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
s344n2d4d5 [400]
3 years ago
5

Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year m

aturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?
a. 8.56%
b. 9.01%
c. 9.46%
d. 9.93%
e. 10.43%

Business
1 answer:
marissa [1.9K]3 years ago
8 0

Answer:

b. 9.01%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = $1,080

Future value or Face value = $1,000  

PMT = 100

NPER = 15 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the yield to maturity is 9.01%

You might be interested in
What are some common motivations of financial statement fraud examination?
WINSTONCH [101]

Answer:

To support a high stock price, to support a bond or stock offering, or to increase the company's stock price.

Explanation:

The motivation to publish fraudulent financial statements varies depending on the situation. A common theme in many cases of fraud is the attempt to improve the reported financial information to maintain high stock prices, support bonds or stock quotes, or raise a company's stock price. In many companies that published fraudulent financial statements, senior executives held significant stocks or stock options, and lowering the price of the stock would significantly reduce personal net worth or make worthless options. As a result, senior management had to maintain the high share price and therefore needed high returns to maintain the high share price. Investors value reports that increase profits each year. Indeed, the decline in earnings can significantly lower a company's stock price. Sometimes fraudulent financial reports cause line managers to exaggerate the results to meet the company or other expectations. Sometimes the cost of failure in corporate governance is high, and when it comes to choosing between failure and fraud, some managers quickly turn to fraud.

5 0
3 years ago
So, I’ve decided to leave Brainly. I had a great time helping people, so I hope you have a great day. :) use this time to miss m
liberstina [14]

Answer:

why now when people still need help alot of help

Explanation:

6 0
3 years ago
Read 2 more answers
Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upwa
solniwko [45]

Answer:

Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $62 per unit.

6 0
3 years ago
When a liability is first recorded, it is _____. reported as a current liability. reported as a long-term liability. measured in
bekas [8.4K]

Answer:

measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.

Explanation:

According to my research on financial accounting terms, the term liability is defined as the state of being legally responsible for something (dept such as auto or student loans). When a liability is first recorded it is measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. Basically calculating the amount of future payments that need to be made by the dept owner.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
4 years ago
If you own a business, the loan payment, rent, and your salary are examples of "
Effectus [21]
The general liabilities? could just be liabilities.
4 0
3 years ago
Read 2 more answers
Other questions:
  • Wonder Corporation declared a common stock dividend to all shareholders of record on September 30, 20X3. Shareholders will recei
    7·1 answer
  • when gathering information, which of the following tasks might you need to perform? a. fill out forms, follow procedures, and ap
    11·2 answers
  • Described below are certain transactions of Sheridan Corporation. The company uses the periodic inventory system.
    8·1 answer
  • Which of the following creates a bull spread? A. Buy a low strike price call and sell a high strike price call B. Buy a high str
    8·1 answer
  • Heidi, the CEO and founder of Camp Bow Wow, believes that the best way to get people committed to a vision and executing that vi
    7·1 answer
  • On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing
    8·1 answer
  • Advantages of road transport over rail transport
    14·1 answer
  • Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2017. The following transactions occurred during th
    15·1 answer
  • Suppose there is a central bank
    13·1 answer
  • Crane Company estimates its sales at 80000 units in the first quarter and that sales will increase by 8000 units each quarter ov
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!