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
lara31 [8.8K]
2 years ago
7

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond

before it matures, your realized return is known as the holding period yield (HPY).
Requirement:
1. Suppose that today you buy a bond with an annual coupon rate of 8% for $1,170. The bond has 16 years to maturity. What rate of return do you expect to earn on your investment? Assume a par value of $1,000.
2. Two years from now, the YTM on your bond has declined by 1%, and you decide to sell.
A) What price will your bond sell for?
B) What is the HPY on your investment?

Business
1 answer:
True [87]2 years ago
6 0

Answer and Explanation:

The computation of each part is to be shown in the attachment. The one statement is of final values and the other one is of formula sheet.

This one applied for all the things which need to be find out

Kindly find the attachment below:

We use the RATE formula for determining the rate of return and the same is to be considered

You might be interested in
On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc. with credit terms of 2/10, n/30. The cos
NeTakaya

Answer:

Option (d) is correct.

Explanation:

Given that,

Inventory sold to Alberta, Inc. on account = $5,800

Cost of goods sold = $4,000

The journal entries are as follows:

(i) On October 1,

Accounts receivable A/c Dr. $5,800

           To sales A/c                             $5,800

(To record the credit sale of inventory)

(ii) On October 1,

Cost of goods sold A/c Dr. $4,000

         To Merchandise inventory A/c     $4,000

(To record the cost of goods sold)

4 0
3 years ago
attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with
ELEN [110]

Answer:

Specialty store

Explanation:

A specialty store is a retail business that specializes in a particular range of products and its related merchandise.  A specialty store will have an extensive depth of the merchandise that its stocks. For example, a business may focus on office supplies, men clothing, or household appliances as opposed to having a wide range of consumer products.

Specialty stores will often sell their products at a premium price. They offer excellent and friendly customer service. Employees at a specialty store have in-depth knowledge about their products and will provide expert advice to customers.

5 0
3 years ago
When some countries increase their imports as a result of worldwide economic growth, other countries must be increasing their:__
ziro4ka [17]

Answer:

exports as demand in all countries substantially rises.

5 0
3 years ago
Why might the unemployment rate underestimate the underutilization of labor​ resources? The unemployment rate might underestimat
DaniilM [7]

Answer:

marginally attached staff and​ part-time staff that hope on getting​ full-time jobs

6 0
3 years ago
Good friends, bernie and latasha, both studied accounting in college. recently, they decided to work together as co-owners of a
-BARSIC- [3]
This is an example of a partnership 
3 0
3 years ago
Other questions:
  • _____ is information about data—its content, quality, condition, origin, and other characteristics.
    10·1 answer
  • Kristi purchases an annuity that will pay her husband an income for 15 years. if he dies, this income will become payable to the
    7·1 answer
  • Caleb bought a car for $6,900. he agreed on a five- year loan at a 5.4% interest rate. calculate what caleb's monthly payments w
    7·1 answer
  • What typically happens to non farm payrolls the pmi indicator, and housing starts at the onset of a recession in the united stat
    14·2 answers
  • Screening Model. Assume that the following criteria relevant to the process of screening various project opportunities are weigh
    13·1 answer
  • Trans Union Corporation issued 6,800 shares for $50 per share in the current year, and it issued 11,800 shares for $37 per share
    10·1 answer
  • Suppose that a mortgage bank locked in an interest rate for a prospective borrower at 8.5%. However, prior to the loan closing,
    9·1 answer
  • Jody is an agent for Kwik Credit Company (KCC). In the course of Jody's performance for KCC, Jody pays Leo for certain auto main
    15·2 answers
  • . Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is availabl
    6·1 answer
  • What are trade offs.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!