Brainliest Answer!!! <br> Five reasons why travel and tourism industry is important in the U.S.

McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but

ratelena [41]

Answer:

YTM = 6.88%.

YTC = 4.26%.

Explanation:

a. Calculation of Yield to Maturity (YTM)

The bond's Yield to Maturity can be calculated using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity = 25

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = face value or par value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(25,90,-1250,1000) ............ (2)

Inputting =RATE(25,90,-1250,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 6.88%.

Therefore, YTM is 6.88%.

b. Calculation of Yield to Call (YTC)

The bond's Yield to call can be calculated using the following RATE function in Excel:

YTC = RATE(nper,pmt,-pv,fv) .....................(3)

Where;

YTM = yield to call = ?

nper = number of periods = number of years to call = 5

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = future value of the bond or the amount at which the bond can be called = $1,050 = 1050

Substituting the values into equation (3), we have:

YTM = RATE(5,90,-1250,1050) ............ (4)

Inputting =RATE(5,90,-1250,1050) into excel (Note: as done in the attached excel file), the YTC is obtained as 4.26%.

Therefore, YTC is 4.26%.

Download xlsx

6 0

2 years ago

A production possibilities frontier: A. shows how unlimited wants exceed the limited resources available to fulfill those wants

solong [7]

Answer:

The correct answer is C. Shows the maximum attainable combinations of two goods that may be produced with available resources.

Explanation:

The Production Possibilitiy Frontier (PPF) shows the most optimal usage of a a limited amount of resources to produce two separate goods and obtain the maximum production output possible. This theory is applicable only to the production of 2 products and demonstrates the concept of cost of opportunity. Producing more of one of the products means producing less of the other, as the resources are scarce.

4 0

3 years ago

Read 2 more answers

When individual investors become aware of overseas investment opportunities and are willing to diversify their portfolios intern

kvv77 [185]

Answer:

b. They benefit from an expanded opportunity set.

Explanation:

Recently, financial market have become highly integrated, which help investor to diversify their portfolios internationally.

International portfolio help the investor to focus on foreign market´s securities to invest, it add exposure of portfolio to the growing and developed market. As firm is going global to expand opportunity set, so that it can earn more benefit out of diversified market, similarly, investor are going global by diversifying their investment opportunity.

7 0

3 years ago

Read 2 more answers

The Probability that no customers are in the system

Bumek [7]

Answer:most percent

Explanation:took quiz

4 0

3 years ago

The long-run aggregate supply curve will not shift if there is a change in A. amount of capital. B. the price level. C. technol

ValentinkaMS [17]

Answer:

The long-run aggregate supply curve will not shift if there is a change in

B. the price level.

A change in the price level only results in a movement along the long-run aggregate supply curve, it doesn't cause a shift. Only when the quantity of factors of production changes, will the LRAS curve shift.

All of the following will shift the short-run aggregate supply and the long-run aggregate supply except for

C. a temporary change in input prices.

Basically the same logic as the previous answer, a change in price level doesn' shift the LRAS curve.

3 0

3 years ago

Brainliest Answer!!! Five reasons why travel and tourism industry is important in the U.S.