Two years ago Sam bought a newly issued three-year US government bond (a risk-free asset) with a principle of $1000 and a 5% coupon rate. This year, one year before maturity, Sam decides to sell the bond and sees that the price people are willing to pay for his bond is now $1019.

Required:
a. Has the interest rate gone up or down since Sam purchased the bond?
b. What is the the current interest rate for bonds when Sam decides to sell?

Answers

Answer 1

Answer and Explanation:

In the case when sam purchased the bond, the rate of interest on the bond is

= 50 ÷ 1000

= 5%

Now, after the change in price, the interest rate is:

= 50 ÷ 1019

= 4.907%

a. So here the rate of interest is reduced or gone

b. And ,the current interest rate is 4.907%

so the same is to be considered and relevant


Related Questions

You invent of a new type of dog leash. You choose a market segmentation approach and decide to target the large national population of dog owners. After reviewing what identifies an ideal market you realize your segmentation approach does not meet any of the effective segmentation conditions. At this point you should:

Answers

Answer:

refine your approach by going back to the drawing board

Explanation:

Considering the scenario described above in the question, the best thing to do is "refine your approach by going back to the drawing board."

This will give you the chance and opportunity to look for a better plan, then find a perfect segmentation approach that really meets and satisfy all of the effective segmentation conditions.

what is reductionasim​

Answers

Answer:

Thus, the ideas that physical bodies are collections of atoms or that a given mental state (e.g., one person's belief that snow is white) is identical to a particular physical state (the firing of certain neurons in that person's brain) are examples of reductionism.

Explanation:

Team Sports has 4.9 million shares of common stock outstanding, 2.9 million shares of preferred stock outstanding, and 29 thousand bonds. If the common shares are selling for $3.90 per share, the preferred share are selling for $15.9 per share, and the bonds are selling for 98.91 percent of par, what would be the weight used for common stock in the computation of Team's WACC

Answers

Answer:

The weight used for common stock in the computation of Team's WACC is 20.35%.

Explanation:

Since par value of a bond is $1,000, we have:

Bond selling price = Bond par value * Selling price percentage = $1,000 * 98.91% = $989.10

the weight used for common stock in the computation of Team's WACC can be calculated as follows:

Value of common stock = Number of shares of common stock outstanding * Common stock price per share = 4,900,000 * $3.90 = $19,110,000

Value of preferred stock = Number of shares of preferred stock outstanding * Preferred stock price per share = 2,900,000 * $15.9 = $46,110,000

Value of bond = Number of bonds * Bond selling price = 29,000 * $989.10 = $28,683,900

Team's total value = Value of common stock + Value of preferred stock + Value of bond = $19,110,000 + $46,110,000 + $28,683,900 = $93,903,900

Therefore, we have:

Weight of common stock = Value of common stock / Team's total value = $19,110,000 / $93,903,900 = 0.2035, or 20.35%

Therefore, the weight used for common stock in the computation of Team's WACC is 20.35%.

What is the IRR, assuming an industrial building can be purchased for $250,000 and is expected to yield cash flows of $18,000 for each of the next five years and be sold at the end of the fifth year for $280,000

Answers

Answer:

9.2%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 =  $-250,000

Cash flow in year 1 = $18,000

Cash flow in year 2 = $18,000

Cash flow in year 3 = $18,000

Cash flow in year 4 = $18,000

Cash flow in year 5 = $18,000 + $280,000

IRR = 9.2%

To determine IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Assume that, on January 1, 2021, Sosa Enterprises paid $2,140,000 for its investment in 33,000 shares of Orioles Co. Further, assume that Orioles has 110,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,160,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,900,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2021: Net Income $ 400,000 Dividends declared and paid $ 240,000 Market price of common stock on 12/31/2021 $ 80 /share What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.

Answers

Answer:

$2,152,750

Explanation:

Calculation to determine What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.

