Suppose that you have purchased a 3-year zero-coupon bond with face value of $1000 and a price of $850. If you hold the bond to maturity, what is your annual return?

Answers

Answer 1

Answer:

Explanation: In this situation, our profits would be $150 ($1000-$850). The total return on investment is 17.65% ($150/$1000) for the life of the bond.

Therefore, the annual return, is simply 1/3 of 17.65%, which equals 5.88%.

Answer 2

If you have purchased a 3-year zero-coupon bond with face value of $1000 and a price of $850 and if you hold the bond to maturity, the annual return is simply 1/3 of 17.65% ,which equals 5.88%

What is zero-coupon bond?

A zero-coupon bond is a bond that pays no interest and trades at a discount to its face value. It also called a pure discount bond or deep discount bond.

A zero-coupon bond is also known as accrual bond.

U.S. Treasury bills are an example of Zero-Coupon bond.

What is face value? Face value is an actual value of the digit in a number.Face value is the price that is printed on something.What is bond to maturity?

A bond to maturity, is usually set when it is issued. Bond maturities can range from one day to 100 years, but the majority of bond maturities range from one to 30 years. Bonds are often referred to as being short-, medium- or long-term.

What is annual return?

The annual return is the return that an investment provides over a period of time. it's a record of publicly available information about your company that appears on the Companies Register.

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Related Questions

Can a society address all of these goals

Answers

A society can address the important goals that are set for its resident's success.

5 Basic Goals of a Society

There are 5 basic goals that a society wants to accomplish however not all the goals are achievable at once but still plans can be made accordingly and eventually success will be the destiny.

The 5 basic goals of a society are

Security StabilityFull EmploymentEconomic FreedomEconomic Growth

Therefore a society can achieve its goal if its vision and mission are clear.

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What is the annual income of a household in the 90th percentile of annual household income in Maryland (to the nearest dollar)

Answers

Answer: According to Money magazine, Maryland had the highest median annual household income of an state in 2018 at $75,847

To the closest dollar, the annual household income of a Maryland household in the 90th percentile is $ 119178.

What is annual household income?

Annual Household Income is the gross income of an individual as of the date of occupancy indicated on the income certification issued by the Corporation, as well as the gross income of all other individuals who intend to permanently reside with that individual in the Development to be funded by the Corporation.

The level of average household income can be used to gauge how financially secure a nation's residents are. Because they only contain disposable income and take into account that persons who live in shared housing benefit from sharing at least some of their living expenses, mean or median net household income, after taxes and mandated contributions, are used as indicators of standard of living.

The median income is the number that divides the income distribution into two equal groups, with half of the population earning more than that amount and half earning less.

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An insurance settlement offer includes annual payments of $36,000, $42,000, and $50,000 over the next three years, respectively, with the first payment being made one year from today. What is the minimum amount you should accept today as a lump sum settlement if your discount rate is 7 percent?
A. $119,877.67
B. $111,144.18
C. $105,000.10
D. $118,924.27
E. $114,556.88

Answers

it’s C bc u add up all the money

Why might someone choose to diversify their investments?

Answers

Answer:

When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.

Answer:

C: Reduce both risks and returns.

On Edge.

A macroeconomic policy which is adopted to combat inflation through
government expenditure and tax is?​

Answers

Fiscal Policy

(: hope this helps

Accounting takes in the process of Identifying, Recording and Communicating”. How would you explain the statement? Support your answer with examples on Identifying, Recording and Communicating

Answers

What this statement means is that accounting is being defined as the process of record keeping, management and analysis.

What is accounting?

This is the process that is mostly used in finance to communicate and record information especially in income and financial statements.

Accounting is mostly about being able to know the transactions that one is to record, recording it in the appropriate place and the ability to communicate the records using reports.

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True or false: Efficiency within pure competition can be temporarily disrupted by a change in consumer tastes.

Answers

It should be noted that efficiency within pure competition can be temporarily disrupted by a change in consumer tastes. Therefore, it's true.

What is competition?

It should be noted that competition is important in marketplace as it acts as a regulating force.

In this case, efficiency within pure competition can be temporarily disrupted by a change in consumer tastes.

Therefore, the statement is true.

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Which of these term is often used to reflect ways in which organizations show appreciation
for diversity among job applicants, employees, and customers?

Answers

Answer:

valuing diversity

Explanation:

this is the most common term

What are some of the things you could do to benefit your community other than providing jobs and tax revenue?

Answers

Answer:

Volunteer work, charitable donations, or participating in community festivals and events are all common for small business owners. You may see a local car service sponsoring a youth sports team or a group of downtown merchants organizing a community trash pick-up day.

