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Marina86 [1]
3 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]3 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)

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Answer:

B. $1673920

Explanation:

First calculate Total loss

$2000000 loss from disposal of a component of the business and loss of $92400 from strike by the employees of a supplier

$2000000 + $92400 = $2,092,400

20% of the loss =

20% × $2,092,400

= $418,480

Therefore the effect of these events and transactions on 2020 net income net of tax would = Total loss - 20% of total loss

$2,092,400 - $418,480

= $1,673,920

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3 years ago
Poppy is interested in computer networking. What online resource can she use to find out the education and training for this car
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Extreme Adventurer, an outdoor nature magazine, marketed to potential customers who recently purchased camping equipment and fou
MrRa [10]

Answer:

potential customers who recently purchased camping equipment and four-wheel drive trucks.

Explanation:

  • The call to action has a huge potential hidden in reaching out to the customers and making them call for outdoor nature and adventure.
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  • Those people who usually stay at home and are unable to move out due to some reason can use their purchased camping equipment and four-wheel-drive trucks.
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3 years ago
A firm has a net profit/pretax profit ratio of .6, a leverage ratio of 1.5, a pretax profit/EBIT of .7, an asset turnover ratio
Alenkinab [10]

Answer:

The answer is A.15.12%.

Explanation:

Please find the below for explanation and calculations:

We have EBIT = Pretax profit /0.7 = Net profit / (0.6 x 0.7) = 0.42 x Net Profit

=> Net profit / Sales = Profit margin =  0.42 x EBIT/ Sales = 0.42 x Return-on-sales = 2.52%;

Leverage ratio = Asset/ Equity = 1.5;

Sales / Asset = asset turn over ratio = 4;

Apply the Dupont model we have:

Return on Equity = Leverage ratio x Profit Margin x Leverage ratio = 2.52% x 1.5 x 4 = 15.12%.

Thus, the answer is A. 15.12%.

6 0
3 years ago
Recently, Raj switched jobs from a large firm to a medium-sized firm. As one of four project managers at the new firm, Raj recog
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According to Maslow's hierachy of needs, the most important hierarchy for Raj is esteem, which symbolizes the individual's desire to be valued by himself and others in society and the workplace.

Maslow developed the pyramid of the hierarchy of human needs, with the aim of explaining how individuals are moved to take actions to meet their needs according to a pre-established order.

The pyramid of needs is divided into five parts, and comprises the most basic needs, which are biological, to the most complex, which are psychological needs. Are the:

  1. Physiological needs.
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Therefore, Raj finds himself in the esteem stage, where he is looking for respect, status and recognition. When his esteem needs are met, he will move into the self-actualization hierarchy, where he will demonstrate greater creativity, talent, and personal development.

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