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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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The boom in delivery was greater than the lower in demand.

Each growth in supply and reduction in demand effects in price fall. but, when the delivery will increase plenty greater than lower in demand the equilibrium amount is certain to boom as well.

Here is the way to locate the equilibrium rate of a product:

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remedy for the equilibrium price.

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5 0
1 year ago
Mitchell has worked for a very large company for three years. During lunch one day he stood at the elevator and read the buildin
s344n2d4d5 [400]

Answer:

It is departmentalized in a functional way

Explanation:

Functional departmentalization is the type of organizational structure based on common job functions. In Mitchell's case all similar jobs, like legal or marketing, are grouped in one place or on the same floor. This type of organization provides space for further employee's specialization by putting staff in places where their skills can further develop.

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4 years ago
A person who wants to cash his paycheck is advised to go to his bank rather than to a check cashing store because check cashing
Marianna [84]
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3 0
4 years ago
Sunland company installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $12,0
padilas [110]

Answer:

D. $42,000 should be debited to Land Improvements

Explanation:

The cost of the land housing the parking is recorded in the land account. Other costs such as paving cost and lights are improvements and as such are added and recorded in the Land Improvements accounts.

Total Land improvements = $30,000 + $12,000

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The right answer is D. $42,000 should be debited to Land Improvements.

4 0
3 years ago
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joja [24]

Answer:

$3,483.17

Explanation:

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Using this formula

Allocation to Cafeteria=[Cafeteria/(Cafeteria+Producing Department A+Producing Department B)]×Budgeted costs

Let plug in the formula

Allocation to Cafeteria=[25/(25 + 308 + 287)] x $72,450

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Therefore the amount of cost allocated to the Cafeteria under the step method would be $3,483.17

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