Explanation:

A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.
A. sale of goods
B. issuance of materials into production
C. purchase of materials
D. completion of goods

Answers

When you see a journal entry that leads to a debit of Raw Materials and a credit of Accounts Payable, this is a C. purchase of materials.

What happens when materials are purchased?

As materials are an asset, the raw materials account will be debited to show that raw materials are increasing.

If the Accounts Payable is credited, it means that it is increasing as well because it is a liability. The transaction was therefore done by buying the materials on credit.

In conclusion, option C is correct.

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The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent compounded quarterly is

Answers

The future value of the quarterly annuity compounded every quarter is $75,401.26.

What is the future value of the quarterly annuity?

The formula that can be used to determine the future value of the quarterly annuity is: Amount x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

r = interest rate = 12% / 4 = 3%n = number of years = 10 years x number of compounding = 10 x 3 = 30 years

Annuity factor ={ [(1.03)^40] - 1/} 0.03 = 75.401260

Future value = 75.401260 x 1000 = $75,401.26.

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What economic challenge comes with being a contingency worker?

A.
It can be hard to predict how much money you will make.

B.
Much of the work comes with a salary and benefits.

C.
It means there are fewer applicants for full-time positions.

D.
There is little protection against unruly members of the public.

Answers

Answer:

answer is d

hope it helps

which of the following is a potentional benefit of joining a business-related student organization?
A developing texting skills
B developing artistic skills
C developing technology skills
D developing athletic skills

Correct answer: C

Answers

I would say C is the correct answer.

Answer:

C, Developing technology skills

Explanation:

Verified answers with Verified results.

ANSWER FAST PLEASE!!
If you borrow $2,000 at 5 percent simple interest, how much will you owe after one year?
A. you will owe the principal of $2,000 minus 5 percent of the principal
B. you will owe the principal of $2,000 only
C. you will owe the principal of $2,000 plus 5 percent of the principal
D. you will owe 5 percent of the principal only
THIS IS FOR FINANCIAL LITERACY

Answers

Answer:

c

Explanation:

A person will owe the principal of $2,000 plus 5 percent of the principal is the amount after one year. Hence, option C is correct.

What is principal?

Principal is the actual amount that a person agrees to pay back, whereas interest is the amount of borrowing. Principal money is given by the lender to the borrower.

Formula of finding the out principal amount is Principal = Interest/ rate*time period.

Thus, option C is correct.

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requiring Walmart to lower prices to ensure that small competing businesses are not disadvantaged is an example of

Answers

Answer:

It's an example of price control

Explanation:

To say that a price ceiling is nonbinding is to say that the price ceiling a. results in a surplus. b. is set above the equilibrium price. c. is set below the equilibrium price. d. causes quantity demanded to exceed quantity supplied.

Answers

Price ceiling is nonbinding when price is set above the equilibrium price.

What is price ceiling?

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price. When it is set above equilibrium price, it is nonbinding. When price is nonbinding, it is not effective.

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Suppose that Markus Braun has a set of steps that Wirecard takes each time they acquire a new company. This is known as a .

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The name which is given to the set of steps which Markus Braun to make sure that Wirecard acquires a company is:

Strategic goal

What is a Strategic Goal?

This refers to the long term objectives of a company or business which usually requires patient planning and moves which helps to achieve the aims and objectives of the company.

With this in mind, we can see that because Markus Braun is taking careful steps in order to acquire a new company, then this is known as strategic goal.

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What is a method that managers can use to motivate employees?
1.Encouraging employees to specialize
2.Investing in new technology
3.Offering performance-based financial rewards
4.Sharing customer information with employees

Answers

A method that managers can use to motivate employee is offering performance-based financial rewards.

What is motivation?

Motivation is the process that guides and keeps people towards ensuring set goals are meet. It is what keeps one going, which act as encourage and spur one to do more.

Managers always want an improved performance from their employees. One of the method they use is to offer them performance-based financial rewards if they are able to meet and exceed certain targets.

Hence, a method that managers can use to motivate employee is offering performance-based financial rewards.

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To guide goodwill, employee and manager ‘intentions’ are informed by

Answers

In guiding goodwill, employee and manager "intentions" are informed by customer satisfaction.

What is customer satisfaction?

Customer satisfaction is based on how efficiently and effectively a company's products or services meet customer expectations. Customer satisfaction increases customers' purchase intentions and loyalty. Measuring customer satisfaction with surveys helps the organization to predict its business growth and future revenue.

Thus, to ensure that the organization maintains its goodwill or good reputation with customers, the employees and managers must exceed customers' expectations.

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Contribution margin per unit contributes to covering ______ costs and then generating _____ on a per unit basis.

