You have just bought a ve-year zero-coupon treasury bond for $950 per $1000 face value.
(a) what is the annually compounded yield to maturity on the bond?
(b) suppose the yield to maturity on comparable zeros increases to 2% immediately after purchasing the bond and remains there. calculate the annual holding period return if you sell the bond after one year.
(c) what is the annually compounded yield to maturity on the bond one year after the original purchase?
(d) suppose after one year you instead hold the bond to maturity. what is the annualized holding period return for the ve year investment?

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6