Answer:
The proceeds that Mobilee Oil Company receives is $10,149.65
Explanation:
Value upon maturity=principal amount+interest of 120 days
Value upon maturity=$10,000+(120/360*8.5%*$10000)
Value upon maturity=$10,000+$283.33
Value upon maturity=$10,283.33
the value is receivable in 120 days time
On May 1st , the note has earned 68 days interest(29 days in March,30 days in April plus 9 days in May)
Hence the interest days lost is 52days(120-68)
Discounted amount =$10,283.33-(52/360*9%*$10,283.33)
=$10,283.33-$133.68
=$10,149.65
Answer: Corporate charter
Explanation:
The corporate charter is also referred to as the articles of incorporation. It is a document that contains the major components that make up a company, like the objectives of the company, the structure of the company, the number of shares the company has for sale and the planned operations of the company.
When a corporate charter is approved by the state, then the company will become a legal corporation. The corporate charter also contains the names of the people that are involved in its formation.
The answer is service encounters. The explanation behind
this is customers review services centered on the entire arrangement of steps
that make up the service procedure. Businesses frequently use a customer
contact review to concentrate on these steps or also identified as service encounters.
Yield to maturity (YTM) = [(C+(F-P)/n) / ((F+P)/2)]*100
Given:
Duration/term = n = 4 year
Interest rate or coupon= 4%
Price = P = 98
To find: Yield to maturity
Face value of the bond = F = 100
So, interest/C = 4% of 100= 4
Solution:
Yield to maturity (YTM) = [(C+(F-P)/n) / ((F+P)/2)]*100
Now, putting values in the formula,
[(4+(100-98)/4) / ((100+98)/2)]*100 Answer = 4.54% is the yield to maturity
Answer:
a)10.35% b) 10.13%
the b. What is the bond's yield to call?
Explanation:
a)K = N
Bond Price =∑ [(Annual Coupon)/(1 + YTM)^k] + Par value/(1 + YTM)^N
k=1
K =10
1100 =∑ [(12*1000/100)/(1 + YTM/100)^k] + 1000/(1 + YTM/100)^10
k=1
yield to maturity% = 10.35
b) K = Time to call
Bond Price =∑ [(Annual Coupon)/(1 + YTC)^k] + Call Price/(1 + YTC)^Time to call
k=1
K =4
1100 =∑ [(12*1000/100)/(1 + YTC/100)^k] + 1060/(1 + YTC/100)^4
k=1
Yield to call % = 10.13