Engi Sola extends credit, it expects that 30% of the customers will be repeat customers and place the same order every period forever, and the remaining customers will be one-time orders.
Calculate the NPV of the decision to grant credit.
The explanation of the answer is now given as follows:
Number of new orders = 125 units
Percentage of repeat order = 30%
Number of order that will be repeated forever = Number of new orders * Percentage of repeat order = 125 * 30% = 37.50 units
Credit price per unit = $11,100
Variable cost per unit = $9,700
Contribution margin per unit = Credit price per unit - Variable cost per unit = $11,100 - $9,700 = $1,400
Total contribution for all new order = Number of new orders * Contribution margin per unit = 125 * $1,400 = $175,000
Total contribution margin for order that will be repeated forever = Contribution margin per unit * Number of order that will be repeated forever = $1,400 * 37.50 = $52,500
Net present value (NPV) of total contribution margin for order that will be repeated forever = Total contribution margin for repeated order forever / Required return = $52,500 / 1.9% = 2,763,157.89
Net present value (NPV) of the decision to grant credit = Total contribution for all new order + NPV of total contribution margin for order that will be repeated forever = $175,000 + 2,763,157.89 = $2,938,157.89
Therefore, the net present value (NPV) of the decision to grant credit is $2,938,157.89.
The ____________________ attests to the fairness of the presentation of the financial statements and states whether the financial statements are presented in accordance with gaap.
Answers
The require answer is Auditor's report.
Auditor's report:
If the financial accounts are presented fairly and in line with GAAP, it is stated in the auditor's report and attested to by the auditor.The auditor's report expresses the auditor's judgment regarding the accuracy and conformity with GAAP of a company's financial statements.The auditor's view on whether a company's financial statements adhere to generally accepted accounting standards (GAAP) and are free of substantial misstatement is expressed in an auditor's report, which is a written letter from the auditor.A report from the auditor stating that the financial statements and accompanying disclosures were presented fairly. The outcome of this evaluation is the auditor's report, which attests to the fairness of the financial statements' presentation and related disclosures. The existence, completeness, rights and duties, accuracy and value, and presentation and disclosure of financial statement assertions are among those that a company's statement preparer attests to.Learn more about Auditor's report here brainly.com/question/7890421
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now suppose the secretary of labor proposes an increase in the minimum wage. what effect would this increase have on employment? does the change in employment depend on the elasticity of demand, the elasticity of supply, both elasticities, or neither?
Answers
An increase in the minimum wage would have an effect on employment. The effect would depend on the elasticity of demand and the elasticity of supply.
If the demand for labor is inelastic, an increase in the minimum wage would lead to a smaller decrease in employment than if the demand for labor is elastic. Similarly, if the supply of labor is inelastic, an increase in the minimum wage would lead to a smaller increase in employment than if the supply of labor is elastic. Therefore, the change in employment depends on both the elasticity of demand and the elasticity of supply.
In general, the more elastic the demand and supply of labor are, the greater the effect an increase in the minimum wage will have on employment. If both the demand and supply of labor are elastic, an increase in the minimum wage will lead to a larger decrease in employment than if either the demand or supply of labor is inelastic.
Conversely, if both the demand and supply of labor are inelastic, an increase in the minimum wage will lead to a smaller decrease in employment than if either the demand or supply of labor is elastic.
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results in increased scarcity and inefficiency in the production of a good or service.
Answers
Shifting the demand curve to the right indicates an increase in demand, while shifting it to the left indicates a reduction in demand. increases the scarcity of something and makes it more inefficient to produce.
What do excess and scarcity mean?When more is required of an item, service, or resource than is available, there is a shortage. When an item, service, or resource is delivered in higher amounts than what is required, this is referred to as a surplus.
What generates a surplus?When the amount of a good or asset exceeds the amount that is actively consumed, a surplus is created. A company will have an excess of 600 unsold Christmas trees if it produces 1,000 trees but only receives orders for 400 of them.
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Do you believe that employees communication helps on a business?
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Answer:
Yea I do cus the more people understand each other the more things go by smoothly, you know there's a saying, ✨communication✨ is the answer
Over the next 10 years, a company projects its continuous flow of revenue to be R(x) = 80e0.15 thousands of dollars and its costs to be C(x) = 0.9x² + 60 thousands of dollars, where z represents the number of years from now. Approximate, to the nearest dollar, the profit this company can expect to make over the next 10
years.
