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
irina [24]
3 years ago
9

The Petit Chef Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments and ha

ve a par value of $1,000. If the bonds currently sell for $1,038.50, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Business
1 answer:
uysha [10]3 years ago
6 0

Answer:

The yield to maturity is 6.45%.

Explanation:

Yield to Maturity (YTM) is the long term yield on the bond based on the assumption that the bond is held till maturity. The Yield to Maturity is calculated using the formula as shown in the attachment,

The coupon payment on bonds is = 1000 * 0.07 = 70

YTM = ( 70 + (1000 - 1038.5)/9 )  /  ((1000 + 1038.5) / 2)

YTM = 0.06448 or 6.448% rounded off to 6.45%

You might be interested in
What is a caterer what is his job
Oksi-84 [34.3K]
A caterer is someone who arranges the delivery, preparation and presentation of food for clients. If you've ever attended a bridal shower, fund raiser, rehearsal dinner, wedding reception or a bar mitzvah that had beautifully prepared and presented food, chances are that event was catered.
6 0
3 years ago
Williamsburg Nursing Home is investing in a restricted fund for a new assisted-living home that will cost $6 million. How much m
Digiron [165]

Answer:

Annual deposit= $188,842.66

Explanation:

Giving the following information:

Williamsburg Nursing Home is investing in a restricted fund for a new assisted-living home that will cost $6 million.

n= 15 years

i= 10%

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (6,000,000*0.10)/[(1.10^15)-1]

A= $188,842.66

3 0
3 years ago
On October 31, Year 1, A company general ledger shows a checking account balance of $8,445. The company’s cash receipts for the
slamgirl [31]

Answer:

Balance as per cash book                                                     $ 8,445

Adjustments to be recorded in cash book

Less: Bank Service Fees                                                        $ (  310)

Add: Note receivable                                                             $ 6,600                                                              

Add: Interest earned                                                              <u>$  1,120</u>

Adjusted cash balance                                                       <u>$ 15,855</u>

Balance as per bank statement                                           $ 12,895

Add: Deposits in transit ( $ 74,640 - $ 71,375)                    $  3,265        

Less: Unpresented cheques ( $ 72515- 71270)                   $ (1,245)

Add: Correction of error                                                        <u>$    940</u>

Adjusted bank balance                                                        $ 15,855

Explanation:

For cash book, the adjustments that have to be recorded are the bank service fees, collection of notes and interest.

For bank statements, the adjustments that have to be recorded are the deposits in transits ( collections not deposited). unpresented cheques ( cheques issued but not presented) and the correction of the wrong entry.

3 0
3 years ago
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has investe
gtnhenbr [62]

Answer:

Crawford Construction

1. Crawford Construction sold and replaced its inventory:

a. 4.14 x

2. With Construction Industry Inventory Turnover Ratio as 4.55x, Crawford Construction:

b. Crawford Construction is holding more inventory per dollar of sales compared to the industry average

Explanation:

a) Data and Calculations:

Quick ratio = 2.00x,

Cash = $36,225

Accounts receivable = $20,125

Inventory = x

x= $80,500 - 36,225 - 20,125 = $24,150

Total current assets = $80,500

Total current liabilities = $28,175

Annual sales = $100,000

Using annual sales instead of cost of goods sold to calculate the inventory turnover, = Turnover/Inventory = $100,000/$24,150 = 4.14x

b) Quick ratio equals (Current assets - Inventory)/Current Liabilities.  Computing the quick ratio in place of the current ratio can be used to identify how Crawford Construction can meet its current (short-term) debts without selling inventory and recovering funds from the sale.

c) The Inventory Turnover Ratio divides the cost of goods sold by the average inventory.  The Sales value can approximate the cost of goods sold.  The ratio shows the efficiency of Crawford Construction in handling its inventory.  The higher the value of the ratio, the better, showing that Crawford is more efficient when it gets a higher turnover ratio.

7 0
3 years ago
If a U.S.-based automobile parts supplier were to apply a global mind-set to its internal analysis, it would: a. review sales da
Stella [2.4K]

The correct option is, (d) study all of its internal resources with an understanding of which capabilities offer value to meet the needs of U.S., Japanese, European, and Korean automakers.

<h3>What will happen in theory if a company is able to align its strategy and structure?</h3>
  • A business is debating altering its organizational structure in order to capitalize on a consumer trend.
  • The business recognizes the potential revenue that could result from this new consumer behavior, which is very profitable.

<h3>Which of the following is an example of an intangible company resource?</h3>
  • Trademarks, goodwill, and patents are a few examples of intangible assets.

<h3>Why is IT important for a company to align its IT strategy to business strategy?</h3>
  • IT strategy and business goals should be coordinated to ensure that everyone is on the same page and working toward the same objectives.
  • This helps to guide and inform decision-making.
  • IT systems are more likely to be useful, well-used tools when they are chosen and implemented in accordance with an organization's strategic goal.

Learn more about internal analysis here:

brainly.com/question/6426686

#SPJ4

6 0
2 years ago
Other questions:
  • Which term describes judging an individual based on the group to which they belong?
    9·2 answers
  • For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as foll
    9·1 answer
  • What forces have caused cost and management accounting systems designed decades ago to become less relevant and less valuable fo
    13·1 answer
  • Selected data from a February payroll register for Coronado Company are presented below. Some amounts are intentionally omitted.
    7·1 answer
  • Abbott Inc. owns 30% of the outstanding voting shares of Berta Inc. On the date of acquisition, the fair value of Berta's equipm
    12·1 answer
  • The management of L Corporation is considering a project that would require an investment of $223,000 and would last for 6 years
    10·1 answer
  • The issuance of equity for a firm with various financing alternatives signals that the firm has unfavorable prospects which it w
    12·1 answer
  • Should work or another form of payment be used to satisfy a lien ?
    8·1 answer
  • 1
    11·1 answer
  • In coffee, cherry picking, the process of ________picking is the practice of harvesting only the ripe coffee cherries.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!