Answers

Answer:fixed; profits

Explanation:

Recently, the United States imposed a 35 percent tariff on Chinese tire imports in the hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of

Answers

Imposing the tariffs is an example of increasing protectionism.

What is protectionism?

Protectionism are the various policies enacted on by the government of a country with the aim of protecting local industries or local production.

When goods are imported from a foreign country, it has the potential to discourage local production as the imported good may be cheaper. Imposing tariffs would help in limiting the encroaching of foreign products.

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Introduction of accounting

Answers

Answer:

Accounting is the language of business. It is the system of recording, summarizing, and analyzing an economic entity's financial transactions

Explanation:

Answer:

Accounting is the language of business. It is the system of recording, summarizing, and analyzing an economic entity's financial transactions. Effectively communicating this information is key to the success of every business. Those who rely on financial information include internal users, such as a company's managers and employees, and external users, such as banks, investors, governmental agencies, financial analysts, and labor unions. These users depend upon data supplied by accountants to answer the following types of questions:

• Is the company profitable?

• Is there enough cash to meet payroll needs?

• How much debt does the company have?

• How does the company's net income compare to its budget?

• What is the balance owed by customers?

• Has the company consistently paid cash dividends?

• How much income does each division generate?

• Should the company invest money to expand?

Accountants must present an organization's financial information in clear, concise reports that help make questions like these easy to answer. The most common accounting reports are called financial statements.

Explanation:

Which one is NOT considered an universal virtue?
A. Respect
B. Honesty
C. Happiness
D. Responsibility

Answers

Answer:

B - happiness

Explanation:

cause it's not a must for a person to be happy

After her first business trip to a major city, Jayla is alarmed when she reviews her credit card receipts. Both the hotel bill and the car rental charge are in excess of the price she was quoted. Was Jayla overcharged, or is there an explanation for the excess amounts

Answers

Jayla was not overcharged there has to be a reason for the excess amount.

What is a business trip?

This is a trip that is undertaken solely for reasons that are work related. Jayla was not overcharged on the trip as there could be a reason for the excess amounts.

What is an overcharge?

This is a charge that is said to be too high, based on the services that was rendered to a person.

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to file your federal and state taxes you

Answers

To file your federal and state taxes you  have to fill out IRS Form 1040 or Form 1040-SR using your hand and then one can mail it.

Thereafter, one can also use tax software and file taxes online, or one can hire any human tax preparer to do the tax filing for you.

How do you file state and federal taxes?

The Filing taxes for a lot of taxpayers in most states is known to be the act of filing a federal and a state return.

In all, a lot of federal and any state returns is said to be filed at the same time.

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Draco, Inc. has the following overhead standards: Variable overhead: 4 hours at $8 per hour Fixed overhead: 4 hours at $10 per hour The standards were based on a planned activity of 20,000 machine hours when 5,000 units were scheduled for production. Actual data follow.

Answers

Answer:

he alloy produced more waste than normal, as evidenced by a direct-material quantity variance of $2,000U, and was also difficult to use. This slowed worker ...

1 answer

·

Top answer:

Favorable Direct-material price variance 9500 F Les...

Explanation:

What are the factors of production of a gas station?

- land :
-labour :
-capital :
- entrepreneurship:

Answers

labor- ex: attendants who work gas station.

land - ex: physical space occupied.

capital - ex: gas tanks and pumps.

Answer:

labor-ex:attendants who work gas station.land - ex: physical space occupied.capital - ex: gas tanks and pumps.

Explanation:

What was the cost of goods sold for Lunar Company, if the days in inventory ratio was 73 days, and the average inventory was $125,000 for the most recent fiscal year

Answers

The cost of goods sold for Lunar Company, if the days in inventory ratio was 73 days is:$625,000.

Cost of goods sold

Using this formula

Cost of goods sold=365 day/Days in inventory ratio ×Average inventory

Where:

Days in inventory ratio=73 days

Average inventory=$125,000

Let plug in the formula

Cost of goods sold=365/73 days×$125,000

Cost of goods sold=$625,000

Inconclusion the cost of goods sold for Lunar Company, if the days in inventory ratio was 73 days is:$625,000.

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Nail polish and polish remover are related goods because they are frequently bought together. If nail polish becomes cheaper, what happens to the demand for polish remover?

A) Demand decreases by moving along the current demand curve
B) Demand decreases by shifting the demand curve to the left
C) Demand increases by moving along the current demand curve
D) Demand increases by shifting the demand curve to the right

Why?

Answers

Answer: The correct answer is D

Rohan wants to buy part of a company, and is interested in stocks. He knows that his favorite company, Apple, is traded on the stock market. Can he purchase stock in the company?

Answers

Answer:

Yes, he can buy stock in Apple.

Explanation:

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