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Irina18 [472]
3 years ago
13

Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.6 percent. The bond sells for $

958.56 and matures in 20 years. The par value is $1,000. What is the YTM of the bond
Business
1 answer:
JulijaS [17]3 years ago
5 0

Answer:

The answer is 5.96%

Explanation:

This is a semiannual paying coupon, meaning it makes payment twice a year.

N(Number of periods) = 40 years ( 20years x 2)

I/Y(Yield to maturity) = ?

PV(present value or market price) = $958.56

PMT( coupon payment) = $28 ( [5.6percent÷ 2] x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 40; PV = -958.56 ; PMT = 28; FV= $1,000; CPT I/Y

I/Y = 2.98%. Please note that this is for semiannual.

Therefore, annual YTM = 5.96%(2.98% x 2).

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Marat540 [252]

Answer:

The correct answer is True.

Explanation:

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Accounting estimates are usually linked to the uncertainty surrounding the consequences of events that have occurred, or also with the occurrence or non-occurrence of uncertain events in the future.

The social administrators and management have to make decisions on accounting estimates of some items, members of the financial statements, since there are no registration and valuation rules that offer a solution for their exact determination. From here, in order to approximate the amount of these items, value judgments will be unavoidably used.

 

3 0
4 years ago
Business cycles are best defined as fluctuation in aggregate economic activity in which :a. the decisions of businesses are the
ludmilkaskok [199]

Answer: b. many economic activities expand and contract together in a recurring—but not periodic—fashion

Explanation:

The Business Cycle refers indeed to fluctuations in the business cycle related closely with the rise and fall in production output of goods and services in an economy.

It come with stages being Expansion, Peak, Recession, Depression, Trough, and Recovery. What is most interesting is that the movers behind the business cycle are not a singular entity but rather a series of Economic activities that are interconnected and move together. This is why some activities herald stages in the Business Cycle while some follow it. But they all have a role to play.

It is also very important to note that this is NOT a periodic occurence because it doesn't happen per period and neither can it be predicted but it happens. It is Recurrent but not periodic in other words.

7 0
3 years ago
Carol expects to receive $1,000 at the end of each year for 5 years. The annuity has an interest rate of 10%. The present value
Gre4nikov [31]

Answer:

$3,791

Explanation:

Given that

Expected amount received = $1,000

Number of years = 10 years

Rate of interest = 5

So, the present value of this annuity  would be

= Expected amount received × PVIFA factor at 5 years at 10%

= $1,000 × 3.7908

= $3,791

Refer to the PVIFA table

Simply we multiplied the expected amount received by the PVIFA factor

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ELEN [110]

Answer:

d

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Daydreaming is when a person is conscious (awake) and begins imaginative thinking or wishful thinking. Daydreaming usually occurs when a person is bored or performing a task.

While Priya was at work she was thinking about a party. Thus she was daydreaming

Satisficing is when a person does the minimum necessary to attain a goal

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3 years ago
"If a portfolio manager believes that the market will be stable over the next 6 months, to generate extra income, the manager co
nata0808 [166]

Answer and Explanation:

For earning an extra income, the options contracts could be sold at the premium i.e. collected or in short word sell naked index calls.

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3 years ago
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