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tamaranim1 [39]
2 years ago
10

A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi

eld-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of \$100$100 in one year?) *Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.
Business
1 answer:
KengaRu [80]2 years ago
5 0

Answer:

0.00573

Explanation:

Cost of the bond today = $99.43

Value of bond at end of year = $100

Difference = $100 - $99.43 = $0.57

This $0.57 represents earnings on such bond value, that is yield on the bond.

Thus, yearly yield = $0.57/$99.43 = 0.00573

This value represents the discount rate of 1 year on $100 that is for which present value $99.43.

Final Answer

0.00573

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Frame Co. has an 8% note receivable dated June 30, 20X1, in the original amount of $150,000. Payments of $50,000 in principal pl
katen-ka-za [31]

Answer:

$8,000

Explanation:

Given the following:

Interest rate on notes receivable = 8%

Original principal balance = $150,000

Amount due by July 1 = $50,000

Therefore, in the June 30, 20X4 balance sheet, the original principal balance that has been outstanding will be :

$150,000 - $50000 = $100,000

Therefore, only $100,000 has been outstanding and is due for calculation in the interest on accounts receivable on June 30.

Interest rate * principal balance due at the date

8% * $100,000

0.08 * $100,000

= $8,000

5 0
1 year ago
Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude abo
klasskru [66]

Answer:

If both demand and supply increase by the same amount, the output level will increase while price will remain same.

If increase in demand is greater than increase in price then price and output both will increase.

If increase in supply is greater than increase in demand, price will decline while output will increase.

Explanation:

The changes in the price and quantity of salsa depending on the degree of change in supply and demand. In case both the variables increase by the same proportion, the price will remain the same while quantity will increase.

In case the increase in demand is more than increase in supply it would cause the price to increase because of excess demand. At the same time, the quantity will increase as well.

In case the increase in supply is more than increase in demand, the price will fall due to excess supply. The output will increase as well.

3 0
2 years ago
Wilson is offered a job in Kansas City that pays $50,000 and a job in Dallas that pays $60,000. Which pair of CPIs would ensure
Svetradugi [14.3K]

Answer:

option C is correct CPI in Kansas City is 125 and in Dallas is 150.

Explanation:

given data

Kansas City pays = $50,000

Dallas that pays = $60,000

solution

we know that CPI base year is always  = 100

first we get here real salary value in Kansas City that is express as

Real Value = Salary in Kansas City × (CPI base year ÷ CPI current year) ..........1

put her value we get

Real Value = $50,000 × \frac{100}{125}

Real Value =  $40000

and now we get here real salary value in Dallas that is express as

Real Value = Salary in Dallas City × (CPI base year ÷ CPI current year) ..........2

put her value we get

Real Value = $60,000 × \frac{100}{150}

Real Value =  $40000

so now we can see that both value is same in both city with CPI Kansas City = 125 and CPI Dallas = 150

so here correct option is c. 125 in Kansas City and 150 in Dallas  

4 0
2 years ago
E3.3 (LO 3) (Unknown Rate) HQ Ltd. purchased a used truck from Trans Auto Sales Inc. HQ paid a $4,000 down payment and signed a
ivolga24 [154]

Answer: $35,000

Explanation:

The payments of $1,033.34 at the end of every month is a constant amount which makes it an annuity.

Present value of annuity:

= Annuity * (1 - (1 + rate) ^-no. of periods) / rate

Rate needs to be made a monthly rate:

= 4%/12

= 4/12%

= 1,033.34 * ( 1 - ( 1 + 4/12%) ⁻³⁶/ 4/12%

= $35,000

Purchase price = Down payment + Present value of annuity

= 4,000 + 35,000

= $39,000

7 0
1 year ago
A first-rate SWOT analysis is a way to measure whether a company's value chain is longer or shorter than the chains of key rival
Lesechka [4]

Answer:

The answer is "provides a good basis for crafting strategy".

Explanation:

The SWOT analysis creates the foundation for something like a plan that also builds mostly on advantages of the business, tries to acquire the maximum opportunities for the industry, which defends it against threats to its well-being.  

This strategic thinking uses to support an individual in identifying strengths, weaknesses, opportunities, and threats associated with both the competition of enterprises or programs.

6 0
2 years ago
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