Dmitri bought a $1,000 bond at par value with a coupon rate of 5 percent. He determines the yield by dividing the amount of interest he earns by the price.

a. How much interest would he earn in the first year and what would be the yield?

b. How much interest would he earn in the first year and what would be the yield if he had paid $950 for the bond? What would be the interest and yield if he paid $1,050?

This is not a multiple choice question, please answer both parts if you can.

Answers

Answer 1

The interest earned is  5%.

Interest / Price is 4.76%

How to solve for the interest and the price

Interest can be defined as the cost of borrowing. That is, it is the additional amount that the borrower pays to the lender for a principal sum of money that was received.

How to solve the yield on the bond

Part A

Yield = Interest / Price = $50 / $1,000 = 0.05 or 5%

So, the yield on the bond is 5%.

Part B

Yield = Interest / Price = $50 / $950 = 0.0526 or 5.26%

If Dmitri paid $1,050 for the bond, the yield would be lower

Yield = Interest / Price = $50 / $1,050 = 0.0476 or 4.76%

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Related Questions

A change in tastes or fashions can impact..
A. Both Supply and Demand
B. Supply
C. Neither Supply nor Demand

Answers

In my opinion a change in tastes and fashion can impact both supply and demand. This is so because if the consumers doesn’t like the product they would not buy it, this affects the demand of the product. If the suppliers aren’t getting enough demand for the product they won’t supply.

Isabella and Mateo made an incredible amount of money this year, and their tax lawyer was able to use many deductions to reduce their adjusted gross income by millions of dollars. However, despite all of his attempts to get them out of paying as many taxes, they still had to pay some. Which type of tax MOST likely ensured that Isabella and Mateo were required to pay some taxes?

A. withholding tax
B. earned-income tax
C. alternative minimum tax
D. sales tax

Answers

Answer:

C. alternative minimum tax

Explanation:

The correct option is C.

What is an alternative minimum tax in simple words?

AMT is a tax levied on 'adjusted total income' in an FY wherein tax on normal income is lower than AMT on Adjusted total income. So, irrespective of normal tax, AMT has to be paid by taxpayers to whom AMT provisions apply.

Who pays the alternative minimum tax?

The AMT increased taxes for 23.3 percent of households with “expanded cash income” (a broad measure of income) between $200,000 and $500,000, 63.8 percent of those with incomes between $500,000 and $1 million, and 24.2 percent of households with incomes greater than $1 million.

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What are the functions of money?
A. A measure of debt
B. A storehouse of value
C. A form of bartering
D. A unit of account
E. A medium of exchange

Answers

Answer:

E,C, and D, and B

Explanation:

The functions of money are- a measure of debt, a storehouse of value, a unit of account, and a medium of exchange. Thus all the options except C are the functions of money.

What is money?

Money is any item or verifiable record that is widely accepted in a particular country or socio-economic context as payment for goods and services and repayment of debts, such as taxes.

Money serves as a medium of exchange, a unit of account, a store of value, and, in some cases, a standard of deferred payment. Money was historically an emerging market phenomenon with intrinsic commodity value.

Its value is derived as a result of social convention, having been declared legal tender by a government or regulatory entity; that is, it must be accepted as a form of payment within the borders of the country, for "all debts, public and private."

Therefore, options A, B,D, and E are the functions of money.

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Ayman has a credit card with a balance of $4750 CAD and an annual interest of 21.5% compounded
monthly. He plans on paying off the loan completely in two years using monthly payments. What is the
total amount of interest he will pay once the card is paid off?
#1 $128.03
#2 $1136.00
#3 $4878.03
#4 $5886.00

Answers

#4 $5886.00 is the answer

ABC Book Company has $1 million in cash, $8 million worth of property, and $50,000 worth of equipment and furniture. What is the total value of ABC Book Company’s assets?

Select One:
a. $9,050,000
b. $1,000,000
c. $9,000,000
d. $50,000

Answers

Answer:

a. $9,050,000

Explanation:

You just need to add that all together

Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:

Answers

Answer:

Saving plan

Explanation:

The saving plan are the life insurance plans that offers the various opportunity to an individual in order save and accumulated the fund for the upcoming future

Since Troy has $50 a month and the same is transferred electronically from his checking account to his saving account so automatically he saves each month

Therefore the same represent the saving plan

do i have to pay anything when i create an account?

