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Sholpan [36]
1 year ago
11

A bond has a $1,000 par value, 20 years to maturity, and a 5 nnual coupon and sells for $860. What is its yield to maturity (ytm

)? round your answer to two decimal places
Business
1 answer:
o-na [289]1 year ago
8 0

Its annual compound yield to maturity (YTM)  is $881.00

An annual compound hobby is calculated by multiplying the initial main amount by one plus the once-a-year hobby fee raised to the wide variety of compound durations minus one. A hobby may be compounded on any given frequency agenda, from continuous to every day to annually.

"12% hobby" approach that the hobby fee is 12% in keeping with year, compounded annually. "12% interest annual compound monthly" manner that the hobby charge is 12% in line with the year (no longer 12% consistent with month), compounded month-to-month. Consequently, the hobby price is 1% (12% / 12) in line with the month.

A compound hobby is the addition of a hobby to the principal sum of a mortgage or deposit, or in other phrases, interest on essential plus interest.

First, find YTM

N = 20

I = YTM

PV = -860

PMT = 50

FV = 1000

YTM = 6.245%

The price after 5 years is nothing but the future value of the bond after 5 years

N = 5

I = YTM = 6.245

PV = -860

PMT = 50

FV = $881

So the answer is $881.00

Learn more about annual compound here brainly.com/question/24274034

#SPJ4

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notsponge [240]

A monopoly firm's use of a tariff provides it with additional protection because the tariff reduces competition from imports by raising the import price.

Option C

<u>Explanation:</u>

A monopoly business is a price-maker, even through the amount, it generate it can control the market rate. When selling less and it can sell far less and can sell more and sell just because the price drops. when making less because it can sell more.

This is due to the fact that the tariff basically transfers the profits out of the international monopolist to the national government.

The monopolist's revenues are limited to an amount provided by the Horizontal stripe when the tax is introduced. Therefore, the tariff increases the total domestic social security as it reduces the profits of the foreign company.

8 0
3 years ago
Conduct your own social engineering experiments. 1) While at a restaurant, convenience store, bank, place of business, or any sh
alexandr1967 [171]

<u>Explanation:</u>

Note,  in the ICT field, the term social engineering refers to actions that involve the use of cunning to steal sensitive or unauthorized information from someone by means of social or human interactions with them.

For example, such information could be manipulatively gotten;

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5 0
2 years ago
Let’s assume a required reserve ratio of 10 percent.
Furkat [3]

Answer:

The answer is 72.9 dollars.

Explanation:

The reserve ratio of 10% means that bank must keep 10% percent of amount deposited in bank to meet emergency payments and can lend the remaining 90% to other banks. So the second bank can lend 81 dollars that is 90% of 81 dollars. As per this rule second bank has 72.9 dollars (90% of 81) to lend.

5 0
3 years ago
1 + 1 = ?<br> First to answer gets brainliest XD
Igoryamba
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Hope this helps

-Zayn Malik 1795
3 0
3 years ago
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On January 2, 2019, Adelphi Company purchased a patent for $235,000 plus
Ymorist [56]

Answer:

The annual amortization expense for 2019 will be $35000.

Explanation:

The amortization expense for the patent calculated based on the useful life of patent. The purchase of value of $235000 plus $10000 gives the total value of $245000 while use the patent of 7 years.

The formula for amortization expense = (Cost of patent - Residual value ) / Useful life of patent)

amortization expense = ($245000-0)/7 = $35000

The legal life would not count due patent in business use for limited life compare to legal life of patent.

4 0
3 years ago
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