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leonid [27]
3 years ago
8

Acme Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10% with interest paid annually,

and a par value of $1,000. If the current market price of the bond issue is $814.45, what is the yield to maturity, rd?
a. 13%
b. 15%
c. 12%
d. 16%
Business
1 answer:
Softa [21]3 years ago
8 0

Answer:

a. 13%

Explanation:

Interest Payment = C = $1,000 x 10% = $100

Face Value = F = $1,000

Market Price = P = $814.45

Year to maturity = n = 8 years

Yield to Maturity = [ C + ( ( F - P ) / n )] / [ ( F + P ) / 2 ]

Yield to Maturity = [ $100 + ( ( $1,000 - $814.45 ) / 8 )] / [ ( $1,000 + $814.45 ) / 2 ]

Yield to Maturity = [ $100 + 23.19 ] / 907.225

Yield to Maturity =  123.19 / 907.225

Yield to Maturity = 13.5%

So the nearest option is a. 13%

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A manager who tells a subordinate that he will not recommend her for promotion unless she supports his proposal in an upcoming s
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A manager who tells a subordinate that he will not recommend her for promotion unless she supports his proposal in an upcoming sales meeting is using Coercion type of political behavior.

<h3>What is Coercion behaviour?</h3>
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2 years ago
Bubba is a shrimp fisherman who can catch 4,000 pounds of shrimp per year. Bubba is considering hiring his cousin Bobby to work
melisa1 [442]

Answer:

7,000 pounds

Explanation:

Data provided in the question:

Shrimps Bubba catches per year = 4,000 pounds

Shrimps that Bobby can catch per year = 3,000 pounds

Therefore,

The marginal contribution of Bobby in the output if Bobby is hired is 3,000 pounds of shrimp

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The total output of his shrimp business is Bubba hires Bobby will be

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= 4,000 pounds + 3,000 pounds

= 7,000 pounds

4 0
3 years ago
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