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:
To achieve a strong credit score, one must consistently manage debt repayments since they began borrowing.
Your friend is mistaken in thinking that everyone who made all payments on time within a single year has a high credit score, as this view overlooks prior years' activities.
Some individuals might have missed payments on earlier loans but managed to maintain timely payments in 2015. Although this can enhance their credit score, the score would still reflect a lower value due to previous behaviors that negatively impacted it.
$1.50. Explanation: Desiree earns $120 monthly from her investments. Therefore, her annual investment income amounts to $120 x 12 = $1,440. Additionally, as a band member, she earns $200 weekly, translating to an annual band income of $200 x 52 weeks = $10,400. If her total annual income totals $49,696, her salary income is calculated as $49,696 - ($1,440 + $10,400) = $49,696 - $11,840 = $37,856. This leads to weekly earnings of $37,856 / 52 = $728. Consequently, her hourly rate is determined by $728 / 28 = $26. Desiree aspires to achieve an annual income of $51,880, and assuming her investment and band revenues remain constant, she needs to make $51,880 - $11,840 from her salary, equating to $40,040 annually. Thus, her updated weekly earnings would be $40,040 / 52 = $770 and new hourly earnings of $27.5. Hence, the raise she should request is ($27.5 - $26) = $1.50.
Answer:
Part a:
Show the probability density function for the waiting times at Kroger, assuming they are exponentially distributed.
Solution:
Probability density function f(x) = (1/ )*e-x/ = (1/26)*e-x/26 (result)
Part b:
Calculate the probability that a customer waits between 15 and 30 seconds.
Solution:
0.2462
Part c:
Determine the probability that a customer must wait longer than 2 minutes.
Solution:
0.0099
Explanation:
All calculations are included.
Answer: Which option below illustrates a decision related to managing working capital? B. choosing between paying cash immediately for a purchase or utilizing the supplier’s offered credit.
Explanation: Working capital deals with short-term assets and liabilities. Deciding on the payment method for a purchase involves considering the overall financial objective connected to the transaction. This approach ensures the payment choice aligns optimally with the company’s financial strategy.
