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
lora16 [44]
3 years ago
7

An investor holds a 6% callable bond purchased at 105. If the issuer calls the bond before maturity, the yield to call (YTC) rea

lized by the investor would be A) equal to the yield to maturity (YTM). B) less than the coupon. C) greater than the yield to maturity (YTM). D) greater the current yield (CY).
Business
1 answer:
myrzilka [38]3 years ago
7 0

Answer: less than the coupon

Explanation:

When a bond that is bought at a premium of 205 is called before the bond matures by the issuer, this implies that the accelerated premium loss will have to be reflected in calculated yield to maturity.

It should also be noted that the YTC is the lowest among the yields for the premium bonds. Therefore, if the issuer calls the bond before maturity, the yield to call (YTC) realized by the investor would be less than the coupon.

Option B is correct.

You might be interested in
Asonia Co. will pay a dividend of $5.20, $9.30, $12.15, and $13.90 per share for each of the next four years, respectively. The
igomit [66]

Answer:

$31.35 (Approx)

Explanation:

Require a return on company's stock = 9.6%

Dividend:

Year 1 = $5.20

Year 2 = $9.30

Year 3 = $12.15

Year 4 = $13.90

Therefore,

Stock price:

= Future dividends × Present value of discounting factor(rate%,time period)

=\frac{5.20}{1.096}+\frac{9.3}{(1.096)^{2} }+\frac{12.15}{(1.096)^{3} }+\frac{13.90}{(1.096)^{4} }

= $31.35 (Approx)

3 0
3 years ago
Your uncle is offering to sell you his T-shirt printing business for $1M. You think a multiple of 10X earnings (profit) is fair.
Archy [21]
No because it is to expensive and the modern outfits are changing relatively quickly
8 0
2 years ago
Steve, an engineer in a construction company, is at present working on a home construction project. the home is being built for
Varvara68 [4.7K]
Projects are temporary endeavors whereas an organisation's operations are ongoing in nature.The Role of a project sponsor is to provide direction and funding for a project. In this case, Steve is working with his project team and support staff to ensure the project is completed on time and the project sponsor is Robinson family.
7 0
3 years ago
You read an article in a news magazine that explains how the economy expanded for several years, and then went into a period of
mart [117]
The best and most correct answer among the choices provided by the first question is the third choice or letter C "the business cycle."

On the other hand, the best and most correct answer among the choices provided by the second question is the first choice or letter A " The price goes up. "<span>
</span>I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!
7 0
3 years ago
Daniel and his intramural team just won the co-ed volleyball tournament, and they’re celebrating at an all-you-can-eat pizza pla
Gre4nikov [31]

Answer:

a. trade-offs 

c. marginal thinking 

Explanation:

Marginal thinking is when a decision maker evaluates the marginal benefits and marginal cost of a certain activity. Daniel is trying to evaluate if the extra calories (marginal cost) he would get from eating the 5th size of pizza (marginal benefit) is worth it.

Trade offs is also known as opportunity cost. It is what is sacrificed in order to carry out a certain activity. If Daniel eats the pizza, he's sacrificing a more healthy body for the extra slice of pizza.

I hope my answer helps you

5 0
3 years ago
Other questions:
  • The him department frequently experiences a backlog in loose report filing. a quality improvement team is assembled to identify
    15·1 answer
  • When performing the management _____ function, managers measure the results of operations and compare them with the results they
    9·1 answer
  • During the last year, Globo-Chem Co. generated $1,053.00 million in cash flow from operating activities and had negative cash fl
    6·1 answer
  • Question 24 (multiple choice)
    8·1 answer
  • Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fibergla
    9·1 answer
  • Problem 15b.) Suppose that, three years ago, the small town of Middling experienced a sudden doubling of the birth rate. Today,
    6·1 answer
  • To better organize his landscaping business, Frank divides each job into several parts. One part is excavation and removal of ol
    5·1 answer
  • An examplepf a cost would be<br> O profit<br> revenue<br> Ofire<br> O salaries
    15·1 answer
  • Greg Winston has gone bankrupt and started a lemonade stand. He has invested $400 in lemonade equipment, and he sells a glass of
    8·1 answer
  • With regards to a firms product line, a cost leadership strategy would strive for _______ while a differentiation strategy would
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!