If you write a check for an amount greater than your account balance, the result will be ______

A 4.75 percent coupon municipal bond has 20 years left to maturity and has a price quote of 101.30. The bond can be called in ei

Vladimir79 [104]

Answer:

Answer is given below.

Explanation:

Par value of bond = $ 5000

Coupon rate = 4.75% * 6 / 12 = 2.375% Per period

Term = 20Years *2 = 40 Periods

Current price of bond = Par value * 101.30% = $5,000 * 101.30% = $5,065

Callable price = Par value + Call premium = $5,000 + $5,000 * 4.75% = S5,237.5

Callableterm = 8 Years * 2 = 16 Periods

Couponamountperperiod =Parvalue • Couponrate = $5000*2.375% = $118.75

Current yield = Coupon amount /Current price = $118.75/$5,065 = 0.023445212 = 2.345%Per period Rounded)

Currentyield = 2.345%Perperiod *2 = 4.69%Perannum

YTM = [Coupon amount + (Maturity value - Current price ) / Term] / [(Current price + Maturity value ) /2]

= [$118.75+($5,000-$5,065)/40]/[($5,065+S5,000)/2]

= $117.125 / $5032.5

= 0.023273721 = 2.33%Perperiod

YTM = 2.33% * 2 = 4.66% Per annum

Tax rate = 36%

After tax equivalent yield YTM (1 -Tax rate) = 4.66%(1-36%) = 2.9824% Per annum

Yield to call (YTC) = [Couponamount+(Call price - Current price)/Callable Term/ [(Current price+Call price)/2]

= [$118.75 + ($5,237.5 - $5,065)/16 ] / [($5,065 + $5,237.5)/ 2]

= $129.53125/ $5151.25

= 0.025145596 = 2.515%Per period (Rounded)

YTC = 2.515%2 = 5.03%Per annum (Rounded)

4 0

3 years ago

Read 2 more answers

A fast internationalization strategy for better generation has some associated risks. What are these risks?

Alex_Xolod [135]

Answer: Political risks eg High taxes

Economic risks eg fluctuation of exchange in currency.

Please see below for further explanation.

Explanation:

Internationalization strategy is the plan by an organization to expand beyond the domestic market to become globally visible in another country or countries market.

The risks associated Associated when a company, better generation tries to expand globally include

1.)Political risks:Political risk occurs when target countries policies change or fluctuates in such a way to negatively affect a business.

Some of the political risks include

---Instability in foreign country's governments due to corruption

---Government regulations eg High taxation, High tariff quotas

-----Trade barriers etc.

2.Economic Risks here refers to the conditions in the foreign nation's economy that affect a company's financial gains.

Some of the Economic risk include

-fluctuations in the value of currencies exchange.

-Inflation

-Quality of basic infrastructure in terms of electricity, transportation, accessible to water etc as the case may be.

--Labor and differences in wages.

7 0

4 years ago

Which of the following loans will typically offer the lowest interest rate

EleoNora [17]

<span>Student loans, which are given to those in college by the federal government, are most commonly known as the loans with the small interest rates. These loans are fixed rates and will not increase overtime, they just accumulate monthly untilt he loans are paid off. </span>

5 0

3 years ago

Read 2 more answers

Why must business market managers be adept at analysing understanding, building & playing an active part in work teams worki

WINSTONCH [101]

Business market managers be adept at analyzing understanding working relationships & business network because they want to promote and improve the production.

<h3>What is Business?</h3>

Business refers to the activity carried out by the individual or the group of the people in order to produce goods and services for generating the profits.

The Business Market manager helps to promote the business and the improve the production ability in the employees by maintaining the good relationship with them.

There main goal is to develop the business network by connecting with the customers. They builds more customers by maintaining the old customers and building the new potential customers.

Learn more about the business here:

brainly.com/question/15826604

#SPJ1

5 0

2 years ago

Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A

wariber [46]

Answer:

$18.15

Explanation:

Activity based costing is a costing techniques used to assign cost in management account to the various units of a company the estimated activity level in the departments as a basis for cost apportionment or allocation.

Given that

Cost Pool Total Cost Product A Product B Total Activity

Activity 1 $ 18,000 700 300 1,000

Activity 2 $ 24,000 500 100 600

Activity 3 $ 60,000 800 400 1,200

The total cost for product A

= 700/1000 * $18,000 + 500/600 * $24,000 + 800/1200 * $60000

= $12,600 + $20,000 + 40,000

= $72,600

Total units for A = 4000 units

cost per unit of Product A is closest to

= $72,600/4000

= $18.15

5 0

3 years ago

If you write a check for an amount greater than your account balance, the result will be _______.