(Quantitative) A one-year bond has an annual coupon of 6% and a face value of $1,000. What will be the rate of return of an investor who buys the bond at issuance for $963.75 and holds it to maturity?
Answers
To calculate the rate of return for an investor who buys a one-year bond at issuance and holds it to maturity, we need to consider the coupon payments received and the gain or loss from the difference between the purchase price and the face value.
Given:
Annual coupon: 6% of $1,000 = $60
Face value: $1,000
Purchase price: $963.75
The total return from the bond investment consists of two components:
Coupon Payments: The investor will receive a coupon payment of $60 at the end of the year.
Gain or Loss from Difference in Purchase Price and Face Value: The difference between the purchase price and the face value represents either a gain or a loss.
Face Value - Purchase Price = $1,000 - $963.75 = $36.25
Since the bond was purchased at a discount (below the face value), the investor will experience a gain of $36.25 when the bond matures.
The total return is the sum of the coupon payments and the gain:
Total Return = Coupon Payments + Gain or Loss
Total Return = $60 + $36.25
Total Return = $96.25
To calculate the rate of return, we divide the total return by the initial investment (purchase price) and express it as a percentage:
Rate of Return = (Total Return / Purchase Price) x 100
Rate of Return = ($96.25 / $963.75) x 100
Rate of Return ≈ 10%
Therefore, the rate of return for the investor who buys the bond at issuance for $963.75 and holds it to maturity is approximately 10%.
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Related Questions
What are 20 things to do at home when I have nothing to do and have done all my online school?
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1. Eat a carrot
2. Vomit because carrots are disgusting
3. Play video games DUHH
4. Don’t waste your time on brainly
to best respond to rumors or misinformation in the marketplace, what social media strategy would be most effective?
Answers
To best respond to rumors or misinformation in the marketplace one should build trust through authentic messaging.
How to prevent misinformation?To find mentions of your brand, workers, and company name on social media, use a monitoring tool. Be mindful that someone unrelated to your organisation may set up a fake account using your company's name or a name that sounds similar and post offensive or fraudulent content under your company's name. As a result, you should also keep an eye out for this problem.
Act immediately to address the situation if you discover that individuals are generating phoney accounts or incorrect information about your business. For instance, Starbucks quickly issued statements stating that it was not, in fact, sponsoring a fake Starbucks Dreamer Day in which Starbucks purportedly offered undocumented Americans 40% off any item on the menu.
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the hat industry has a lerner index of 0.33. based on this information, a firm with marginal cost of $10 should charge a price of
Answers
Lerner in 1934, the Lerner index is expressed in the following formula: Lerner index = P - MCP where P represents the price of the true set by using the firm and MC represents the firm's marginal cost. Essentially, the index measures the proportion markup that a firm is capable to charge over its marginal cost.
What does a Lerner index of 1 mean?pure monopoly
The Lerner index is an economics measure to gauge monopoly. It determines the relationship between a commodity's promoting charge and marginal value of production. It is denoted with the aid of 'L. ' When 'L = 0', it signifies best competition; similarly when 'L = 1,' it shows a pure monopoly.
Can Lerner index be larger than 1?Image end result for the hat enterprise has a lerner index of 0.33. primarily based on this information, a association with marginal fee of $10 must charge a rate of
The Lerner index can by no means be greater than one. As a result, if the company is maximizing profit, the elasticity of demand facing it can in no way be less than one in magnitude (|E|<1).
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Which of the following would NOT be considered a hazardous
work for a minor?
O Truck driving
O Excavating
O Life guarding
Handling explosives
Answers
Answer:
I would have to choose Life guarding.
is it hard to get a job at chik fil a? kinda stupid question ik, I just really need money. if so any recommendations?
Answers
Answer: Maybe you can try getting a job at starbucks, mcdonalds, five below, etc. It depends how old are you.
one difference between periodic and perpetual inventory systems is:
Answers
The main difference between periodic and perpetual inventory systems is the frequency of inventory updates. In a periodic system, inventory counts are only done periodically, usually at the end of each accounting period.
In contrast, a perpetual system continuously updates inventory counts through the use of software and tracking systems, allowing for real-time information on inventory levels.