Answers

Answer:

no you don't lol free points thi

Answer:

no

Explanation:

because this app is free

2 The link that distributes a product from a supplier to the consumer is afn)
A. supply chain
B. shipping center
C. employee chain.
D. office hub.

Answers

The answer to this question is D

What was the biggest challenge to getting the airplane to fly

Answers

Answer:by usin rocket flue that’s what my 8th grade teacher said -Tokyo

Explanation:

Answer:

Wings with enough surface area and the proper curve to provide lift.

A means to control the direction of the aircraft's movement.

A lightweight source of power.

Explanation:

Is it wright brothers???

The percentage change in prices over time. This is a key indicator of the cost of
O Growth
O Recession
O Inflation Rate
O Unemployment Rate

Answers

ANSWER: Inflation Rate


I would say the third one

If an investor purchases 500 shares of an aggressive growth stock, which strategy would limit his downside risk

Answers

Answer:

B)Buying 5 puts on the stock

Explanation:

The put provides the investor right to sell the stock at a strike price or set price for a time period and protect against the losses that lies below the strike price.

Also buying calls would protect the short position of the stock. Now in the case when the customer has the long stock so the call purchase on that security would rise the leverage and risk. Now if the put option is written so it develops a liability to purchase more stock at the set price that increased the down side risk

Therefore the correct option is B

Underwriters have been taking indications of interest for shares of an upcoming new issue. Indications of interest are

Answers

Answer: Indications of interest are underwritten expression that shows a conditional, non-binding interest in buying a security that is currently in registration and awaiting approval

Explanation:

Indications of interest are underwritten expression that shows a conditional, non-binding interest in buying a security that is currently in registration and awaiting approval by the board known as Securities and Exchange commission (SEC). The broker of the investor is required to provide a preliminary prospectus

Match the questions below with the appropriate person, company or organization that would most likely ask them. There can be more than one user per question.

Should I buy into this business?
Should I sell this business?
Is this business well run?
Is this company growing satisfactorily?
Can the business afford to pay more to its employees?
Is the business paying the proper amount of income tax?

Select answers from the following (a selection can be used more than once)
An absentee owner
A potential investor
A banker
A labour union
The government
An owner

Answers

Explanation:

i don't know the answer but also I do my best!!!

please i need an urgent answer what is feeding regime​

Answers

Answer: A plan that specifies a diet, amount and schedule of nutritional

A real estate professional specializes in helping both buyers and sellers with the necessary paperwork involved in transferring property. Although not an agent of either party, the real estate professional may not disclose either party's confidential information to the other. The real estate professional is BEST described as

Answers

Answer:

a transactional broker.

Explanation:

A disclosure is a legally binding agreement between the buyer and seller of a property, wherein the seller highlights all the information or details they know about the property for the purpose of enlightening and informing the buyer. It contains informations such as legal encumbrance, structural flaw, size of property etc.

In this scenario, a real estate professional specializes in helping both buyers and sellers with the necessary paperwork involved in transferring property. Although not an agent of either party, the real estate professional may not disclose either party's confidential information to the other. Thus, the real estate professional is best described as a transactional broker who is licensed to practice within the state.

Explain one disadvantage of selling shares as a source of raising finance in a private limited company.

Answers

Answer:

see below

Explanation:

By shares are sold ,the new shareholders become  part owners in the company. They get rights to vote, and share in the profits of the business. The right to vote influences who becomes a member to the board of directors.

By shelling shares, the founders of business gives away their controlling rights. Investors may choose directors that oppose founders. In some circumstances, investors kicked out founders  from the business.

Unpredictable policies can result in conflict because employees may ______.
a.
Believe that there is a double standard
b.
Have to guess at what the policies actually are
c.
Give out information that is incorrect
d.
All of the above

Answers

Answer:

All of the above

Explanation:

D.

Answer:

D

Explanation:

Above

Managerial economist estimates the price-quantity relationship for Textile Company to be p= 40-4q a. At what output rate demand is unitary elastic? b. Over what range of output demand is elastic? c. Over what ranges of the output of demand are inelastic?

Answers

Answer:

So unit elastic at q = 5

inelastic above 5

and elastic below 5

Explanation:

The elasticity is determianted by the marginal revenue.