Answers
The company can expect to make a profit of approximately $X over the next 10 years.
To calculate the profit, we need to subtract the costs from the revenue over the given time period. The revenue function R(x) represents the continuous flow of revenue, and the cost function C(x) represents the costs incurred. The profit function P(x) can be obtained by subtracting the cost function from the revenue function:
P(x) = R(x) - C(x)
In this case, the revenue function is given as R(x) = 80e^0.15x, and the cost function is given as C(x) = 0.9x^2 + 60. We can substitute these functions into the profit function to calculate the profit over the next 10 years.
P(x) = 80e^0.15x - (0.9x^2 + 60)
To find the profit over the next 10 years, we evaluate the profit function at x = 10:
P(10) = 80e^0.15(10) - (0.9(10)^2 + 60)
Evaluating this expression will give us the approximate profit that the company can expect to make over the next 10 years.
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Suppose a consumer buys a frozen cheese pizza at the grocery store at a price of $10. The frozen pizza company sold the pizza to the store for $5. The frozen pizza company purchased the pizza dough and tomato sauce from a food processing company at a price of $2 and bought the cheese from a dairy at a price of $1. How much has GDP increased
Answers
Answer:
Only the market value of new finished goods are included in the GDP, so $10 would be added.
Explanation:
Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.
What should you do before a job shadowing experience?
O Choose a casual outfit to wear.
O Contact a friend to see if they will go with you.
O Reach out to the employees and ask questions.
O Research the organization where you will be shadowing.
Please help ASAP
Answers
Answer:
Research the organization where you will be shadowing.
A building that is designed and equipped with machinery for manufacturing textile products are called: _______
Answers
A textile mill or textile factory is a structure that is built and furnished with equipment for producing textiles. A structure built with machinery for the production of textile products is known as a textile mill.
A textile mill is a place of business where textile items are manufactured using specialised tools and machines. The earliest known textile factory was founded in England in the late 16th century, beginning a long history of textile mills. Modern textile mills are outfitted with cutting-edge machinery and technology to produce a variety of items, including fabric, apparel, and other textile goods. A textile mill's machinery normally consists of spinning, weaving, and finishing machines, as well as additional dyeing, printing, and cutting tools. Many economies depend heavily on the textile industry, which also provides a huge number of workers with a valuable source of employment.
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Please help............
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Give the names of different types of offices. Why are they necessary?
Answers
Answer:
Private Office.
Coworking Desk.
Virtual Office.
Enterprise Office.
Explanation:
The primary reason to have an office is collaboration. Every business needs its employees to work together as a team to create and innovate. in addition to productivity, a functional workspace or office contributes to the value of a company and also helps in attracting quality workforce and clients.
Yes, because the investment will yield $29,920 more than putting the money in a bank. B. Yes, because the investment will yield $33,660 more than putting the money in a bank. C. No, because the investment will yield $37,400 less than putting the money in a bank. D. Yes, because the investment will yield $37,400 more than putting the money in a bank. What is the present value (PV) of $40,000 received twenty-five years from now, assuming the interest rate is 6% per year? A. $26,000 B. $16,310 C. $9,320 D. $7,922 paid if the company pays a $5 dividend? A. $4.64 B. $3.1 C. $3.87 D. $5.42
Answers
Based on the given information, the present value (PV) of $40,000 received twenty-five years from now at an interest rate of 6% per year is $9,320 (Option C). Additionally, the dividend to be paid if the company pays a $5 dividend would result in a present value equal to the dividend amount itself, which is $5 (Option D).
To calculate the present value (PV) of $40,000 received twenty-five years from now, we can use the formula for present value of a future amount: PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. Plugging in the values, we get PV = 40,000 / (1 + 0.06)^25 ≈ $9,320, which corresponds to Option C.
For the dividend payment, the present value would be equal to the dividend amount itself because it is received immediately. Therefore, the present value of a $5 dividend is $5, as stated in Option D.
