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
fomenos
4 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]4 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.

You might be interested in
Why are social security and medicare considered highly efficient programs? multiple choice they are administered at the local le
gregori [183]

The largest and most expensive social welfare programs in America are Social Security and Medicare. Medicare receives the funding the most, and it is not tested program while the social security is the example of entitlement. The Social Security Act of 1935 brought government into the equation of the obligations of one generation to another.

6 0
4 years ago
At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $11,000, while the company’s total assets equal $1,410,000.
erastovalidia [21]

Answer:Worthy journal $

Date

March 14, 2022

Bad debt Dr 2600

Receivable Cr 2600

Narration. Record of receivables written off to income account on account becoming unrecoverable.

Explanation:

The direct method of written off bad debts do not make provision for estimate of receivables that are likely to go bad in which the estimate is recognised as debit to income statement and the corresponding credit entry is used to reduce the receivables, with adjustment been made at the year end for variances.

In the direct method the actual bad debts is debited in the income s statement and credited to the receivables accounts.

6 0
3 years ago
A local art gallery keeps information on its customers regarding their preferences forcertain artists as well as the style of ar
notsponge [240]

Answer:

A - Value co - creation

Explanation:

Value co - creation is a strategy that promotes and encourages active involvement from the customer to create on-demand and made-to-order products. with this strategy,  consumers get exactly what they want and are involved in making it happen. So the Art gallery using such information is clearly using a value - co creation strategy to build loyalty among its customer.

4 0
3 years ago
Where did the indestrial revolution starts and why did it beinging there​
Marat540 [252]

Answer:

it began in 1760. it started there because of the new inventions that were made like the cotton gin, electricity and other inventions. More and more countries got access to these inventions and they became more and more industrialized and urban.

5 0
2 years ago
In the enumeration method the project schedule is calculated many times (perhaps 1,000 or more), and each time, the estimate for
Illusion [34]

The given statement " In the enumeration method the project schedule is calculated many times (perhaps 1,000 or more), and each time, the estimate for a particular activity is generated based on the likelihood of that time as determined by the project manager " is FALSE

Explanation:

Enumeration methods are used for solving combinational problems of optimisation. Combinatory optimization issues are difficulties where choices are binary, in which an object is selected or is not selected

(e.g. line, edge, node).

Basic schedule management strategies include starting and finishing dates for work in a project. Here the shadow bars stretch from the critical path-determined beginning date.

The Enumeration system includes census administration, handling money, computer awareness, Web surveying, information on housing records, post-enumeration analysis and web-based input and distribution of field information.

3 0
3 years ago
Other questions:
  • A buyer has $20 to spend on rice and beans. Rice costs $2 and beans cost $3 per pound. The buyer is buying the combination of 4
    14·1 answer
  • According to the keynesian model, what are the two components of consumption spending? what factors determine how consumption ch
    13·1 answer
  • ) Suppose I ask you to pick any four cards at random from a deck of 52, without replacement, and bet that if at least one of the
    10·1 answer
  • Tim spends his income on donuts (D) and coffee (C). Coffee is $2 per cup and donuts are $1 each. Assume that Tim has $10 to spen
    6·1 answer
  • Stan is a real estate broker in Colorado. He has identified a property for a fast food outlet and has asked four friends to cont
    6·2 answers
  • Santa Claus is trying to forecast demand for coal this Christmas. For the past 300 years, the numberof naughty children (who wil
    10·1 answer
  • In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first pac
    14·1 answer
  • TVs and VCRs are:<br><br> A. needs<br> B. wants<br> C. resources<br> D. markets
    8·2 answers
  • An assessment of costs and benefits inevitably involves
    15·1 answer
  • A professional sports team that earns more annual revenue than a small-market team is a _____________, fill in the blank,.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!