Our first goal is to find the marginal revenue function

p = 40 - 4q

total revenue(TR)  =  quantity times price

q x (40 - 4q) = -4q^2 +40q

marginal revenue TR(q)/d(q)  = -8q + 40

Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.

It will be inelastic below zero and elastic above zero

MR will be zero when q = 5

-8(5) + 40 = 0

As quantity increases the demand will be inelastic

while

A permanent employee works in the same position for his or her entire career.
a. True
b. False

Answers

Answer:

false

Explanation:

People are willing to pay a higher price if they believe that supplies are

A. fluctuating
B. endless
C. increasing
D. limited

Answers

I think that D would be the right answer because if people knew that important things are limited they would pay a higher price.

Hope this helps! :)

Answer:

D.Limited

Explanation:

If you're working with potential buyers who are currently renting, why should you ask when their rental contract is up

Answers

Answer: b. It will help you establish a purchase time frame.

Explanation:

Considering that these potential buyers are renting at the moment, it would make sense that they would only be interested in buying after their rental contract is up.

Asking them when that contract is up will therefore give you a better picture of the time frame it would take for them to purchase the property that you want to sell.

Use what you have learned about filing income taxes to complete these sentences.
Citizens file income taxes to ensure that they will receive a Vif they paid too much in taxes throughout the
year.
Employers supply a v to help citizens file their tax returns,
Taxes returns can by filed either by mail or

Answers

Answer:

1) Refund

2) W-2

3) Online

Explanation:

Citizens file income taxes to ensure that they will receive a Refund if they paid too much in taxes throughout the year.

Employers supply a W-2 to help citizens file their tax returns.

Taxes returns can by filed either by mail or Online.

I've completed the following sentences by using what I've learned about filing taxes:

1) People file income taxes so they can get a refund if they paid too much in taxes for the entire year.

2) Companies give employees a W-2 form to aid in the filing of their tax returns.

3) Tax returns can be sent in the mail or submitted online.

What are income taxes?

Income taxes are taxes that individuals and businesses are required to pay on their income, which is the money they earn from various sources, such as salaries, wages, investments, and business profits. The purpose of income taxes is to fund government programs and services, such as education, infrastructure, and social welfare programs.

In most countries, income taxes are collected by the government through a system of tax returns, where individuals and businesses report their income and calculate the amount of tax they owe based on a set of tax rates and deductions. The tax rates and deductions vary depending on the country and the income level of the taxpayer.

Some countries have a progressive tax system, where the tax rate increases as the income level increases. This means that higher-income individuals and businesses pay a larger share of their income in taxes. Other countries have a flat tax system, where everyone pays the same tax rate regardless of their income level.

Income taxes can be a significant expense for individuals and businesses, and tax laws can be complex and subject to change. It is important to stay informed and seek the advice of a tax professional to ensure compliance with tax laws and minimize tax liability.

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For a college student who wishes to calculate the true costs of going to college, the costs of room and board Group of answer choices should be counted in full, regardless of the costs of eating and sleeping elsewhere. should be counted only to the extent that they are more expensive at college than elsewhere. usually exceed the opportunity cost of going to college. plus the cost of tuition, equals the opportunity cost of going to college.

Answers

Answer:

should be counted only to the extent that they are more expensive at college than elsewhere

Explanation:

The true cost of any type of commodity means the hidden cost or the negative cost i.e. external that added at the time when the pricing of the products are to be done. Also it varies with the market price and it is differently charged to decrease the misuse

So for determining the true cost the college student should keep in mind that the room cost and the board could not go below the market price

hence, the option b is correct

WILL GIVE BRAINLIEST

1. If the iPhone increases from $800 to $900, what does this do to demand?

A. Decreases Demand.
B. Decreases the Quantity Demand
C. Increases Demand
D. Increases the Quantity Demand

2. The price of gas is expected to increase later in the year. What will happen to the demand for SUVs later in the year?

A. Demand Increases
B. No change in demand
C. Demand Decreases
D. Quantity of Demand Decreases

3. The government has imposed a new regulation for car companies to install baby seat anchors to support baby seats in all new cars produced. How does this change supply for cars?