One difference between periodic and perpetual inventory systems is that periodic inventory systems involve updating the inventory records at specific intervals (such as weekly or monthly), whereas perpetual inventory systems continuously update the inventory records in real-time as transactions occur.
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melinda earned $50,000 and paid taxes of $12,500. she would have paid $35 on the next $100 she made. compute her average and marginal tax brackets.
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Melinda earned $50,000 and paid taxes of $12,500. If she would have paid $35 on the next $100 she made, we can determine her average and marginal tax brackets as follows:A. Average Tax Bracket Average tax bracket is the percentage of your income that you pay in taxes. It is determined by dividing the total amount of taxes paid by the total income earned.
The formula for computing the average tax bracket is given as:Average Tax Bracket = Total Tax Paid / Total Income Earned * 100. Since Melinda earned $50,000 and paid taxes of $12,500, her average tax bracket can be determined as follows:Average Tax Bracket = Total Tax Paid / Total Income Earned * 100 Average Tax Bracket = 12,500 / 50,000 * 100 Average Tax Bracket = 25%Thus, Melinda's average tax bracket is 25%.B. Marginal Tax Bracket. The marginal tax bracket is the percentage of tax that is paid on the next dollar of income earned. It is the tax rate that is applied to the next dollar of income earned. The marginal tax bracket is determined by looking at the tax bracket chart and determining the tax rate for the next dollar of income earned.Since Melinda would have paid $35 on the next $100 she made, we can determine her marginal tax bracket as follows:Marginal Tax Bracket = Tax Paid on Next Dollar / Increase in Income * 100 Marginal Tax Bracket = 35 / 100 * 100 Marginal Tax Bracket = 35%Thus, Melinda's marginal tax bracket is 35%.
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Define the terms:
- Scarcity
- Choice
- Opportunity cost
- Efficiency
- Inefficiency
Answers
Answer:
Scarcity: In short supply of
Choice: Making a decision
Opportunity Cost: The loss of one aspect of a decision with the benefit of another
Efficiency: Being efficient and accurate as well as reliable
Inefficiency: Not being effective and wasting resources or time
what is the relationship between beginning cash balance and ending cash balance for the current year
Answers
Answer:
While the cash flow statement shows cash coming in and going out, the balance sheet shows the assets and liabilities that result, in part, from the activities on the cash flow statement.
Explanation:
Please give the brainliest.
) The following costs were incurred in May: Direct materials $ 41,000 Direct labor $ 13,000 Manufacturing overhead $ 46,000 Selling expenses $ 18,000 Administrative expenses $ 15,000 Conversion costs during the month totaled: A) $54,000 B) $133,000 C) $59,000 D) $87,000
Answers
The following costs were incurred in May: Direct materials $ 41,000 Direct labor $ 13,000 Manufacturing overhead $ 46,000 Selling expenses $ 18,000 Administrative expenses $ 15,000 Conversion costs during the month totaled IS $87,000
Option D) $87,000 is the correct answer.
Conversion costs refer to the sum of direct labor and manufacturing overhead costs.
In this case, direct labor cost is $13,000 and manufacturing overhead cost is $46,000, so the total conversion cost is:
$13,000 + $46,000 = $59,000
Therefore, option C is incorrect.
To calculate the total manufacturing cost, we need to add the direct materials cost to the conversion cost:
$41,000 + $59,000 = $100,000
This tells us that $100,000 was spent on producing the goods during the month.
Selling and administrative expenses are not included in manufacturing cost.
Therefore, the correct answer is:
Conversion costs = Direct labor + Manufacturing overhead = $13,000 + $46,000 = $59,000
Total manufacturing cost = Direct materials + Conversion costs = $41,000 + $59,000 = $100,000
So, option D) $87,000 is the correct answer.
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To maximize profit, the perfectly competitive firm charges a price equal to __________ while the monopolist charges a price __________.
Answers
To maximize profit, the perfectly competitive firm charges a price equal to the marginal cost while the monopolist charges a price greater than the marginal cost.
The monopolist will select the profit-maximizing level of output where MR = MC, and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.
In a monopolistically competitive market, the rule for maximizing profit is to set MR = MC and the price is higher than marginal revenue, not equal to it because the demand curve is downward sloping.
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Write an argumentative essay for or against setting long-term goals to land a dream job.
