Answer:
YTM approximated 4.08%
Explanation:
If the price of the bond changes to 1,060
we will need to calcualte the YTM
we could do it with an approxmation method like this:
Cuopon payment =1,000 x 4.5% = 45
Face value = 1,000
Purchase value= 1,060
n= 20 years
quotient 4.0776699%
It will yield approximately 4.08%
Answer:
No, he cannot
Explanation:
Under an insurance contract, the insured agrees to pay small amount regularly, known as insurance premium so as to avoid bearing unexpected, unforeseen huge amount of liability which may arise in the future. Such a loss is borne by the insurer i.e the insurance company.
In the given case, Ronald refused to purchase dental insurance initially and preferred repayment of his student loan. Since he did not hold any insurance at the time of accident/injury, he cannot enroll later for an event that has already occurred i.e the injury.
An insurance contract will now safeguard him against expenses on future accidents/ injuries but will not compensate him for the accident that has already occurred when he held no insurance.
Answer:
The invoice price is $ 969.
Explanation:
This question requires us to tell the invoice price (dirty price) of the bond. Clean price is given in the question. So we can easily calculate invoice price by adding accrued interest in dirty price. Detail calculation is given below.
Clean price = $ 951 -A
Accrued Interest = (5.3% * 1000)/12*4 = $ 17.67 -B
Invoice price = A+B = $ 969 (approx)
Answer:
$48.50
Explanation:
Relevant costs are the costs that are influenced by managerial decisions.They are future costs that have the tendency to affect the cash flow or outflow above the current level , that are relevant in making decisions . Examples are opportunity cost , incremental cost
The relevant cost in the scenario is the cost of buying from the supplier instead of in-house manufacturing , which is $48.50
