The annual YTM will be 3.07% if the bonds make semiannual payments and sell for 94 percent of par value.
<u>Given data</u>
Coupon rate (CR) = 5.4%
Current price (B0) = 94%
Assuming maturity value (MV) = 100%
Years to maturity (n) = 15.
<h3>What is the Annual YTM?</h3>
YTM = CR + ((MV − B0)/n) / ((MV + B0)/2)
YTM = 5.4% + (100% - 94%)/15) / (100% + 94%)/2)
YTM = 0.054 + (-0.03866666666) / 0.97
YTM = 0.01533333334 / 0.97
YTM = 0.015333 * 2
YTM = 0.030666
YTM = 3.07%
In conclusion, the annual YTM will be 3.07% if the bonds make semiannual payments and sell for 94 percent of par value.
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Answer:
Limited liability partnership (LLP) / limited liability company (LLC)
Explanation:
Limited liability partnership and limited liability companies work very similarly and their main characteristics are:
- they are separate legal entities, this means that their owners are separate from them.
- since they are separate legal entities, the owners have limited liability
- they are not taxed directly, they act as pass through entities and their owner's pay income taxes
- they both need to be incorporated by the state government as distinct legal entities
Answer:
d.$75,952 decrease
Explanation:
We simply use the Accounting Equation to determine the period's change in total liabilities.
So, the Accounting Equation states :
Assets = Equity + Liabilities
also
Assets - Equity = Liabilities
therefore,
($49,928) - $26,024 = Liabilities
(- $75,952) = Liabilities
conclusion
The period's change in total liabilities is $75,952 decrease
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