What vehicle looks the same coming or going

A corporate bond has 22 years to maturity, a face value of $1,000, a coupon rate of 4.6% and pays interest semiannually. The ann

julia-pushkina [17]

Answer:

a. The answer is: $1,008.40

b. The bond's YTM is 3.343%

c. The current yield is 3.826%

Explanation:

a. Bond price formula: ∑(C* / (1+YTM) $n$ )

The price of the bond Intro A with i=1,2...10 is:

∑($1,000 x 3.4% / (1 + 3.3%) $i$ ) = $1,008.40

b. The price of the corporate bond which has 22 years to maturity is: $1,202.20

Given that the bond is trading at par value, the bond's YTM is:

[Annual Interest Payment + ((Face Value – Current Price) / (Years to Maturity))] / ( ( Face Value + Current Price ) / 2 )

= [$1,000 x 4.6% + (($1,000 - $1,202.20) / 22)] / (($1,000 + $1,202.20) /2)

= 3.343%

c. The bond's current yield is:

Annual Interest Payment / Current Price = $46 / $1,202.2 = 3.826%

5 0

3 years ago

Why teams need negotiation skills?<br>

Vitek1552 [10]

Answer:

Negotiating a decision that the group is all happy with increases a team's cohesion and helps individual members examine their own motivations. Successful negotiation provides the team with faith in their ability to continue to co-operate with each other.

<h2>hope it helps you.</h2>

7 0

3 years ago

Of the following scenarios, which one is best suited to a non-linear presentation?

Aleksandr [31]

<span>C. A brainstorming session on new titles for a future publication series.</span>

7 0

3 years ago

Read 2 more answers

A ____________ approach to solving the recession in this example would have no uncertainty regarding the attainment of the short

Ksju [112]

Answer:

monetarist approach

Explanation:

Monetarism relates to the school of thought that prioritizes the function of government agencies in regulating the number of resources in circulation in monetary economics. Monetarist theory argues that differences in the currency supply have significant short-term and longer-term impacts on federal output and price rates.

If a country's money supply decreases, business activity will rise, as per monetarist theory; the opposite is also correct. The monetarist philosophy is driven by a standard equation, MV= PQ, in which M will be the money supply, V is just the pace and P refers to the price of commodities, and Q is the sum of commodities.

5 0

3 years ago

Suppose that firm a dislikes hiring black accountants, while firm b is happy to hire them. so ted ends up working at firm b rath

egoroff_w [7]

<span>Regardless of the firm, most companies will do at least a bi-annual audit if not quarterly. In this case Ted would do the same amount of audits for either company, two to four depending on the companies frequency.</span>

6 0

3 years ago