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bulgar [2K]
3 years ago
9

West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds

currently sell for 98 percent of par value, what is the YTM?
Business
1 answer:
finlep [7]3 years ago
4 0

Answer:

9.68%

Explanation:

yield to maturity (YTM) = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

face value = $1,000

market value = $1,000 x 0.98 = $980

n = (13 - 2) x 2 = 22

coupon = $1,000 x 0.094 x 1/2 = $47

YTM = {$47 + [($1,000 - $980) / 22]} / [($1,000 + $980) / 2] = $47.9090 / $990 = 0.4839 x 2 (annual rate) = 0.09678 = 9.68%

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Which of the following savings options pays an interest rate that changes with the market rate of interest?
SashulF [63]

I am pretty sure that the answer is the money market account
5 0
3 years ago
An investor makes three deposits into a fund, at the end of 1, 3, and 5 years. The amount of the deposit at time t is 100(1.025)
bulgar [2K]

Answer:

The size of the fund at the end of 7 years is $483.110

Explanation:

Number of quarters = 4

We are given that the nominal rate of discount convertible quarterly is 4/41

Discount rate in each quarter =\frac{\frac{4}{41}}{4} = \frac{1}{41}.

Let A is the value after discount and X is the original value:

A = X - X(\frac{1}{41}) \\A=X(1 - \frac{1}{41}) \\A=\frac{40}{41}X\\X = \frac{41}{40}A

Now To calculate the value after 7 years we need to multiply each value by the interest raised to the correct power.

A=100 \times 1.025^1 \times \frac{41}{40}^{(7-1) \times 4}+100 \times 1.025^3 \times \frac{41}{40}^{(7-3) \times 4}+100 \times 1.025^5 \times \frac{41}{40}^{(7-5) \times 4}

A=483.110

Hence  the size of the fund at the end of 7 years is $483.110

3 0
3 years ago
Disposal Company operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site,
marishachu [46]

Answer:

b. liable.

Explanation:

Since in the question it is mentioned that there might be the release of chemicals from the site and the company sells the property to the eager developers so here if there would be the release so the seller would be liable as the parties who are potential responsible they recommended that the liabilities cant be avoided via ownership transfer

So the option b is correct

8 0
2 years ago
Jose wants to upgrade his look before a job interview. A friend tells him about a men's clothing line that allows potential cust
AlladinOne [14]

Answer:

D. Experience

Explanation:

Based on the information provided within the question it can be said that this scenario best describes the 4E framework objective known as experience. This is the objective of helping customers experience the company's product, either directly or indirectly. Which is what the clothing line in this scenario is doing by allowing it's customers to virtually experience the product by seeing how it would look on them through a computer program.

6 0
3 years ago
Read 2 more answers
Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. If you normally invest to ea
VMariaS [17]

Answer:

PV= $8235.817383

Explanation:

Giving the following information:

Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. You normally invest to earn 6.40 percent per year.

FV= $9,800

i= 0.064

n= 3

Present Value=?

We need to use the present value formula:

PV= FV/(1+i)^n

PV= 9800/(1.064^3)= $8235.817383

7 0
3 years ago
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