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kotykmax [81]
3 years ago
13

What is the yield to maturity of a ten-year, $1000 bond with a 5.2% coupon rate and semiannual coupons if this bond is currently

trading for a price of $884? Please show workA. 6.82%B. 6.23%C. 5.02%D. 12.46%
Business
1 answer:
Anna35 [415]3 years ago
4 0

Answer:

A. 6.82%

Explanation:

Yield to Maturity is a discounting rate which equals all the cash outflows related to bond with the present /current market value of bond. YTM is calculated by trial and error method. Since the options are available in the question, we can use those options to find out correct YTM.

First we are taking YTM 6.82%

Semi-annual YTM = 3.41%

Coupon Interest semi annual = 1000*5.2%*1/2

                                                 = $26

No of times interest paid = 10*2

                                          = 20

Present Value of bond

= Coupon Interest*PVIFA (YTM, 20) + Par Value x PVIF (YTM, 20)

= 26*PVIFA (3.41%, 20) + 1000*PVIF(3.41%, 20)

= (26*14.32884) + (1,000*0.511386)

= 372.55 + 511.39

= $884

At YTM 6.82% all the future cash flows of bond is equals to its current value.

Therefore, The correct YTM is 6.82%

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Answer:

The answer is A.

Explanation:

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While A banker's acceptance is a short term instrument given by a bank that obligates itself to make a payment at a later date. It is like a post-dated check.

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The presence of planning does inhibits the ability of departments and individuals to work together or organizations to move.
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A true i think that's the answer
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This is the term that is used to refer to the decisions that are being made by people in the consumption of goods and services.

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6 0
2 years ago
"Uterine family" is the phrase Margery Wolf uses to describe the family a woman makes by having children though they are not off
AlekseyPX

Answer:

a. True

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The Uterine family implies the family description that shows the women have the children but they are not officially recorded as a members of the similar lineage

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3 0
3 years ago
Business has been​ good! As a​ result, Benjamin has a total of​ $25,000 in bonus pay to distribute to his employees. One option
FinnZ [79.3K]

Answer:

The new data set, which involves the mean, median, mode increases or rise up to $2500.

Explanation:

Solution

Given that:

Assume that  M, L, N be the mean, median, mode of the old data set

Now

The number of employees is give as = (25000/2500)

= 10.

Suppose the salaries of 10 employees be Si,

where i = 1,2,3,4,5,6,7,8,9,10.

Then

M =∑^10 i =1 Si /10

Where

L is the number in the middle when the data is ordered from least to greatest

L = Sj,

Where j ∈ (1,2,3,4,5,6,7,8,9,10).

N = Sk j ∈ (1,2,3,4,5,6,7,8,9,10).

Thus

The salaries of 10 employees with bonus is Sj+2500, where j = 1,2,3,4,5,6,7,8,9,10

Now for the new data set we have the following stated below:

Mean = ∑^10 i =1 (Si + 2500)/10

= ∑^10 i= 1 Si/10 + 2500

= M +2500

Median = Sj+2500 = L+2500.

Mode = Sk+2500 = N+2500.

Hence the new data set, which involves the mean, median, mode increases or rise up to $2500.

5 0
3 years ago
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