1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marina86 [1]
2 years ago
10

15-year bonds 2 years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bonds currently sell for

103 percent of par value, what is the YTM?
Business
1 answer:
svp [43]2 years ago
8 0

Answer:

The answer is 6.95%

Explanation:

We are looking for Yield-to-maturity (YTM). YTM can also be called rate of return or discount rate.

Note: The 15 -year bond was bought 2 years ago, meaning it remains 13 years

N(Number of periods) = 26 years ( 13years x 2)

I/Y(Yield to maturity) = ?

PV(present value or market price) = $103

PMT( coupon payment) = $3.65( [(7.3percent ÷ 2)x $100)]

FV( Future value or par value) = $100

We are using a Financial calculator for this.

N= 26; PMT = 3.65; FV= $100; CPT PV= -103, CPT I/Y

I/Y = 3.47.

3.47% is for semiannual rate

Therefore, annual rate is 6.95% (3.47% x 2)

You might be interested in
A will is the final declaration of how a person desires to have her or his property disposed of after death and must follow exac
Aleksandr-060686 [28]

Answer:

The above statement is<u> true</u>.

Explanation:

As said in above statement , A will is the final declaration of how  person desires to have her or his property disposed of after death and must follow exactly the requirements of state law to be effective. A will is good , as it express your feelings , that to whom you want to give your property after your death . It is always provided to that person you choose.

It protect your children from become homeless after your death. It also protect your property from being contested. A will is only valid if it is having number of years after the persons death.

A will should not include future plans, gifts and request , life insurance etc.  

8 0
3 years ago
A company manufactures three products, A, B, and C. The following information is available about the products on a per unit basi
borishaifa [10]

Answer:

Hi the demand for each  product for this question is missing, however, i have provided step by step approach to solving the problem below .

Explanation:

First Calculate the contribution per unit of each product

                                                        A                           B                            C

Sales price                                  $65.50                $57.50                  $75.25

Less Total variable cost            ($28.85)              ($26.50)                ($38.95 )

Less Direct material cost            ($11.25)                ($8.90)                 ($22.75)

Contribution                                $25.40                 $22.10                   $13.25

Calculate the contribution per limiting factor of each product and rank the products

<em>contribution per limiting factor = contribution per unit ÷ quantity per limiting factor per unit</em>

                                                        A                           B                            C

Contribution                                $25.40                 $22.10                   $13.25

Quantity of limiting factor             4.65                      6.3                          5.9

Contribution per limiting factor   5.46                      3.51                        2.25

Ranking                                            1                           2                             3

Allocate the limiting factor according to the limiting factor

The company will on produce Product A as this is the most profitable.

Contribution =  $25.40

7 0
3 years ago
Country A prohibits trade with Country B due to political reasons. This is an example of _____. Country C restricts the number o
aleksandrvk [35]

The answer would be C. Embargo, a Quota

6 0
2 years ago
Read 2 more answers
lYour friend says, "I have some extra money, but I'm not sure if I should save or invest it." What key questions would you ask y
JulijaS [17]
I prefer investing money you can save it too
3 0
3 years ago
Keitaro, a university administrator, needs to send an official memo to the directors of the registration, advising, and financia
yuradex [85]

Considering the situation described above, to determine who should receive his memo, Keitaro would need to consult "<u>Organization Charts</u>."

This is because an <u>Organization Chart</u> is a pictorial representation that shows the structure of an organization.

It usually depicts those or the top ranks at the top, while the lower ranks are placed accordingly.

It also shows the relationships and positions or jobs of the ranks or individuals presented on the organization charts.

Organization charts is often referred to as organogram.

Hence, in this case, it is concluded that the correct answer is option A. "<u>organization chart</u>."

Learn more here: brainly.com/question/2920544

6 0
2 years ago
Other questions:
  • Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again
    9·1 answer
  • Assuming a 365-day year, Bush Industries calculated an average of 47 days to collect its accounts receivable in 2019. During 201
    8·1 answer
  • Garland induces Jules to enter into a contract for the purchase of a Chef’s Burger House restaurant. Garland knowingly misrepres
    5·1 answer
  • A partial list of a corporation's accounts shows the following account balances: Retained earnings, $300,000 Treasury stock, $10
    14·1 answer
  • Accounts receivable had a debit balance of $4,000 at the beginning of the period, and a debit balance of $3,000 at the end of th
    7·1 answer
  • Chip is a veteran who fought in Desert Storm. He has just retired from the military. He has been told he qualifies for a propert
    12·1 answer
  • What is the importance of international law to businesses engaged in international trade?
    12·1 answer
  • Discuss the pros and cons of four performance appraisal tools​
    7·1 answer
  • How will the rapo rate cut affect the economy?​
    5·1 answer
  • a realistic and cost-effective starting point for emergency services in low-income countries could be: a. major expansion of eme
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!