Answer:
Yield to Maturity(YTM) = 3.47%
Explanation:
<em>The yield to maturity is the required rate of return (discount rate) that would equate the price of the bond and cash outflow expected from the bond. The yield on the bond can be determined as follows using the formula below: </em>
YTM = C + F-P/n) ÷ 1/2 (F+P)
YTM-Yield to maturity-
C- coupon
F- Face Value
P- Current Price
DATA
Coupon = coupon rate × Nominal value = 1,000 × 8%× 1/2=40(note we divide by 2 because interest is paid semi-annually)
n= 4×2 = 8 (note there 2 half months in a year)
Face Value = 1000
YM-?, C-40, Face Value - 1,000, P-103.75/100× 1000 = 1037.5
YM = (40 + (1000-1037)/8) ÷ ( 1/2× (1000 + 1037.5 ) ) =0.0347
YM = 0.0347
× 100 = 3.47%
Yield to Maturity = 3.47%
<span>This is the competing conflict handling style, because Orna has given a win-lose response to the customer without room for accommodation, compromise, avoidance, or collaboration.</span>
The fundamental purpose of the starting phase of a project is ________.the answer is: (s<span>etting the ground rules for the collaboration)</span>
It would be the Yeni may either appreciate amor depreciate
Answer:
360
Explanation:
Given:
Face Value of the bond = $4500
The fixed rate of interest is r = 8%
If f Sarah were not to cash in the bond tomorrow, it means she have the value of $4500 after 3 years. But tomorrow she were to cash, so the interest she lose is:
I = FV*r = 4500*8% = 360