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vagabundo [1.1K]
3 years ago
12

Atlantis Fisheries issues zero coupon bonds on the market at a price of $489 per bond. These are callable in 6 years at a call p

rice of $580. Using semiannual compounding, what is the yield to call for these bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
nataly862011 [7]3 years ago
8 0

Answer:

the yield to call for these bonds is 5.7705 %

Explanation:

In this question, we are required to find the yield to call on the bonds

The Information we have is as follows :

PV = 489

PMT = 0

FV = $580

N = 6

P/YR = 2 ( semiannual compounding )

YTC = ?

Using a Financial Calculator and inputting the appropriate values as above, the yield to call is 5.7705 %

You might be interested in
How does "cost" differ from "opportunity cost"?
sergiy2304 [10]

Answer:

"cost" represents the money paid for something and "opportunity cost" is the value of the thing given up when one chooses something else.

Explanation:

I got this answer from a different website because I'm not very good at explaining stuff like this but I took financial math and this is a good answer.

6 0
3 years ago
The income statement for Electronic Wonders reports net sales of $91,628 million and cost of goods sold of $69,148 million. An e
irakobra [83]

Answer:

1.  Cash received from customers = $89,908

2.  Cash paid to suppliers = $71,972

Explanation:

                                                                             Amount in millions

Net sales                                                         $91,628

Less: Increase in accounts receivable                  $(1,720)

Cash received from customers                          $89,908

                                                                           Amount in millions

Cost of Goods sold                                       $69,148

Add: Increase in inventory                               $870

Add: Decrease in accounts payable                $ 1,954

Cash paid to suppliers                                        $ 71,972

7 0
3 years ago
The demand for subassembly S is 8080 units in week 7. Each unit of S requires 11 unitnothing of T and 11 unitnothing of U. Each
slavikrds [6]

Answer:

Please find the detailed answer as follows:

Explanation:

Consider the table attached in the excel.

The above are the requirements of the units of material if demand of 8080 units of S has to be completed.

The requirement of units of U for maintenance is given in the second table.

As the lead time for S is two weeks the components should be ready by the fifth week.

As the lead time for components T and U both is 2 weeks their components should be ready by the third week.

Hence in the first week the required number of units of V, W, Y and Z are to be ordered as all of them are required in the third week.

The required number of units of X are to be ordered in the second week to be ready in third week.

The required units of U, Y and Z are to be ordered considering the requirement to make S plus the maintenance requirements.

Download xlsx
6 0
3 years ago
Steady As She Goes Inc. will pay a year-end dividend of $3.40 per share. Investors expect the dividend to grow at a rate of 5% i
Bezzdna [24]

Answer:

a.

15%

b.

29.57

Explanation:

The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach. The DDM values the stock based on the preset value of the expected future dividends from the stock. The price of the stock today under this model is,

P0 = D1 / r - g

Where

P0 = Price of stock

D1 = Future Dividend

r = Expected rate of return

g = Growth rate

a.

As we have the price of the price of the stock, we need to calculate the expected rate of return by extracting the formula.

r = (D1 / P0) + g

As per given data

P0 = Price of stock = $34

D1 = Future Dividend = $3.40

g = Growth rate = 5% = 0.05

Placing Values in the formula

r = ( $3.4 / 34 ) + 0.05

r = 0.15  = 15%

b.

As per given data

D1 = Future Dividend = $3.40

g = Growth rate = 5% = 0.05

r = Expected rate of return = 16.5%

Placing Values in the formula

P0 = D1 / r - g

P0 = $3.40 / (16.5% - 5%)

P0 = $29.57

3 0
4 years ago
A _____ is an employment test that evaluates your specific job-related abilities, such as typing speed. It is recommended that y
Tpy6a [65]
B. computerized pre-employment test
6 0
3 years ago
Read 2 more answers
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