A. Does not impact supply
B. Decrease Supply
C. Decreases Quantity Supply

4. Papa Johns has a sale on pizzas, how does that impact demand?

A. Increases the Quantity Demand
B. Decreases the Quantity Supplied
C. Decreases Demand

Answers

Answer:

1)B

2)C

Explanation:

A customer believes ABC's stock price will rise, but she does not currently have the money to buy 100 shares. How could the customer use options to profit from a rise in the stock's price

Answers

Answer:

The customer could buy call options and sell put options.

Explanation:

A call option gives you the right to buy a stock at a certain price. If the price of a stock rises (as the investor believes), the call option can be exercised and a profit will be made.

A put option gives you gives you the right to sell at a certain price. If the price of a stock rises (as the investor believes), the put option will not be exercised since the sales price will be lower than the market price.

If a harmful substance is used in a workplace, the company must provide what informational document to employees?
A.

Material safety data sheet
B.

Ergonomics checklist
C.

Guarantee
D.

Warranty

20 POINTS HURRY PLZZZ

Answers

Answer:

i would say B

Explanation:

tell me a story that has happened to you who evers is best i’ll give you point or whatever

Answers

Explanation:

Soo- one time i was in mexico, snorkeling :D

and my dad surprised me with something i didn't expect. a banana. at first i was verrrrrry annoyed, i thought i would've gotten some new gear or stuff. out of nowhere, he takes the bananas out of his pocket and pushes me and my siblings in the water. he chucks a banana at me and i get salt in my eyes, screaming in pain because i hadn't put my goggles on. we swam out to sea, the banana absorbing the salt water. then- the last thing i would expect happened. A SEA TURTLE SNAPPED IT OUT OF MY HANDS LOL

i hope u enjoyed my story :D

If the company issues common stock of $5,000 and pay dividends of $40,900, how much is net income (loss)?

Answers

Answer:

1.  $13,000

2. $34,000

3. $52,200

4. $28,100

5. $13,700

6. ($18,500)

Explanation:

Hi, I have attached the full question as pdf below

The Accounting equation is stated as :

Assets = Equity + Liabilities

also stated as,

Equity = Assets - Liabilities

therefore,

1.  Equity = $29,000 - $16,000 = $13,000

2. Equity = $63,000 - $29,000 = $34,000

now

Beginning Equity + Common Stock Issue + Net Income - Dividends = Ending Equity

where,

Beginning Equity = $13,000 (calculated)

Ending Equity = $34,000 (calculated)

therefore,

3. Net Income = $34,000 +$36,700-$13,000-$5,500 = $52,200

4. Common Stock = $34,000 + $8,100 - $13,000 - 1,000 = $28,100

5. Dividends = $13,000 + $16,700 + $18,000 - $34,000 = $13,700

6. Net (Ioss) = $34,000 - $13,000 - $41,100 + $1,600 = ($18,500)

China has been successful in international business in the past. Yet, the country is ruled under a communist regime. Do you think that a country should have a democratic government to successfully manage a capitalist society? Why or why not? What are the risks of doing business with companies in China?

Answers

Answer:

Parallel to the incredible economic developments China has experienced over the past few decades have only been limited political reforms. In this article, Sir Vince Cable explores the question of whether China is a Capitalist or Communist country.

Deng was a committed Communist ever since he joined the party (in France) as a young man. Although he steered China to be a market economy he never ceased to uphold Communist party rule – and he is credited with having backed the Tiananmen Square ‘massacre’ to ensure that the party’s authority and monopoly of power. Indeed, he survived as one of Mao’s top generals and closest party associates by either participating in or turning a blind eye to Mao’s purges and mass killings.

Deng is a difficult figure for Westerners to evaluate. He has the remarkable legacy of having, through economic policy reform, lifted more human beings out of poverty than anyone in world history. But he had little interest in ‘human rights’ or Western-style democracy and, as a Communist, regarded these things as either irrelevant or a threat to party rule.

Explanation:

This document outlines the rules and regulations with regards to developers using brokerage services to 'test the market' for a potential development project...?

Answers

Answer: CPS1 (cooperative policy statement #1)

Explanation:

Cooperative policy statement #1 is known as the policy for "testing the market" application, it has been revised to permit sponsors to submit application at any time before the offering plans acceptance for filling and clarifying that extension applications will be granted if the sponsor has submitted an offering plan to the department of law.

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