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Enter text- Apply A text Effect
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samantha roberts was hired as a customer service representative by the elevenore corporation almost 20 years ago. since then, she has moved around in the company and taken on additional responsibilities as part of her job duties. at one point, 80 percent of her job duties and responsibilities were things that she did not do when she first started. this was a cause of concern for her because samantha felt that her job was no longer what she expected when she started, and her current salary was not in alignment with her current job responsibilities. the problems that occurred in this situation could have been prevented if management or hr had conducted a(n)
Answers
Conducting a job re-evaluation or job reclassification process would have allowed management and HR to address the concerns faced by Samantha Roberts.
The problems that occurred in Samantha Roberts' situation could have been prevented if management or HR had conducted a job re-evaluation or job reclassification process.
Job re-evaluation or job reclassification is the process of reviewing and reassessing an employee's job duties, responsibilities, and level of compensation to ensure alignment with the current role. This process is crucial when an employee's job has significantly changed over time, as in Samantha's case.
By conducting a job re-evaluation, management and HR would have been able to recognize the extent of Samantha's expanded job responsibilities and the discrepancy between her initial role and her current role. This would have provided an opportunity to adjust her job description, salary, and career progression accordingly.
A comprehensive job re-evaluation would involve gathering information about the current tasks, responsibilities, and skills required for the position. This could be done through interviews with Samantha and her supervisors, analyzing her performance evaluations and job performance metrics, and comparing her role to industry standards and benchmarks.
Based on the findings of the job re-evaluation, management and HR could have taken appropriate actions. They could have provided Samantha with a salary adjustment to align with her increased responsibilities or considered promoting her to a higher-level position.
Additionally, they could have offered her professional development opportunities to enhance her skills and support her in her expanded role.
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Table 1 shows the financial position of the Smithville Bank once $4895.00 has been deposited. Assume that the required reserve ratio is 5.00%. The bank manager decides to lend Billy Bob Smith all of the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula Mae then deposits the money in her account back at the Smithville Bank. Table 2 should show the bank's accounts after the loan is made and the funds again deposited.
Table 1: Original Assets and Liabilities
Assets Liabilities
Reserves: $4895.00 Deposits: $4895.00
Table 2: Original Assets and Liabilities after Bank Makes a Loan
Assets Liabilities
Reserves:? Deposits: ?
Loans" ?
1. What are the bank's loans in Table 2?
2. What are the bank's reserves in Table 2?
3. What are the bank's deposi
Answers
Based on the details given in the table, the following are true of the Smithville Bank:
Bank loans are $4,650.25.Bank reserves are $4,895Bank deposits are $9,545.25.What are the bank loans?These can be found as:
= Amount deposited x ( 1 - required reserves)
= 4,895 x (1 - 5%)
= $4,650.25
What the bank's reserves?The bank's reserves are the same as the new deposits without the reserve requirement being taken.
This leaves it as the amount that was deposited of $4,895.
What are the bank's deposits?This is found as:
= Initial deposit + Loan created
= 4,895 + 4,650.25
= $9,545.25
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On september 17, 2024, ziltech, incorporated, entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By december 31, 2024, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $11 million. The pretax income from operations of the division during 2024 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 25%. Ziltech reported net income for the year of $7. 2 million. Required: determine the book value of the division's assets on december 31, 2024
Answers
The book value of the division's assets on december 31, 2024 will be $17 million.
How to calculate the book value:
Income: $7.2 million; 20% tax rate As a result, pretax income ($7.2/80%) will be $9. However, pretax income from the division plus pretax income from continuing operations equals total pretax income. Pretax earnings: $4 million plus $14 million in total. Pretax income totaled 18 million dollars.
Hence, net fair value of the division's assets at year's end plus recognised loss on sale equals book value of the division's assets, which equals $11 million plus $6 million. The division's assets have a book value of $17 million.
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Brands that are trusted by internet consumers benefit by: a. more visitors to their websites. b. reduced cost of customer acquisition. c. all of these are correct. d. wider visibility.
Answers
Brands that are trusted by internet consumers benefit by a. more visitors to their websites. b. reduced cost of customer acquisition. d. wider visibility. The correct answer is c. all of these are correct.
Brands that are trusted by internet consumers benefit in multiple ways, including:
a. More visitors to their websites: When a brand is trusted, it is more likely that internet consumers will visit their website to learn more about their products or services.
b. Reduced cost of customer acquisition: Building trust with internet consumers can lead to more effective and efficient customer acquisition, as loyal customers are more likely to make repeat purchases and recommend the brand to others.
c. Wider visibility: Brands that are trusted by internet consumers may benefit from increased visibility on social media, online forums, and other online platforms as consumers share positive experiences and feedback about the brand.
