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AveGali [126]
1 year ago
10

An investor purchased a "par bond" for $500 with the principal $500. Over n = 6 years the bond will pay 2% coupon annually. Find

the IRR of the cash flow stream (also called Yield to Maturity). Note: The bond has the following cash flow stream: at time zero payment $500 is made; for 6 years, at the end of each year the coupon payment (2/100)*500 is made; also at the end of year 6 the principal $500 is paid in addition to the last coupon.
Business
1 answer:
liubo4ka [24]1 year ago
3 0

Answer:

2.0%

Explanation:

Coupon received annually = $500*2% = $10

We have the cash flow from year 0 to year 6 as below:

Year 0 ($500)

Year 1 $10  

Year 2 $10  

Year 3 $10  

Year 4 $10  

Year 5 $10  

Year 6 $510   (Principal $500 & coupon $10)

IRR (internal rate of return) whereas  the present value of all cash flow is nil

It is very difficult to calculate IRR manually, but easily in excel = IRR(-500,10,10,10,10,10,510) = 2%

Please see excel attached

Download xlsx
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Answer:

Large firm can gain control of natural resources.

Explanation:

Investments by governements with surplus cash flows do worry trade expert as believe as investing in large firm by goverment will take away control of natural resouces by government and corporate will have more control on natural resources, sensitive technologies of nation and management control.

Generally, sovereign wealth funds (SWFs) is governement funded investment to improve economy and develop nation and it´s citizen, however, a fast-growing form of foreign direct investment is sovereign wealth funds will have adverse affect on country´s citizen and resources nation have.

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1 year ago
According to the international codes of conduct, mnes should ________.
Lunna [17]
The answer is option "<span>d. conduct research and development activities in developing countries".
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MNE stands for a multinational enterprise, which refers to an organization that has a globally deal with business sectors, creation as well as tasks in a few nations. Famous MNEs incorporate fast-food organizations or companies are McDonald's (MCD), (YUM), Starbucks Coffee Company (SBUX), Microsoft (MSFT), and so on. Other mechanical MNEs  incorporate vehicle producers, for example, Ford Motor Company, and General Motors (GMC). 
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2 years ago
Herschel uses an app on his smartphone to keep track of his daily calories from meals. one day his calories from breakfast were
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<span>Let the number of calories from lunch be called L. As such, breakfast is then L + 128, and dinner is 2L - 400. We can then sum the three meals and equate it to the total caloric intake, the known value of 1932.
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3 0
2 years ago
Read 2 more answers
Does PepsiCo’s portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo’s six segments? Wh
Snowcat [4.5K]

Answer:

Yes, PepsiCo’s portfolio exhibit good resource fit.

The cash flow characteristics of PepsiCo's six segments are

  • Ability to scout for future acquisitions.
  • Good credits and return on Investment.
  • Reinvestment in the development of business
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  • Ability to provide a buffer against future financial challenges
  • Good sales in and out of season,

The strongest contributors to PepsiCo is:

Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA)

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8 0
1 year ago
Wages paid to inspectors, factory accountants, and plant supervisors are classified as __________ __________, while wages paid t
Mademuasel [1]

Answer:

Indirect Labour Cost, Direct Labour Cost

Explanation:

Direct Labour Cost

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Indirect Labour Cost

These are wages paid to those group of workers or employees that perform tasks that do not directly contribute to the production of goods or performance of services. For example, we have accountants, security guards, administrative officers, supervisors, inspectors and so on. It is also known as Overhead cost. They are not involved in the active part of conversion of raw materials into products.

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