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
When manufacturers try to understand what customers are looking for, they are thinking about the __________ component of the pro
kodGreya [7K]

Answer: Core customer value

Explanation:

Core customer value could be seen as focusing on customers who basically buy your product and what can be done to keep them or improve services for them. Most manufactures are on the lookout on what their customers really want and how they can give it to them in a great manner which would also be affordable. Customers are gold, hence, when not treated well they can be lost to another manufacturer considering the competition of the market. Core customer value focuses on what better can the manufacturer offer the customer.

8 0
3 years ago
Suppose the monopolist is thinking about charging men a 10% higher price. if the monopolist does so, the quantity demanded by me
vovikov84 [41]
It would not fall at all. Monopolists own the entire industry meaning the consumers have no alternatives. If they have no alternative they have no choice but to buy even if the price increases
5 0
3 years ago
Which of the following career fields ensures that required supplies are available.
GalinKa [24]
2) Purchasing, good luck!
6 0
3 years ago
Read 2 more answers
What are the portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share and 115 shares of Stoc
statuscvo [17]

The portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

<h3>Portfolio weight for each stock</h3>

First step

Total value = 185($64) + 115($49)

Total value = $17,475

Second step

Portfolio weight for each stock is:

Portfolio weight A = 185($64)/$17,475

Portfolio weight A = .6775

Portfolio weight B = 115($49)/$17,475

Portfolio weight B = .3225

Therefore the portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

The portfolio weights for a portfolio that has 185 shares of Stock A that sell for $64 per share is: 0.6775; 0.3325.

Learn more about Portfolio weight here:brainly.com/question/17279790

8 0
2 years ago
Alex Timbers, a wood supplier, receives an order of 10 wooden logs from a furniture manufacturing company. The client brief ment
Marianna [84]

Answer:

D.  Incomplete

Explanation:

The information supplied by the furniture manufacturing can be described as incomplete because it fails to state how big or how small the wooden logs should be to serve the purpose of what it is wants to be used for.  It only states the kind of quality  that the wood should be and that it should be of the same size.

5 0
3 years ago
Other questions:
  • Why might one project have the highest pw while a different project has the largest irr? explain?
    15·1 answer
  • From the information available, which of the following
    6·2 answers
  • If cost of goods sold under FIFO was $8,000 and was $10,000 under LIFO, assuming a tax rate of 40%, how much tax savings resulte
    14·1 answer
  • How did the rise of big business in the united states transform the economy and affect the lives of working people?
    11·1 answer
  • Which interest group is thought to run the most effective grass-roots lobbying campaigns?
    11·1 answer
  • What is the key to getting your message across?
    12·1 answer
  • 4. Which of the following do not have to be repaid by the business?
    9·1 answer
  • A financial analyst, assesses the likelihood of various possible future values of a stock price, assigns the following probabili
    13·1 answer
  • How does the price of oil impact the price of food?
    8·1 answer
  • The top five cities where venture capitalists are investing their money represent 10% of the global total.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!