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kow [346]
2 years ago
8

George has been looking into buying a bond for his portfolio. His greatest investment objective is total return. Which of the fo

llowing bonds would be the BEST choice for George with this objective in mind?
A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%
B. A bond which has a price of $875, a Yield to Maturity of 3.95%, and a Current Yield of 3.80%
C. A bond which has a price of $825, a Yield to Maturity of 3.5%, and a Current Yield of 3.45%
D. A bond which has a price of $925, a Yield to Maturity of 3.75%, and a Current Yield of 3.65%
Business
1 answer:
Elanso [62]2 years ago
5 0

Answer:

A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%

Explanation:

Since George is focussed on achieving a high total return for his portfolio, he will consider adding a bond whose yield to maturity (YTM) is the highest. Among these options, option A would be ideal since it has a 4% YTM; he would probably not consider if the price of $850 is high or not . This is the annual interest rate paid on the bond investment.

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dusya [7]

Answer:

The tickets cost $208.74

Explanation:

The exchange rate is an indirect quotation from the dollar's perspective if dollar is considered to be the domestic currency.

We know that $1 =  0.618 pound

If the price of the ticked is 129 pounds, to convert it to dollars, we need to divide the pound amount by the exchange rate of dollar to pound.

Thus, 129 pounds in dollar are,

129 / 0.618 = $208.7378 rounded off to $208.74

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2 years ago
River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend grow
Tasya [4]

Answer:

10.34

Explanation:

This question refers to Dividend Growth Rate with respect to Stock valuation

The model estimates the dividends over a defined period based on an assumed growth rate to determine the future value of the stock.

The formular to calculating the expected value is as follows

\frac{Dividend Amount(1+Rate)^{Years}  }{Expected Return - Rate}

Please note:

Expected return and Rate are expressed in percentage i.e divided by 100.

Fitting into the formular:

\frac{1.15(1+0.0075)^{5} }{0.123 - 0.0075}

The resulting answer = 10.34

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2 years ago
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In this case, take his AGI and multiply by 7.5%. subtract that amount from the total medical expenses and you will have the amount that is deductible from his taxes.

3 0
2 years ago
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Answer:

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Explanation:

Break Even Point in Dollars = \frac{Total \: Fixed \: Cost}{Contribution \: Per \: Unit} \times Selling price per unit.

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Fixed Selling Expense = $1,500

Total Fixed cost = $3,000  +$1,500 = $4,500

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Sales Commission Cost = $0.20

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