All categories

2 years ago

QUESTION 3

Business

1 answer:

viva [34]2 years ago

6 0

The values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively.

<h3>How to illustrate the information?</h3>

The price of Bond 1 = RM7,892.93, Bond is selling at a discount because the bond price is less than the Par value

Price of Bond 2 = RM10,000, Bond is selling at par, because the bond price is equal to the par value

Price of bond 3 = RM11,240.90 Bond is selling at a premium because the bond price is more than the par value

The yield to maturity (YTM) is the estimated rate of return. The yield to maturity assumes that the buyer of the bond will hold the bond until its maturity date, and will then reinvest each interest payment at the same interest rate. Therefore, the yield to maturity includes the coupon rate that's within its calculation. The yield to maturity is also known as the redemption yield.

The YTM will be:

= [1800 + (18000 - 21800)/10] / [(18000 + 21800)/2]

= (1800 - 380)/19900

= 1420/19900

= 7.14%

Therefore the values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively and the YTM is 7.14%

Learn more about bonds on:

brainly.com/question/25965295

#SPJ1

You might be interested in

4. What experiments did Chen carry out to come up with these conclusions?

algol13

He came up with knowledge of his own and ideas to figure out the conclusions

5 0

3 years ago

Supply curves tend to be

Blababa [14]

Maybe the answer is b

8 0

3 years ago

The 2016 balance sheet of Whole Foods Market reports operating assets of $5,489 million, operating liabilities of $2,066 million

frosja888 [35]

Answer:

Correct option is E.

Explanation:

There is not enough information to calculate the amount.

Net operating asset= Operating Assets - Operating Liabilities

=$5489 Million - $2066 Million

=$3423 Million

Hence Average net operating assets can't be calculated by given information.

8 0

3 years ago

blistre company operates on a contribution margin of 30% and currently has fixed costs of $550,000. next year, sales are proj

Ivan

Blistre Company operates on a contribution margin of 20% and currently has fixed costs of $500,000. Next year, sales are projected to be $3,000,000. An advertising campaign is being evaluated that costs an additional $80,000. $400,000 sales increases to justify the additional expenditure.

An advertising campaign is a series of commercial messages that percentage a single concept and subject which make up an integrated advertising verbal exchange. An IMC is a platform in which a set of people can organization their thoughts, beliefs, and ideas into one large media base.

What is an advertising campaign?

An advertising campaign campaign is a advertising ad or a fixed of commercials centered at particular target market segments. Their fundamental goal is to increase conversions. The fulfillment of an ad marketing campaign relies upon on the choice of a channel, approach, and approaches.

Why is advertising campaign important?

Advertising campaign are essential because they are able to supply your enterprise a targeted edge when it comes to marketing and advertising. Of path, the intention is not to beat out different companies, but to find the folks who will maximum benefit out of your commercial enterprise.

What makes an advertising campaign successful?

Advertising campaign has the desired qualities of sturdy credibility, high audience attention ranges, and friendly audience reception. It capabilities open-ended communique with questions and answers approximately the product, psychological incentives to purchase, memorability, efficiency and frequency.

Learn more about advertising campaign here :- brainly.com/question/25754542

#SPJ4

8 0

2 years ago

A company uses return on investment (ROI) to measure the performance of its business units. The company manufactures and distrib

dalvyx [7]

Answer: B. Decrease

Explanation:

Return on investment refers to the ratio between the net income and investment. It should be noted that a high return on investment implies that the investment's gains compare favourably to the cost.

In this scenario, since a large amount of raw material was bought in advance and stored in the manufacturing plant inventory, this will lead to an increase in the cost of production which therefore will reduce the return in investment.

Therefore, the correct option is B.

6 0

3 years ago