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Lemur [1.5K]
3 years ago
13

A Treasury bond that settles on August 10, 2016, matures on September 27, 2021. The coupon rate is 4.6 percent and the quoted pr

ice is 107:7. What is the bond’s yield to maturity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
BaLLatris [955]3 years ago
7 0

Answer:

3.09%

Explanation:

Yield to maturity = [C + ((F - P) / n)] / [(F + P) / 2]

Face value = $1,000

C = Coupon or interest payment = $1,000 * 4.6% = $46

P = quoted price = $1,000 * 107% = $1070

n = Years to maturity = 5

Therefore, we have:

Yield to maturity = [46 + ((1,000 - 1,070) / 5)] / [(1,000 + 1,070) / 2] = 0.0309. or 3.09%  

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Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed
REY [17]

Answer: $700,000

Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.

Retained earnings break even can be computed as follows :-

Break\:even=\frac{retained\:earnings}{equity\:ratio}

where,

retained earnings = net income (1- payout ratio)

                              = $525,000 (1 - 60%)

                              =  $210,000

therefore,

Break\:even=\frac{210,000}{0.3}

=$700,000

3 0
3 years ago
When qualifying a buyer using the Fannie Mae guidelines, what is the ratio allowed for the amount of money for housing expense c
vfiekz [6]

Answer:

28%

Explanation:

Most mortgage lenders, including Fannie Mae, use the 28/36 rule. That rule states that a family should spend no more than 28% of the gross monthly income (GMI) on housing expenses, and pay no more than 36% of GMI to cover debts (mortgage payments are included in this 36%).

Statistics show that households that do not comply with the 28/36 rule, tend to have difficulty paying back loans.

8 0
3 years ago
Other things equal, demand tends to be more __________ the more substitutes there are available, and more _________ when the hig
melamori03 [73]

Answer:

Elastic/ Inelastic

Explanation:

Price elasticity of demand is a tool use to measure in economics to show the elasticity, or responsiveness, of the demanded quantity of goods or services to increase in its price. When the price of a good or service changes, inelastic demand is when the buyer's demand does not change when the price of the good or service changes.

6 0
3 years ago
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The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can
kozerog [31]

Answer:

Controllable variance

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Therefore the above represents the answer

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2 years ago
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3 years ago
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