PLEASE HELP QUICK AND PLEASE DONT ANSWER IF YOUR NOT GOING TO DO THE ESSAY
Answers
Answer:
YOU SHOUKD PURUSE YOUR DREAMS GIRLL
Explanation:
Do you agree or disagree with the argument that crime seriousness and prior criminal record are not necessarily legally relevant variables? What are some other variables that should be taken into account? What do you feel are the most important factors that should be used when sentencing?
Answers
I agree to this argument.
Arguments that the severity of the offence and the defendant's prior criminal record are not inherently legally pertinent variables are frequently brought up in discussions about the equity and efficacy of sentencing.
Socioeconomic origin, mental health, and personal history contribute to a deeper understanding of the underlying causes of criminal behaviour and the potential for rehabilitation.
Important factors include the willingness to participate in rehabilitation programmes, the availability of support networks, and the likelihood of successful reintegration into society.
The appropriate sentence may be determined by weighing factors such as the nature of the offence, the likelihood of recidivism, and the need to protect society.
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Which of the following best describes a liability?
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In Credit Risk Plus O With uncertainty about default, default correlation arises because all companies have the same default rate A typical assumption is that the expected number of defaults has a lognormal distribution A typical assumption is that the expected number of defaults has a gamma distribution Without uncertainty about default, there is no default correlation
Answers
The statement "Without uncertainty about default, there is no default correlation" is correct. Default correlation refers to the degree to which the defaults of different companies or entities are related or dependent on each other.
In a scenario where there is no uncertainty about default, meaning that the default events are certain and known, there would be no default correlation because the default outcomes are predetermined and not subject to random variation. Default correlation arises when there is uncertainty about default because the default events are not certain, and the probability of default can vary across different entities. In credit risk analysis, default correlation is an important consideration as it measures the extent to which defaults tend to occur simultaneously or in a correlated manner among different borrowers or issuers.
It is worth noting that the assumptions about the distribution of expected number of defaults, such as lognormal or gamma distribution, are related to modeling approaches used to analyze and quantify credit risk. These assumptions help in capturing the uncertainty and variability in default outcomes and allow for the estimation of default probabilities, default correlations, and other risk measures.
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most accurately describes what a bond is?
Answers
Answer:
A bond is a financial instrument that represents a debt obligation issued by an entity, typically a corporation, government, or municipality, to raise capital.
Explanation:
. When an entity issues a bond, it is essentially borrowing money from investors who purchase the bonds. Bonds are also known as fixed income securities because they generally pay periodic interest payments, called coupons, to bondholders until the bond matures, at which point the face value of the bond is repaid to the bondholder.
Bonds have specific terms and features, including the principal amount (face value) of the bond, the interest rate (coupon rate) at which interest is paid, the maturity date when the bond matures and the face value is repaid, and the issuer's credit rating, which reflects the creditworthiness of the entity issuing the bond. Bonds can have different types of interest rates, such as fixed or floating rates, and may have various levels of risk associated with them, depending on the creditworthiness of the issuer and prevailing market conditions.
Bonds are bought and sold in financial markets, and their prices and yields can fluctuate based on various factors, including changes in interest rates, market conditions, and the creditworthiness of the issuer. Bonds are commonly used by investors as a way to generate income, diversify their investment portfolios, and manage risk. They are also used by issuers as a means of raising capital to finance projects, operations, or other financial needs.
multiple answers
These statements are true regarding association with a headhunter or recruiter:
1)referring other hard workers is appreciated by headhunters and recruiters
2) headhunters and recruiters work for you
3) instead of burdening your headhunter or recruiter, you should save time and contact an employer directly
4) headhunters and recruiters work for the employer
Answers
Headhunters and the recruiters both of them work for the employer of the company.
Option fourth is the correct answer.
Who is an employer?An employer is an individual who controls and manages the affairs of a company.
During the recruitment process, the recruiters hired individuals who are new to employment, that is, the freshers. In contrast, the headhunters hire those employees who already have an experience in the concerned field.
Therefore, the employer of the company is associated with both the headhunters and the recruiters.
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TRUE / FALSE. Some intelligent agent systems are capable of learning from experience and adjusting their behavior. O True O False
Answers
The given statement that Some intelligent agent systems are capable of learning from experience and adjusting their behavior is True.
