BUSINESS HIGH SCHOOL

Ord's 5-year bonds pay 6 percent annual interest semiannually on a $1,000 face value. If bonds sell at $985, what is the bond's expected rate of return?

Answers

Answer 1
Answer:

Answer:The expected rate of return on a bond is the total return that an investor can expect to receive from holding the bond. To calculate the expected rate of return, we need to consider both the interest payments and any capital gains or losses from buying the bond at a discount or premium.

In this case, the bond is selling at a discount of $15 ($1,000 - $985). Since the bond pays 6 percent annual interest semiannually, it means that the bond pays $30 ($1,000 x 6% / 2) in interest every year.

To calculate the expected rate of return, we need to add the interest payment to the capital gain or loss. The capital gain or loss is the difference between the face value ($1,000) and the selling price ($985). In this case, the capital loss is $15.

So, the total return on the bond is the sum of the interest payment and the capital gain or loss: $30 + (-$15) = $15.

To calculate the expected rate of return, we divide the total return by the selling price of the bond and multiply by 100 to get a percentage. In this case, the expected rate of return is ($15 / $985) x 100 = 1.52%.

Therefore, the bond's expected rate of return is 1.52%.

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Chapter 13 Saving, Investment, and the Financial System1.Institutions that help to match one person's saving with another person's investment are collectively called the A.Federal Reserve system. B. banking system. C.monetary system. D.financial system. 2.When a large, well-known corporation wishes to borrow directly from the public, it can A.sell bonds. B.sell shares of stock. C.go to a bank for a loan. D.All of the above are correct. 3.Which of the following statements about the term of a bond is correct? A.Term refers to the various characteristics of a bond, including its interest rate and tax treatment. B.The term of a bond is determined entirely by its credit risk. C.The term of a bond is determined entirely by how much sales charge the buyer of the bond pays when he or she purchases the bond. D.Interest rates on long-term bonds are usually higher than interest rates on short-term bonds. 4.The economy’s two most important financial markets are A.the investment market and the saving market. B.the bond market and the stock market. C.banks and the stock market. D,financial markets and financial institutions. 5.Two of the economy’s most important financial intermediaries are A.suppliers of funds and demanders of funds. B.banks and the bond market. C.the stock market and the bond market. D. banks and mutual funds. 6. We associate the term debt finance with A.the bond market, and we associate the term equity finance with the stock market. B.the stock market, and we associate the term equity finance with the bond market. C.financial intermediaries, and we associate the term equity finance with financial markets. D.financial markets, and we associate the term equity finance with financial intermediaries. 7. Northwest Wholesale Foods sells common stock. The company is using A.equity financing and the return shareholders earn is fixed. B.equity financing and the return shareholders earn depends on how profitable the company is. C.debt financing and the return shareholders earn is fixed. D.debt financing and the return shareholders earn depends on how profitable the company is. 8. If the tax revenue of the federal government exceeds spending, then the government necessarily A.runs a budget deficit. B.runs a budget surplus. C.runs a national debt. D.will increase taxes. 9. The source of the supply of loanable funds A. is saving and the source of demand for loanable funds is investment. B. is investment and the source of demand for loanable funds is saving. C. and the demand for loanable funds is saving. D. and the demand for loanable funds is investment. 10.What would happen in the market for loanable funds if the government were to increase the tax on interest income?
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A primary feature of the "the mix" is anything for which one can lose: earned time good time family time probation time parole time

Answers

Answer:

The correct answer is GOOD TIME

Explanation:

A primary feature of the "the mix" is anything for which one can lose GOOD TIME

Ultimately, to be successful, a business musta. fulfill a commercial need.
b. provide a service.
c. make a profit.
d. make you happy.

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The answer would be : C. make profit    , since you need it to pay your employees and feed your family

Profit is basically the main purpose of a business. It would be best for your business to fulfill one customers that give you 1 million dollars , rather than fulfill 1 million customers that only give you 1 dollar.

Answer:

C. Make a profit

Explanation:

This is correct for the PF test.

Have a good day! :)

What are common characteristics or provisions of bonds?

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Answer:

Bonds refer to debt instruments wherein the issuer raises long term finance and agrees to pay the lenders a fixed coupon rate of payments periodically and principal repayment upon redemption.

Bonds are characterized by following :

  1. Face value : This refers to the par value at which bonds are issued and coupon payments are fixed as a percentage of face value.
  2. Fixed rate of coupon payments: Bonds are characterized by a fixed rate of coupon payments i.e interest payments to the lenders periodically and obligatory. It may be paid semi annually or annually.
  3. Maturity : Bonds are to be redeemed by the issuer after a certain period ranging from, say 5 years to 20 years. This means the lenders will be paid back their principal upon such redemption.
  4. Credit Ratings: Bonds are issued with credit ratings such as AAA or AA or BB. AAA is considered to be the best rating. The higher the credit rating, the more attractive such bonds are to the investors as it indicates better credit worthiness of the issuer company.
  5. Issuer: The issuer refers to the agency or the company that issues bonds to the investors. Bonds may be issued by municipality, government or corporate firms. The terms differ accordingly.

The next step in your plan is to identify which government regulations will impact your business. In two to three sentences, explain these impacts and how it will affect your business

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Answer:There are many regulations that can affect business and this varies depending on the product ,the country and the type of business .Here ,I will identify 5 government regulations that can affect the business which are advertising,tax, employment and labor law ,anti trust law and email marketing etc

Explanation:

Tax :Tax is a compulsory payment business , individuals must pay to the government .

Different tax type such as excise, employment,income tax etc has different impact on the business ...The higher the tax ,the more effect it has on the business . Government also offer incentive in form of tax to business owners and tax holiday to encourage business owners ,this has positive effect on the business .

Employment and labor law:This law will affect how you employ people to work for you and guidelines you must follow in your conduct with them

Anti trust law:Anti trust law explains the relationship between the business the customers,and other competitors .

Anti trust law addresses issues such as fixing of prices ,price discrimination, Monopoly etc .

The antitrust law can affect a business positively or negatively.

Advertising : Advertising is necessary for the growth of a business but due to dubious act of some business men .The government has taken appropriate steps to control false advert .

The impact advertising will have on your business is huge ,provided you abide by the rules of the government such as complying with labor laws , proper understanding of rules of marketing etc .once those are understood ,good advertisement will increase a business customers .

Email marketing :This involves how you sell your products via email messages to customers and potential customers .The government regulations here are similar to advertising and the main aim is to protect consumers from false information, exaggerated opinions, deception etc .

This regulation ensures things are done the proper way and a due process is followed .

He decline in U.S. manufacturing was balanced by all of the following, excepta. technology.
c. computers.
b. pharmaceuticals.
d. agriculture.

Answers

The decline in U.S. manufacturing was balanced by all of the following, except pharmaceuticals. The correct option among all the options that are given in the question is option "b". The other choices are incorrect and can be avoided. I hope that the answer has come to your desired help.

Answer:

b

Explanation:

Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay the entry because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market?

Answers

Answer:

Opportunity costs

Explanation:

An advantage, benefit, or benefit of something that must be offered up to obtain or accomplish something different. Since each resource can be put to elective uses, each activity, decision, or choice has a related open opportunity cost.

for instance, you invest energy and cash going out to see a film, you can't invest that time at home perusing a book, and you can't spend the cash on something different.
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