1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
motikmotik
2 years ago
6

You buy a security that will pay you $500 in 1 year. You pay $455 today. If you hold this security to maturity, your yield to ma

turity is ____ while your rate of return is ______.
Business
2 answers:
aalyn [17]2 years ago
6 0

The yield to maturity would be 9.89% while your rate of return is 9%

<h3>What is Yield to Maturity?</h3>

This refers to the accumulated rate of return of an investment made on a bond after payment of the principal.

<h3>How to Calculate:</h3>

Given that:

  • Face value of security = $500
  • Price paid today = $455

Then, the yield to maturity = (Face Value/Current Price) x (1/Years to Maturity) - 1

= $500/$455 x 1/1 - 1

= 0.0989

This means that if you hold this security to maturity, the yield to maturity would be 9.89% while the rate of return is 9%.

Read more about yield to maturity here:

brainly.com/question/26376004

Elis [28]2 years ago
3 0

If you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.

<h3>What is the yield to maturity?</h3>

The yield to maturity (YTM) refers to the total rate of return earned by a bond when it makes all interest payments and repays the original principal.

YTM is equal to a bond's internal rate of return (IRR) if the bond were held to maturity.

<h3>Data and Calculations;</h3>

Face value of security = $500

Price paid today = $455

Yield to maturity = (Face Value/Current Price) x (1/Years to Maturity) - 1

= $500/$455 x 1/1 - 1

= 0.0989

OR

Yield in dollars = $45 ($500 - $455)

= 0.0989 ($45/$455 x 100)

Rate of return = 9% ($45/$500 x 100)

Thus, if you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.

Learn more about yield to maturity and rate of return at brainly.com/question/5524579

You might be interested in
What is a promotional strategy?
Citrus2011 [14]

Answer:

Promotional strategy is designed to inform, persuade, or remind target audiences about those products.

Explanation:

6 0
3 years ago
Read 2 more answers
What are the requirements for something to be used as money?
Anastasy [175]
For it to have international value
7 0
3 years ago
Currency (paper money plus coins) constitutes about: ____________
kirza4 [7]

Answer:

a. 57 percent of the U.S. M1 money supply.

7 0
2 years ago
CobWeb Inc., a software firm, assesses managers based on how well they understand theirsubordinates, and the factors involved in
kotegsom [21]

Answer:

The correct answer is E) Sebastian checks if the job flow and procedures are logical.

Explanation:

The entry process means the beginning of the functions exercised by managers to determine if they are indeed making good use of tools for the understanding of their subordinates. If there is a logical order between the workflow and the procedures, it is said that the evaluation is executed in the best way, since in order to execute the work it is necessary to adhere to a series of guidelines that guarantee excellent and quality work.

8 0
3 years ago
Can somebody please give me 10 examples of jobs that have to do with finance?HELP ASAP
tamaranim1 [39]

Finance Jobs:

Financial planner, Financial Analyst, Investor Relations Associate, Budget Analyst, Actuary, Accountant, Credit Analyst, Attorney, Commercial Real Estate Agent, Business Teacher.


Marketing Jobs:

Marketing Specialist, Social Media Manager, Email Marketing Manager, Product Manager, Brand Manager, Media Buyer, eCommerce Manager, Web Producer, Public Relations Managers

3 0
3 years ago
Other questions:
  • The Hill Company reported the following results:
    5·1 answer
  • I really need help I know this isn’t about school but it’s really important. Valentine’s Day is coming up and I already have som
    11·1 answer
  • On August 15, you purchased 110 shares of stock in the Cara Cotton Company at $26 a share and a year later you sold it for $22 a
    7·1 answer
  • g if 1 British pound can be exchanged for 180 cents of U.S. currency, what fraction should be used to compute the indirect quota
    13·1 answer
  • Batista Company management wants to maintain a minimum monthly cash balance of $19,100. At the beginning of April, the cash bala
    15·1 answer
  • Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove Company expects fixed costs
    14·1 answer
  • As the supply of Blu-Ray players has increased over the years and the price of Blu-Ray players has dropped, the _____.
    7·1 answer
  • A U.S. investor has borrowed pounds, converted them to dollars, and invested the dollars in the United States to take advantage
    10·1 answer
  • Who is your fav group or solo singer
    11·2 answers
  • A company's balance sheet shows: Cash $36,000, Accounts receivable $23,000, Office equipment $57,000, and Accounts payable $24,0
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!