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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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11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.

The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

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The amount of prepaid insurance which is given in the question is for two years. We have to compute for one year so we divide the total amount by number of years

= $7,300 ÷ 2 years

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andrew11 [14]
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8 0
3 years ago
G MC Qu. 87 When is a goodwill impairment loss... When is a goodwill impairment loss recognized?
marin [14]

Answer:

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6 0
3 years ago
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almond37 [142]

Answer:

$20

Explanation:

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ohaa [14]

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