Answer:
YTM = 6.51%
YTC = 6.40%
Explanation:
We need to solve using excel goal seek or bond formulas to generate the yield (interest rate) which matches the future couponb and maturity payment with the current selling price of the bond:
Present value of the coupon
C 40.000 (1,000 x 8% / 2 payment per year)
time 28 (14 years x 2 payment per year)
rate 0.032529972 (generate using goal seek tool)
PV $727.8688
Pv of the maturity (lump sum)
Maturity 1,000.00
time 28.00
rate 0.032529972
PV 408.06
PV c $727.8688
PV m $408.0612
Total $1,135.9300
As this is a semiannual rate we multiply it by 2
0.032529972 x 2 = 0.065059944 = 6.51%
We repeat the procedure with changing the time and end-value to adjust for the callabe conditions:
C 40.000
time 14 (7 years x 2 payment per year)
rate 0.032015131
PV $445.6984
Maturity 1,073.00 (call price)
time 14.00
rate 0.032015131
PV 690.23
PV c $445.6984
PV m $690.2316
Total $1,135.9300
Againg his will be a semiannual rate so we multiply by two:
0.032015131 x 2 = 0.064030263 = 6.40%
Base on the question which ask to compute the following ask in the following question and in my further computation, the answer would be the following.
A. 2.5 tire labors per labor hour
B. 0.025 tires per dollar input
C. 12%
I hope you are satisfied with my answer and feel free to ask for more if you have question and further clarification about the said question
Answer: B. Address the concerns of all members of the buying center with particular attention to the decision maker.
Explanation:
If a person is making an attempt to sell the Markham publishing, then he/she has to take into consideration all the possible factors that maybe able to affect each person in the buying center, but the factors affecting the decision maker should be given special consideration.
Thus, Address the concerns of all members of the buying center with particular attention to the decision maker.