Acquisition price for 30% share $2,140,000

($33,000 / $110,000 * 100=30%)

Add: Net income $120,000

($ 400,000 * 30%)

Less: Dividend ($72,000)

($240,000 * 30%)

Less: Excess depreciation ($35,250)

($940,000 / 8 yrs*30%)

[$10,000,000-$7,160,000-$1,900,000)=$940,000]

Investment reported in Balance $2,152,750

Therefore the amount that Sosa Enterprises would report in its year-end 2021 balance sheet for its investment in Orioles Co is $2,152,750

In the two-country model of international labor mobility:________
A) the long-run equilibrium assumes countries' policies place significant restrictions on migration.
B) the long-run equilibrium assumes that desired migration exceeds actual migration.
C) the long-run equilibrium assumes that actual migration exceeds desired migration.
D) the long-run equilibrium is the result of a divergence of the real wages in the two countries.
E) the long-run equilibrium assumes that desired and actual migration are equal.

Answers

E) the long-run equilibrium assumes that desired and actual migration are equal.

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $178,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $36,562.
What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.)
Internal rate of return

Answers

Answer: 10%

Explanation:

You can use Excel to solve for this.

The investment will be in negative as shown below.

Input the increase in net annual cash flows 7 times to represent 7 years.

IRR = 9.9999%

= 10%

If the United States passed a tariff on imported steel which of the following would directly benefit?

A. Foreign steal companies

B. All Americans would benefit because of the lower price for steel

C. Businesses which imports steel

D. American steel producers

Answers

businesses which imports steel C

Elbert uses FedEx in a scheme to defraud Global Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Elbert can be punished by

Answers

Answer: None of the choices.

Explanation:

The options to the question are:

a. imprisonment for up to fifty years.

b. imprisonment for up to twenty years and/or fines.

c. fines up to $5 million.

d. none of the choices

Based on the questions asked, the options provided aren't correct. It should be noted that Elbert can be punished by imprisonment in this case for a period of your to about five years as well as a fine of up to $1000.

Annual interest rate 4.00%

Loan Amount 4923275

Years 7

Grace Period 2 Years

Loan Period 5 Years

Total 7 Years

Project 1.5 years (development or initial investment period)

further 10 years of operation (life of the project)

Repayable in 5 equal installments.

I need figures for interest expense, interest paid, and principal repayment. Anyone can help me?

Answers

Answer:

formula is PRT÷10

Explanation:

so solve it

Which of the following are wholesale and which are retail?
(a ) large-scale deposites made by Firms at negotiated rates of in interest. ...........(retail to wholesales)
(b) Loans made by high Street banks at published rates of interest........ (retail (wholesales)
(c) Deposite in savings accounts high street banks .................(retail /wholesales)
(d) Deposite in savings accounts in building Societies ............. (retail/Wholesale)
(e) Large-scale loans to industry syndicated through several banks........... (retail/ Wholesale)​

Answers

E=whole sale

B=retail

D=retail

A=whole sale

C=whole sale

Freddie's Food Service uses QuickBooks Desktop. They do not track or sell inventory. They have regular customers that they want to invoice automatically on a weekly basis. They would like to review a Sales by Customer by Month report regularly. The company currently pays their vendors in QuickBooks Desktop using the online bill pay service, QuickBooks Bill Pay. After converting to QuickBooks Online, which 3 setup and customization steps are appropriate for this client? Customize reports Turn off multicurrency Rebuild data Review recurring transactions Set up initial quantity on hand and cost for each product Set up and implement an online bill pay service

Answers

Answer:

Customize reports

Review recurring transactions

Set up and implement an online bill pay service

Explanation:

Considering the situation described above, after converting to QuickBooks Online, the 3 setup and customization steps that are appropriate for this client are the following:

1. Customize reports: this includes forms and reports and, if possible to memorize reports.

2. Review recurring transactions: this is to restore desktop QuickBooks memorized transactions.

3. Set up and implement an online bill pay service: this is done either through Intuit Online Payroll or QBOP.

1. ______ are costs that do not require a monetary payment
A) Accounting costs
B) Explicit costs
C) All opportunity costs
D) Implicit costs
2. Joe runs a restaurant. He pays his employees $200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning $150,000 per year. What would economists say is Joe’s cost of running the restaurant?
A) $150,000
B) $200,000
C) $250,000
D) $400,000

Answers

1. The cost that does not need a monetary payment is the implicit cost.

2. The cost of running the restaurant is $400,000.

1.

Implicit cost is normally:

The opportunity cost that occurred at the time when the company used the resources i.e. owned for the production without considering any payment regarding the resources.Here monetary payment should not be involved.