Therefore, all of the options listed in the question are correct.
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Kevin works for a company which produces printers. A printer sells for $163. 95 and costs $48. 28 to produce. In one month, Kevin’s company sold 427 printers, earning a profit of 22,599. 9. How great were the company’s non-production overhead expenses, to the nearest dollar? a. $13,410 b. $20,616 c. $24,809 d. $26,792.
Answers
The company's non-production overhead expenses is $26,792.
The first step is to determine the net profit from selling the printers.
Profit = (selling price - cost price) x number of printers sold
(163.95 - $48.28) x 427
= 115.67 x 427
= $49,391.09
The second cost is to determine the difference between the profit calculated above and the profit given in the question:
$49,391.09 - 22,599. 9 = $26,792
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What type of relationship exists between interest rates and aggregate spending?
There is a(n) ______ relationship between interest rates and aggregate spending. When interest rates ______, aggregate spending decreases.
Answers
Answer:
mark brainlest
Explanation:
Higher real interest rates reduces aggregate expenditure by increasing the cost of loans while increasing the earnings from savings. Both factors reduce expenditures by reducing consumption and investments, and therefore, aggregate expenditure.
An e-commerce manufacturer wants to invest $85000 in making the factory mold for a new product. Each unit will cost $2.10 to make, plus an additional $0.15 in packaging. This good will sell for $30 each but the manufacturer will incur the $5/unit shipping cost.
1. What is the fixed cost?
2. What is the variable cost?
3. What is the contribution margin?
4. What is the break-even point?
5. How many units must be sold to earn $75000 in profit?
Answers
The fixed cost is $85,000.
The variable cost per unit is $7.25.
The contribution margin is $22.75.
The break-even point is 3,736.26.
The units to be sold to have a profit of $75,000 is 7033
What are the cost functions?A fixed cost is a cost that does not change with the level of output of the good produced. Variable cost is the cost that changes with the level of output. Contribution margin is selling price per unit les variable cost per unit. Breakeven point is the point where total selling price is equal to total cost price.
Variable cost = $2.10 + $0.15 + $5 = $7.25
Contribution margin = selling price - variable cost
$30 - $7.25 = $22.75
Break-even point = $85000 / $22.75 = 3736.26
Profit = selling price - cost price
$75,000 = (30y) - ($85,000 + 7.25y)
Where y is the number of units
$75,000 = 22.75y - 85,000
$160,000 = 22.75y
y = 7033
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This is the limited, speculative purchase of stocks and bonds of a foreign company by individuals or mutual funds. A. Portfolio investment
B. FDI
C. TNI
D. Direct investment
Answers
The restricted, speculative acquisition of foreign firm bonds and equities by private investors or mutual funds is known as portfolio investment. Option A is Correct.
A popular method of investing in foreign countries is through a foreign portfolio investment (FPI). It consists of financial assets and securities owned by foreign investors. Foreign institutional investment is the term used to describe the portfolio investments made by foreign institutional investors. When investors from another country buy securities and other financial assets, this is referred to as a foreign portfolio investment (FPI).
Stocks, bonds, mutual funds, exchange traded funds, American depositary receipts (ADRs), and global depositary receipts are a few examples of overseas portfolio investments (GDRs). Investments made by a pension fund, mutual fund, or other institutional investment might be referred to as portfolio investments. Buying it outright is a direct investment, in comparison. Option A is Correct.
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: A bond is quoted at a price of $113.87. What is the actual trading price of this bond? State your answer with two decimal places.
Answers
A bond quote is the most recent amount at which a bond is traded, converted to a point system, and expressed as a percentage of par value.
Par value is typically fixed at 100, or 100% of a bond's $1,000 face value. If a corporate bond is listed at 99, for instance, it is currently trading at 99% of its face value. Quotes for bonds can also be written as decimals. Corporate bonds, for instance, are quoted in 1/8ths, whereas government bills, notes, and bonds are mentioned in 1/32ths. A bond quote of 99 1/4, therefore, reflects 99.25% of par. The price per bond comes to $992.5 after converting the proportion to 99.25 and increasing by 10. Bonds may be mentioned with a yield to maturity (YTM) in addition to a percentage of par value.
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