Answer:
Current yield is 6.17%
<em>YTD is 5.43%</em>
<em>YTC is 4.26%</em>
Explanation:
Tenor: 15 years
-> number of payment (NPer) is 30 (= 15 years * 2 for semiannual)
Coupon rate: 7.4%
- > semiannual payments (PMT): $37 = ($1000*7.4%/2)
Future value (FV): $1000
Present value (PV): $1200
Current yield = annual coupon/ current price = $37*2/$1200 = 6.17%
<u>Extra: </u>
We use excel to calculate yield to date (YTD) or nominal yield:
= Rate(Nper, PMT, - PV,FV) = Rate(30,37,-1200,1000) = 2.717% semiannual
-> annual rate is 5.43%
The bond issue is callable in 5 years at a call price of $1,074, then FV is $1074
Yield to call = rate(10,37,-1200,1074) = 2.13% semiannual
-> annual rate is 4.26%
Answer:
Sinking fund
Explanation:
Sinking fund is a term used to describe an account that a bind trustee managed for the sole purpose of redeeming bonds early.
sinking fund: This can be seen as a type of fund that is created for the sole aim of repaying debt. It is created for the purpose of making debt easier to pay off.
The sinking fund account owner set aside a particular amount of money for a specific purpose.
Sinking funds is used to entice investors because in the case of default or bankruptcy, sinking fund will still allow investors to get their investment back. it is also a means used by corporations for bonds and deposits money to buy back issued bonds or parts of bonds before the maturity date arrives.
Answer:
increased
Explanation:
The correct answer is that the equilibrium wage increased as the equilibrium quantity of labor increased.
Answer: Private good
Explanation:
According to the given scenario, the Pennsylvania Turnpike is classified the private type of good on the basis of given situation as private good is one of the type of goods that must be purchased by the customers due to its positive advantages or benefits.
The private goods are consumed by the customer in maximum amount in the market as it is one of the essential type of good as it is Rivalry and excludability.
The following are some example of the private goods are as follows:
- Food
- Clothes
- Fresh air
- Knowledge
Therefore, Private good is the correct answer.
