Answer:
a) YTM = 9.8%
b) realized compound yield = 9.9%
Explanation:
a) PMT is 80
par value FV = 1000
coupon rate = 8%
current price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) is calculated as 
= 
= 9.8%
b) r2 = 10% = 100%+10% = 1.1
r3 = 12% = 100%+12% = 1.12
To find the realized compound yield, we first need the future value (FV) of the principal and reinvested coupons.
FV = ($80 * 1.10 * 1.12) + ($80 * 1.12) + $1080 = $1268.16
Let a be the rate at which the future value equals $1268.16.
953.1(1+y)³ = $1268.16
(1+y)³ = 1.33
1+y = 1.099
y = 0.099 = 9.9%
Answer:
- No, he will not accumulate sufficient funds to purchase his delivery truck after 6 years.
Explanation:
To determine how much money Earl Miller—the owner of the Papa Gino's franchise—will have available in 6 years, it's necessary to assess the worth of the $20,000 he plans to invest at a 5% interest rate compounded semiannually:
With semiannual interest: 5% / 2 = 0.05/2 = 0.025
Equation:
Here, r/n was calculated previously: r/n = 0.05/2 = 0.025; and t refers to the time in years: 6.
Thus, the future value of the investment would fall short of the truck's price, meaning
he will not be able to afford the delivery truck after 6 years.
Clarifying the assignment would be the initial action John should undertake to expand Kerry's duties.
Explanation:
Option A: When new responsibilities are introduced, John must first clarify the nature of these tasks. This approach will help Kerry manage her work efficiently.
Option B: Although feedback is beneficial, it's not the initial step for adding responsibilities.
Option C: Informing others is John's duty, not Kerry's, thus, this option is not valid.
Option D: While accountability is essential, it comes at a later stage.
Response:
Clarification:
When the ABC company submitted its Articles of Incorporation to the State of California, they intended to operate as ABC Inc., which implies corporation status with limited liability.
However, if a lawsuit is initiated by XYZ Inc. for breach of contract, and considering that XYZ has filed this case against ABC, the company will shift to being recognized as a partnership subject to unlimited liability. This change occurs because ABC has received notification from the State of California indicating that their Articles of Incorporation were not accepted due to the omission of their Registered Agent on the application forms.
Thus, Tyler's company has acquired a new customer who is willing to purchase 20% of the annual production at a 40% discount.
