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SVEN [57.7K]
3 years ago
14

Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.7 percent. The bond sells for $

962.62 and matures in 13 years. The par value is $1,000. What is the YTM of the bond
Business
1 answer:
kicyunya [14]3 years ago
5 0

Answer: 0.06101 = 6.101%

The yield to maturity of the bond is

6.101%

Explanation:

Using YTM formula below

YTM = C + (fv - pv) /n ÷ (fv + pv) /2

C= coupon rate = 5.7% of par value

5.7/100 × 1000

= $57

pv = price value = $962.62

Fv = face value / par value = $1000

n = number of years to maturity =13

Using above formula

C + ( fv - pv) /n =

57 + (1000 - 962.62) /13

57 + (37.38) / 13 = 59.8753846

(fv + pv) / 2 =

(1000 + 962.62) / 2

= 1962.62 / 2 = 981.31

YTM = C + (fv - pv) /n ÷ (fv + pv) /2

YTM = 59.8753846 / 981.31

YTM = 0.06101

( to percentage) = 6.101%

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A fall in real GDP that results in a decrease in personal income tax receipts is an example of​ ______.
lyudmila [28]

Answer:

c. automatic fiscal policy 

Explanation:

Automatic fiscal policy are policies triggered automatically due to the state of the economy which causes either government spending or taxes to increase or decrease.

For example, if the economy is undergoing a downturn and real GDP falls, the amount paid as taxes would fall.

If the economy is booming and the real GDP rises, the amount paid as taxes would rise.

These are examples of automatic fiscal policies.

Discretionary fiscal policy is when the government purposely increases or reduces either its spending or taxes in response to the economic conditions.

I hope my answer helps you.

5 0
3 years ago
Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit t
Strike441 [17]

Answer:

The gross profit margin of Candy Company is 65% (second option)

Explanation:

The gross profit margin is defined as:

Mg = (sales - costs) / price of sales  

If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:

Mg = ($320,000- $112,000) * 100% / $320,000  =  

Mg = $208,000 * 100% / $320,000  =  0.65 * 100%

Mg  =  0.65 * 100%  

Mg  =  65%  

6 0
3 years ago
Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at
Digiron [165]

Answer: 0.9

Explanation:

The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,

P = D1 / r - g

where,

D1 is the dividend paid next year

P is the current stock price

g is the growth rate

r is the expected return

With the given figures we have,

84 = 4.20 / r - 0.08

84 ( r - 0.08) = 4.20

r - 0.08 = 4.20/84

r = 4.20/84 + 0.08

r = 0.13

The Expected Return can be slotted into the CAPM formula to find the beta.

The CAPM formula calculates the Expected Return in the following manner,

Er = Rf + b( Rm - rF)

Where,

Er is expected return

Rf is the risk free rate

Rm is the market return

b is beta

Slotting in the figures gives,

0.13 = 0.04 + b( 0.14 - 0.04)

0.13 = 0.04 + b (0.1)

0.13 - 0.04 = 0.1b

b = 0.09/0.1

b = 0.9

Using the constant-growth DDM and the CAPM, the beta of the stock is 0.9

8 0
3 years ago
The ___________ is a flexible market that allows you to work short-term
dem82 [27]

Answer:

The <u>gig economy</u> is a flexible market that allows you to work short-term.

Explanation:

The gig economy is a market in which temporary jobs are offered for a specific period of time. This refers to working as a freelancer taking specific activities without a job contract or working exclusively for that organization. According to this, the answer is that the gig economy is a flexible market that allows you to work short-term.

7 0
3 years ago
Stu's Mellow Meter Miser (MMM) has recently experienced a sales decline due to the entry of a lower-priced competitor, Kelly's C
qaws [65]

Answer:

<u>New York Times (NYT) Cost per Thousand Impressions (CPM): </u>

Cost per Thousand Impressions = Advertisement Cost / (Impressions / 1000)

Cost per Thousand Impressions = $12,000 / (251,000 /1000)

Cost per Thousand Impressions = $12,000 / 251

Cost per Thousand Impressions = $47.8

<u>NYT CPM for College Professors: </u>

Impressions generated = 251,000 × 11%  

Impressions generated = 27610

CPM = Advertisement Cost / (Impressions / 1000)

CPM = $12,000 / (27610 / 1000)  

CPM = $12,000 / 27.61  

CPM = $434.6

7 0
3 years ago
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