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Ivahew [28]
3 years ago
14

Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and is selling fo

r $1,197.93. 1) Is the YTM more or less than 10%
Business
1 answer:
NikAS [45]3 years ago
8 0

Answer:

The YTM is less than 10%

Explanation:

If a coupon rate of a bond is greater than its yield to maturity (YTM), the bond is said to trade at a premium. The Bond's current price would be greater than its Face value

If a coupon rate of a bond is less than its yield to maturity (YTM), the bond is said to trade at a discount. The bonds current price would be less than its face value

In this Question, the bond's current price ($1,197.93) is greater than its face

($1,000) which means that the bond is trading at a premium. Therefore, we can conclude that the bond's YTM is less than its coupon payment. In this question the coupon rate is 10%, therefore the YTM should be less than 10%.

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E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
brilliants [131]

Answer:

$25.86.

Explanation:

To address this problem we first calculate the present value of all dividend received at time t = 20, then we discount that sum to time t = 0 (now).

The cashflow pattern of this preferred stock is similar to perpetuty.

Stock value at time t = 20 = Dividend/Required rate of return = 20/10.5% = 190.48

Stock value at time t = 0 = (Stock value at time t = 20)/(1 + Required rate of return)^20 = 190.48/(1 + 10.5%)^20 = 25.86.

6 0
2 years ago
If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surpl
marysya [2.9K]

Answer:

there is no deadweight loss.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.

4 0
3 years ago
​ Anna works for Federal Motors Corporation in the Human Factors Division. Her job is to identify ways in which engineers can de
Alborosie

Answer:

Industrial-organizational psychologist

Explanation:

According to my research on the different types of psychologists, I can say that based on the information provided within the question Anna is most likely  an Industrial-organizational psychologist. This type of psychologist study workplace productivity and management in order to solve problems in the workplace and improve the quality of life. Which is what Anna is doing in this situation.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
When a customer makes a request or complaint, the goal of customer service is to
Nana76 [90]

Answer:

try to solve their issue or do whatever the hell you're supposed to

3 0
3 years ago
Read 2 more answers
Charge a $5 penalty if an attempt is made to withdraw more money than available in the account.Here the account string is "S" or
romanna [79]

Answer:

C++ code is explained below

Explanation:

class Account {

 double balance;

 double add(double sum) {

   balance += sum;

   return sum;  

 }

 double withdraw(double sum) {

   if (sum > balance) {  

     balance -= 5;

     return -5; // this will come in handy in Prob. 6  

   } else {  

     balance -= sum;

     return balance; // Notice: always >= 0 (never < 0)

   }

 }

 double inquire() { return balance; }  

 Account() { balance = 0; }

 Account(double sum) { balance = sum; }

 double interest (double rate) {

   return rate * balance;  

 }

}

_______________________________

class Bank {

 Account checking;

 Account savings;  

 void deposit(double amount, String account) {

   if (account.equals("C")) checking.add(amount);  

   else // my default

     savings.add(amount);  

 }

 void withdraw(double amount, String account) {

   if (account.equals("C")) checking.withdraw(amount);  

   else // my default

     savings.withdraw(amount);  

 }

 void transfer (double amount, String account) {

   if (account.equals("C"))  

     if (checking.withdraw(amount) >= 0)  

       savings.add(amount);  

     else checking.add(5); // somewhat fault-tolerant

   else // default

     if (savings.withdraw(amount) >= 0)  

       checking.add(amount);  

     else savings.add(5);  // no penalty for transfers

 }

 void printBalances() {

   System.out.println(

     "Checking: " + checking.inquire() +

     "\nSavings: " + savings.inquire()

   );  

 }

}

8 0
3 years ago
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