Therefore rest of the given costs should involve monetary payments.

2. The cost of running the restaurant is as follows:

= Employee payment + ingredients cost + lawyer earnings

= $200,000 + $50,000 + $150,000

= $400,000

Therefore we can conclude that

1. The cost that does not need a monetary payment is the implicit cost.

2. The cost of running the restaurant is $400,000.

Learn more about the opportunity cost here: brainly.com/question/13036997

The residual income valuation model is a rigorous and straightforward valuation approach, but the analyst should be aware of all of the following implementation issues that will hinder its ability to measure firm value correctly except: _________

a. common stock transactions
b. portions of net income attributable to equity claimants other than common shareholders
c. dirty surplus accounting items
d. positive book value of equity

Answers

Answer:

d. positive book value of equity

Explanation:

The residual income valuation model is the valuation approach that could have the issues when it is implemented that can create difficulties for measuring the firm value in an accurate way for transactions done for common stock, net income portion for equity other than common stock,, and dirty surplus for an accounting items but not for the positive equity book value as it does not create the difficulties

Marketing strategy of strepsils company

Answers

Answer:

InstallCourses

SWOT ANALYSIS ›FMCG ›

Strepsils SWOT Analysis, Competitors, STP & USP

Published by MBA Skool Team, Last Updated: April 20, 2020

SWOT analysis of Strepsils analyses the brand by its strengths, weaknesses, opportunities & threats. In Strepsils SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Strepsils to benchmark its business & performance as compared to the competitors. Strepsils is one of the leading brands in the FMCG sector.

The table below lists the Strepsils SWOT (Strengths, Weaknesses, Opportunities, Threats), top Strepsils competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

Macrozine Inc. provides support for employees faced with ethical dilemmas. An ethics compliance officer is available in the Human Resources office or through an employee hotline. This is an example of ethical:_________

a. reasoning
b. awareness
c. whistle-blowing
d. action

Answers

Answer:

d. action

Explanation:

In Business, this would be an example of ethical action. These are actions that companies take in order to prove that they are committed to their employees. Especially making sure that they are safe, respected, and mentally/emotionally good within the work environment. By providing such services such as an employee hotline and a HR department they are providing resources for the employees to voice their concerns and needs in case of any dilemma in the company.

price elasticity of demand

Answers

Answer:

Price elasticity of demand is a measure of the change in the quantity purchased of a product in relation to a change in its price.

Explanation:

Plant assets sometimes are purchased as a group in a single transaction for a lump-sum price. This transaction is called a __________, or group, bulk, or basket purchase.

Answers

Answer:

Lump-Sum Purchase

Explanation:

Plant assets

This is simply known as well founded or important assets of an essential or useful life of more than one accounting period and are normally used in the operation of a business. One of the major characteristic of plant assets is that they are often used in operations.

They are known also as resources that has physical substance, used mainly in the operations of a business and it is not intended for sale to customers.

Plant assets are also called property, plant, equipment; plant and equipment; and fixed assets.

It is also discard (done away with) if it is not useful anymore to the company, and it has no market value.

Aber Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts: Acquisition of land $15000 Surveys and legal fees 600 Land clearing 200 Fencing 1000 Install lighting and signage 860 What amount should be recorded as the cost of land in the books of the corporation

Answers

Answer: $15,800

Explanation:

When it comes to fixed assets like land, all costs that were necessary to acquire the land and to get it ready for use are capitalized - included in the cost of the fixed assets.

Cost of land = Acquisition cost + Surveys and legal fees + Land clearing to get it ready for use

= 15,000 + 600 + 200

= $15,800

Conflicts of interest a. have become less frequent today. b. always involve personal financial gain. c. are morally worrisome only when the employee acts to the detriment of the company. d. occur when employees have special or private interests that are substantial enough to interfere with their job duties.

Answers

Answer:

D

Explanation:

Conflicts of interest occur when employees have special or private interests that are substantial enough to interfere with their job duties

For example, imagine that there is an analyst who works in a firm. He comes across material non public information that the value of the shares of the company is about to plummet. This analyst has shares in the company.

