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fomenos
3 years ago
14

Meacham Enterprises' bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15

-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)
Business
1 answer:
Flauer [41]3 years ago
7 0

Answer:

Yield to call (YTC) = 7.64%

Explanation:

Yield to call (YTC) = {coupon + [(call price - market price)/n]} / [(call price + market price)/2]

YTC = {135 + [(1,050 - 1,280)/5]} / [(1,050 + 1,280)/2]

YTC = 89 / 1,165 = 0.07639 = 7.64%

Yield to call is how much a bondholder will earn if the bond is actually called, and it may differ from yield to maturity since the call price is generally higher than the face value, but the yield to maturity generally is longer than the call period.

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If held in captivity you should communicate and organize with the community of fellow united states government and allied captiv
loris [4]

Principle III of the department of defense states, 'If held in captivity you should communicate and organize with the community of fellow united states government and allied captives and avoid actions that may harm them.'

The National Security Act of 1947 established the National Military Establishment, which was replaced by the Department of Defense (DOD) (50 U.S.C. 401). The executive branch department of the federal government known as the United States Department of Defense is in charge of organizing and managing all government departments and agencies that are directly involved with national security and the American armed forces. The secretary of defense, a cabinet-level official who answers directly to the American president, is in charge of the Department of Defense. The Department of the Army, the Department of the Navy, and the Department of the Air Force are the three military departments that report to the Department of Defense.

More about the department of defense brainly.com/question/14990786

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5 0
1 year ago
Miguel, Inc. reported net income of $2.5 million in 2022. Depreciation for the year was $160,000, accounts receivable decreased
Valentin [98]

Answer:

$2,730,000

Explanation:

The opening cash balance is netted off the cash flows from all activities namely; Operating, investing and financing activities to get the closing cash balance.

The operating activities includes elements such as net income, depreciation and amortization, changes in working capital etc.

Given;

Net income = $2,500,000

Depreciation = $160,000

accounts receivable decrease = $350,000 (inflow of cash)

accounts payable decrease =  $280,000 (outflow of cash)

net cash provided by operating activities using the indirect approach

= $2,500,000 + $160,000 + $350,000 - $280,000

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4 0
3 years ago
Which of the following is one of the main things to consider when evaluating a business opportunity?
nikitadnepr [17]
<h2>Answer</h2>

D) Customer demand for the product

<h3>Explanation</h3>

For a business opportunity to prosper and grow ahead, it is imperative that the offered product or service has actual demand present. If the demand is present, the sales will be automatically achieved. This will result in higher sales and therefore more generation of profits in the future. Without optimal demand present in the economy, it is not worth putting time and efforts in a business.

7 0
3 years ago
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In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0
3 years ago
If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for
QveST [7]

Answer:

C. 17.5 years

Explanation:

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