Intelligent agent systems are designed to perform tasks autonomously by making decisions and taking actions based on their understanding of the environment. Learning from experience is an essential capability for an intelligent agent to improve its performance over time.
These systems can incorporate machine learning techniques, such as reinforcement learning or deep learning, to acquire knowledge from their interactions with the environment.
Through repeated trials and feedback, they can learn to associate certain actions with positive or negative outcomes, allowing them to adjust their behavior accordingly.
For example, a self-driving car can learn from its driving experiences by analyzing various scenarios, road conditions, and responses to different situations. It can then adjust its driving behavior, such as speed or lane positioning, to improve safety and efficiency.
By learning from experience, intelligent agent systems can adapt to changing environments, optimize their decision-making process, and enhance their overall performance.
This capability is crucial in various fields, including robotics, autonomous systems, and artificial intelligence applications, enabling these systems to evolve and improve over time.
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Daniel, age 38, is single and has the following income and expenses in 2021: Salary income $135,000 Net rent income 5,500 Dividend income 1,100 Payment of alimony (divorce finalized in March 2019) 14,000 Mortgage interest on residence 7,000 Property tax on residence 2,600 Contribution to traditional IRA (assume the amount is fully deductible) 3,000 Contribution to United Church 1,900 Loss on the sale of real estate (held for investment) 700 Medical expenses 4,250 State income tax 1,200 Federal income tax 6,500 Daniel's standard deduction for 2021 is $12,550. Question Content Area a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Payment of alimony (divorce finalized in March 2019) ? Mortgage interest on residence ? Property tax on residence ? Contribution to traditional IRA (assume the amount is fully deductible) ? Contribution to United Church ? Loss on the sale of real estate (held for investment) ? Medical expenses ? State income tax ? Federal income tax? What is Daniel's gross income and his AGI? Gross income: $ ? AGI: $ ?
Answers
Daniel's gross income is $141,600, and his AGI is $138,600.
A. Classifying expenses:
1. Payment of alimony (divorce finalized in March 2019) - Not deductible (due to changes in tax law starting 2019).
2. Mortgage interest on residence - Deductible from AGI.
3. Property tax on residence - Deductible from AGI.
4. Contribution to traditional IRA (assume the amount is fully deductible) - Deductible for AGI.
5. Contribution to United Church - Deductible from AGI.
6. Loss on the sale of real estate (held for investment) - Deductible from AGI.
7. Medical expenses - Deductible from AGI (subject to 7.5% AGI threshold).
8. State income tax - Deductible from AGI.
9. Federal income tax - Not deductible.
Gross income calculation:
Salary income: $135,000
Net rent income: $5,500
Dividend income: $1,100
Total gross income: $135,000 + $5,500 + $1,100 = $141,600
AGI calculation:
Gross income: $141,600
Deductible for AGI (traditional IRA contribution): $3,000
Adjusted Gross Income (AGI): $141,600 - $3,000 = $138,600
So, Daniel's gross income is $141,600, and his AGI is $138,600.
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Coach Sieb Has a treadmill desk. Walking on the treadmill will break down her triglyceride Levels 90% faster what is the percent that it breaks down while sitting
Answers
Answer:
0%
Explanation:
Base on the scenario been described in the question, where we saw coach Seib has 90% faster breaking her triglyceride Levels while working, when sitting, she has a 0% of breaking her triglyceride Levels because no movement, there will be no breakdown in the triglyceride Levels
Davis is planning to buy a bike. He has the full amount in his bank account. He does not want to pay any interest on his purchase. Which option(s) can Davis use when making the purchase
Answers
Answer:
C
Explanation:
(whoops sorry this one's actually maths)
Marie goes to the clothing store. Her purchases equal $89.25. The sales tax is 8%. How much tax does she pay?
A $7.14
B $7.86
C $71.40
D $78.60
Answers
Answer:
she pays $ 7.14 tax ...
Explanation:
tax = tax rate × purchase cost
= 8% × $89.25
= $ 7.14
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
what significance level would indicate that a researcher is 5 percent sure that they would get the result they found if the null hypothesis were true?
A. 0.5
B.1
C.9
Answers
None of the given options accurately represents the significance level of 5 percent.
