Answer:
YTM = 8.93%
YTC = 8.47%
Explanation:
![P = \frac{C}{2} \times\frac{1-(1+YTC/2)^{-2t} }{YTC/2} + \frac{CP}{(1+YTC/2)^{2t}}](https://tex.z-dn.net/?f=P%20%3D%20%5Cfrac%7BC%7D%7B2%7D%20%5Ctimes%5Cfrac%7B1-%281%2BYTC%2F2%29%5E%7B-2t%7D%20%7D%7BYTC%2F2%7D%20%2B%20%5Cfrac%7BCP%7D%7B%281%2BYTC%2F2%29%5E%7B2t%7D%7D)
The first part is the present value of the coupon payment until the bond is called.
The second is the present value of the called amount
P = market price value = 1,200
C = annual coupon payment = 1,000 x 12% 120
C/2 = 60
CP = called value = 1,060
t = time = 6 years
![P = 60 \times\frac{1-(1+YTC/2)^{-2\times 6} }{YTC/2} + \frac{1,060}{(1+YTC/2)^{2\times 6}}](https://tex.z-dn.net/?f=P%20%3D%2060%20%5Ctimes%5Cfrac%7B1-%281%2BYTC%2F2%29%5E%7B-2%5Ctimes%206%7D%20%7D%7BYTC%2F2%7D%20%2B%20%5Cfrac%7B1%2C060%7D%7B%281%2BYTC%2F2%29%5E%7B2%5Ctimes%206%7D%7D)
Using Financial calculator we get the YTC
8.467835879%
![P = 60 \times\frac{1-(1+YTM/2)^{-2\times 10} }{YTM/2} + \frac{1,000}{(1+YTM/2)^{2\times 10}}](https://tex.z-dn.net/?f=P%20%3D%2060%20%5Ctimes%5Cfrac%7B1-%281%2BYTM%2F2%29%5E%7B-2%5Ctimes%2010%7D%20%7D%7BYTM%2F2%7D%20%2B%20%5Cfrac%7B1%2C000%7D%7B%281%2BYTM%2F2%29%5E%7B2%5Ctimes%2010%7D%7D)
The first part is the present value of the coupon payment until manurity
The second is the present value of the redeem value at maturity
P = market price value = 1,200
C = coupon payment = 1,000 x 12%/2 = 60
C/2 = 60
F = face value = 1,060
t = time = 10 years
Using Financial calculator we get the YTM
8.9337714%
Answer:
10.16%
Explanation:
The computation of the effective return for this investment is shown below:
Let us assume that we invested an amount in Australian dollars 100
The return is 8%
After one year, the amount is 108
Now the converting amount is 110.16 (108 × 102%)
Now the effective rate for this investment is
= 110.16 - 100
= 10.16%
Answer:
B) churn
Explanation:
The churn rate refers to the percentage of customers lost by a company (usually during a 1 year span) either because they stopped a subscription or stopped purchasing its products.
The churn rate can also refer to the percentage of employees leaving or quitting a company during one year.
Answer:
The equilibrium price falls and quantity increases
Explanation:
When the supply of food rises without a corresponding increase in demand , there would be an excess supply.
When there's excess supply, prices fall and the quantity produced rises.
I hope my answer helps you
Answer:
$200,000
Explanation:
As we know that
The net income is the income that is generated when we deduct all expenses incurred from all revenues generated that is reflected on the income statement
In mathematically,
Net income = Revenues earned - expenses incurred
= $450,000 - $250,000
= $200,000