ace worth of \$1,000, and it renders semiannual interemainder payments. If you need an 8.4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? \$1,105.69 \$1,133.34 \$1,161.67 \$1,190.71 \$1,220.48

steustatiushistory.org:

\$1,105.69

Explanation:

We usage the existing value formula that is presented on the attachment

Data detailed in the question

Future value = \$1,000

Rate of interest = 8.4% ÷ 2 = 4.2%

NPER = two decades × 2 = 40 years

PMT = \$1,000 × 9.5% ÷ 2 = \$47.5

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after resolving this, the maximum price of the bond is \$1,105.69

Which steustatiushistory.org is not a cost to the investor that is included in the calculation of an investment"s interest rate

steustatiushistory.org:

Risk of a poor investment

Explanation:

When an investor is calculating an investment"s interest price, he/she should include all brokerage commissions and also fees, inflation rate (interest price have to exceed the inflation rate) and the investor"s opportunity cost.

You are watching: Assume that you are considering the purchase of a 20-year noncallable bond

Investors are hazard adverse, which implies that a risky investment should yield a higher rerotate. That could be thought about a rational investment dominance, but it is not included in the calculation of the interemainder rate.

13. The stress and anxiety felt because the consumer cannot anticipate the outcomes of a purchase however believes tright here might be negative conseq

steustatiushistory.org and Explanation:

B. perceived risk: this comes about once the consumer fears negative results from a purchase

C. E. every one of the above are negative after-effects linked via perceived hazard.

C. brand losteustatiushistory.orglty: this is dedication and preference for a specific and also recurring purchase of its commodities regardmuch less of rivals actions

D. Beliefs: personal ideas, society and experiences are what make for consumers decision right here

Opinion leaderships and word of mouth : culture, groups, well-known opinion and various other such influences drive decision of customer here

6 0
7 months ago
John has an economics test tomorrow. He must examine and has actually planned the rest of his day so that he deserve to fit some study time in. He
viktelen <127>

steustatiushistory.org:

C) John"s decision on exactly how to alsituate his time is consistent through the rationality assumption since the decision is intfinished to make him much better off.

See more: How Do You Say People In French ? ˈPi Pəlpeo·Ple Tag Archives: How To Say People In French

Explanation:

One of the pillars of contemporary economic concept is that individuals are rational and also they will attempt to maximize their advantage at the lowest possible cost. Since sources are finite, then all our decisions are made on the margin. What is the marginal advantage that we can acquire from purchasing something at its marginal expense (marginal cost = sales price for an individual).

In this case, John is trying to maximize his utility, first he will certainly go to the gym which most likely provides a larger advantage to him, and also then he is going to examine (which additionally gives a benefit). He could have actually chosen to either go out to elsewhere or just continued to be home and watch TV, play videogames, and so on, yet supposedly these tasks do not provide him enough benefits however recurrent a huge price in time.

4 0
7 months ago
Kelly likes to shop at Targain. She really likes the Archer Farms brands with the rooster on the label, which is among Target"s
nalin <4>

steustatiushistory.org and also Explanation:

c. store brands

6 0
6 months ago
1
MariettaO <177>

steustatiushistory.org:

The team may not perdevelop well:

Explanation:

The greatest hazard via naming rights is negative news concerning the team. The sponsor"s brand also name will certainly be associated with the team; any negative team news will affect the brand name.

If a team percreates poorly, some customers may associate the team"s dismal performance via the brand also name. Customers may shy amethod from the sponsor"s products as they distance themselves from dismal performances.

6 0
8 months ago
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