The significance level, also known as the alpha level, is the threshold set by the researcher to determine the level of confidence required to reject the null hypothesis in a hypothesis test. It represents the probability of rejecting the null hypothesis when it is actually true.
In the given options, the significance level of 5 percent would correspond to:
A. 0.5: This value is not equal to 5 percent and does not represent the desired level of confidence.
B. 1: This value is not less than 5 percent and does not represent the desired level of confidence.
C. 9: This value is greater than 5 percent and does not represent the desired level of confidence.
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what type of government action is part of fical policy
Answers
if inflation rises unexpectedly by 5%, would a state government that had recently borrowed money to pay for a new highway benefit or lose? g
Answers
A state government that has borrowed money to pay for a new roadway will benefit if inflation unexpectedly climbs by 5%. The state would gain because it would pay back the loan with less valuable currency than it borrowed.
A rise in the cost of goods and services over time that reduces the buying power of money is known as inflation. The state government would gain from an unanticipated surge in inflation of 5% because it would boost its tax revenue as a result of inflation and because it would pay back the debt with less valuable dollars than it had borrowed.
The price level is the mean of the current prices for all the goods and services produced within an economy. The price index's percentage change from the preceding period's index over a given period is known as the inflation rate. It is typically calculated once a year. While the rate of inflation is the rate of growth of the price level, price levels are made up of index numbers. Prices for different goods and services are simply referred to as price levels, but the percentage change in price levels over time is referred to as the rate of inflation.
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5. The price of a laptop computer dropped from $1,800 to $1,200. What was the percent of
decrease?
a. 30%
b. 1/3
c. 33.33%
d. 333
Answers
Answer:
c. 33.33%
Explanation:
The original price was $1,800
The price dropped to $1,200
the drop in price was $1,800 - $1200 = $600
The percentage drop will be $600/$1800 x 100
=0.33333 x 100
=33.33%
Police are investigating the site of a convenience store robbery. The glass door was
broken, and it looks as if several packages of cigarettes are missing from behind the
counter. One police officer notices a man walking past the store and gets an odd
feeling about him. He stops the man and insists on searching his pockets. Inside the
man's pockets, police find several packs of cigarettes. They arrest the man and
charge him with the crime. Unfortunately, the judge throws out the charges. What is
MOST likely the judge's reason for dismissal?
A-The man is under 18 years old.
B-The man did not have money to post bail.
C-The policeman did not have probable cause to search the man.
D-The policeman did not have enough evidence that the man was the robber.
Answers
The MOST likely judge's reason for dismissal is the policeman did not have enough evidence that the man was the robber. Thus the correct option is D.
What is Robbery?Theft or robbery is defined as the stealing of someone else's property without their permission and using force or a threat of force that exhibits fear in them to perform any action against them.
To prove a crime against someone requires one to submit enough evidence which helps to establish the claim as the justice system is based on evidence not on arguments.
In the given case, police found the activity of the men suspicious as they found cigarette packets from him. There is no evidence that he has stolen the cigarette packets might be possible he has purchased them.
So due to a lack of evidence against the person the Judge dismissal the case. Therefore, option D is appropriate.
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Do you think you can live 30 days with $1,000? Explain
Answers
Answer:
Well, what's the situation do I have a place to stay? or am I just out in the wild? But anyway,
yes, I do think you can survive if you use the money wisely along with using your surroundings to your advantage.
Explanation:
George has a monthly income gross of 3500 and his monthly debt payments are 325 car payments 290 student loan payment 930 mortgage payment and 400 in credit card payment what is the total debt to income ratio rounded to the nearest percent
Answers
A standard rule of thumb is to preserve your ordinary debt-to-income ratio at or under 43%.
What debt-to-income ratio is too high?Debt-to-income ratio is your monthly debt obligations compared to your gross month-to-month income (before taxes), expressed as a percentage. A excellent debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is regarded to be too lots debt.
What is the easiest debt-to-income ratio for a mortgage?Ideal debt-to-income ratio for a mortgage
In phrases of your front-end and back-end ratios, lenders normally seem to be for the best front-end ratio to be no greater than 28 percent, and the back-end ratio, together with all month-to-month debts, to be no greater than 36 percent.
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