A conflict of interest arises, he can either trade his shares and engage in insider trading or not trade his shares so as to protect the integrity of the capital market

the ethical step is not to trade

Gillian reprimands an employee in front of his peers for speaking out of turn during a sales meeting. Which of the following types of reinforcement does this scenario demonstrate?

a. Extinction
b. Negative reinforcement
c. Positive reinforcement
d. Positive punishment

Answers

Answer:

The correct answer is the option B: Negative reinforcement.

Explanation:

To begin with, in the field of behavioral psychology and business management the concept known as "Reinforcement" refers to the action or process of changing or keeping someone's behavior by the action of having an specific reaction that will be negative or positive accepted by the individual whose behavior we are looking to change or maintain. Therefore that the reinforcement is followed by a particular stimulus that the individual normally has when making the action that we want to change or keep.

The negative reinforcement refers to the process of producing a consequence with the purpose of avoiding or trying to stop certain stimulus so that the individual will stop that behavior in order to avoid the consequence.

As a customer acquisition technique, events: a. Are considered mostly ineffective compared to mobile advertising or social media promotions b. Tend to be used independently of other acquisition techniques c. Can happen in an online environment d. Are primarily an offline channel

Answers

Answer: a. Are considered mostly ineffective compared to mobile advertising or social media promotions.

Explanation:

Customer acquisition techniques refers to the strategies that are helps in the identification of the potential leads which are then converted into active customers. Such techniques include personalized offer design, automated email marketing etc.

As a customer acquisition technique, events are considered mostly ineffective compared to mobile advertising or social media promotions.

what is Social responsibilities in business

Answers

Answer:

Social responsibility in business, also known as corporate social responsibility (CSR), pertains to people and organizations behaving and conducting business ethically and with sensitivity towards social, cultural, economic, and environmental issues.

Coke and Pepsi are examples of

Answers

Coke and Pepsi are examples of soft drinks.

Hope this helps!

Have a great day!

các yếu tố môi trường ảnh hưởng đến ?
A: sự tồn tại của tổ chức
B: sự phát triển của tổ chức
C: kết quả hoạt động tổ chức
D: tất cả các ý

Answers

Answer:

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Explanation:

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Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,000, and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.

1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 55% of sales.

Required:
Compute the net income to be earned under each alternative. Which course of action will produce the higher net income?

Answers

Answer:

Yams Company

Alternative 1: Increasing the selling price by 10% with no change in total variable costs or units sold will produce the higher net income.

Explanation:

a) Data and Calculations:

                                                          Total         Unit   Quantity

Sales for the month of August = $400,000     $80        5,000

Variable costs =                            $240,000       48        5,000

Fixed costs =                                  $90,000

Alternatives to increase net income:

                                       Alternative 1        Alternative 2

Sales revenue                  $440,000            $400,000

Variable costs                    240,000              220,000

Contribution margin       $200,000             $180,000

Fixed Costs                         90,000                 90,000

Net income                      $110,000               $90,000

Which points on the production possibilities curve show a level of production
that would be achievable only through further growth in the company?


A. Points B and C
B. Points A and C
C. Points B and D
O D. Points A and B

Answers

Answer:

Most likely d and b

Explanation:

d is the best production so it should be in one of the answers and it is only with b so therfor it should be with d and b

Answer:

points a and c

Explanation:

Assume you just deposited $1,000 into a bank CD account with one year until maturity. The interest rate on your deposit is 8% and inflation is expected to be 4% over the next year. a. How much money will you have in your bank account at the end of one year

Answers

Answer:

amount after 1 year = $1080

Explanation:

given data

deposited = $1,000

interest rate = 8% = 0.08

inflation rate =  4%

solution

we get here amount after one year with 8% of interest rate will become

amount after 1 year = deposited  × [tex]( 1 + rate )^{time}[/tex]  ................1

put here value

amount after 1 year = $1000 × ( 1 + 0.08)

amount after 1 year = $1080

Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world. This market was not perfectly competitive because this situation violated the:

Answers

Answer:

price-taking assumption.

free entry assumption.

Explanation:

A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:

- products are nearly identical

- all the firms are price takers. That is they are not able to determine price independently

- buyer knowledge of information about products is perfect and available to all

- free entry and exit to the market

- resources are perfectly mobile

In the given scenario above two of these rules are not obeyed.

Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.

So they determine the price ( they are not price takers)

Also since they own nearly all the aluminium reserves there is no free entry for new firms

Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Cash is $9,100 The starting balance of Inventory is $4,800 The starting balance of Retained Earnings is $24,700 1. Sell product for $30 in cash with historical cost of $24 2. Sell, deliver, and receive payment of $40 for service 3. Consume good or service and pay expense of $2 What is the final amount in Retained Earnings

Answers

Answer: $24,744

Explanation:

Final amount in retained earnings;

= Starting balance + Net income

Net income:

= Sales - Cost of good sold + Service revenue - Expense

= 30 - 24 + 40 - 2

= $44

Final amount in retained earnings:

= 24,700 + 44

= $24,744

Other Questions
When a Select Case statement executes, the value of the test expression is compared with the values that follow each of the _______ keywords. A Soundex code is a four-character string in the form of an initial letter followed by three digits.a. Trueb. False John is a typical student. He usually on the lessons.A.pays attentionB.concentratesC.does D.understands Write a program that asks the user for the name of their dog, and then generates a fake DNA background report on the pet dog. It should assign a random percentage to 5 dog breeds (that should add up to 100%!) which are renewable resources? silver, oxygen, evergreen trees, dirt, trout, coal, coal, tomatoes, water If 0.8 g of gas Z occupies 0.56 dm at s.1.p., calculate its relative molecular mass. (Molar volume of gas is 22.4 dm.) your body's internal feedback loops work by responding to???A) information from the external environmentB) hormones from the pineal glandC) changes in the internal environmentD) messages sent by the brain to body organs Hello, stuck on 1 problem:4/8 - 3/4 = ? What is 5% of 483759???? If my saving x$ grows 10% every year how much will I have in:1 year2 year5 year Can someone please help name the compound: RuO What did Elizabeth Fry do ? 15) Three primary activities of a program are: A) Variables, Operators, and Key Words B) Lines, Statements, and Punctuation C) Input, Processing, and Output D) Integer, Floating-point and Character E) None of the above The Science Club arranged a trip to Smithsonian. Only 2/3 of the members were able to attend, which left one seat empty on the 25-passenger bus. How many members does the Science Club have? Assume you have 1000 shares of Microsoft, and they want to buy back their shares, would you sell your shares to them? OR you would wait for the divided? Furthermore, WHY Microsoft is repurchasing their shares? Likewise, if you have PKR 1 million, to diversify risk, how you would make different portfolios for this amount? Another word for negative The father of a young child whose life was saved by doctors at a hospital emergency room called the president of the hospital and told her that he will donate $50,000 to the hospital, payable in 90 days, in consideration of the doctors' saving his child's life. The president recognized the father's name as a wealthy philanthropist who had donated generously to other worthy causes, and accepted the offer. The president promptly informed the hospital's board of directors of the father's offer and her acceptance of the offer. The board approved the purchase of a new respirator for $50,000 and authorized the president to enter into a written contract with a medical devices company to make the purchase, which she did. Once the child recovered, the father changed his mind and refused to give the hospital the $50,000. If the hospital sues the father, what would the hospital's best theory be to recover the $50,000 Create a list of three events related to westward expansion that affected African Americans. Review the lesson for compromises and consequences to help make your list. Events you should consider include the following:Missouri CompromiseCompromise of 1850Kansas-Nebraska ActDred Scott v. SandfordFugitive Slave ActNat Turner's RebellionBleeding KansasHarpers FerryExplain the impact of each of the three selected events. Be sure to include how each event resulted in changes for African Americans. Write a method rearrange that takes a queue of integers as a parameter and rearranges the order of the values so that all of the even values appear before the odd values and that otherwise preserves the original order of the list. For example, suppose a queue called q stores this sequence of values: front [3, 5, 4, 17, 6, 83, 1, 84, 16, 37] back Then the call of rearrange(q); should rearrange the queue to store the following sequence of values: front [4, 6, 84, 16, 3, 5, 17, 83, 1, 37] back Notice that all of the evens appear at the front of the queue followed by the odds and that the order of the evens is the same as in the original list and the order of the odds is the same as in the original list. You may use one stack as auxiliary storage.