1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaVladis [17]
3 years ago
13

Consider the case of BTR Co.: BTR Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bo

nds have a par value of $1,000, and their current market price is $1,100.35. However, BTR Co. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on BTR Co.’s bonds?
Business
1 answer:
valentinak56 [21]3 years ago
5 0

Answer:

Yield to maturity is 7.93%

Yield to call is  7.83%

Explanation:

I calculated both the yield to maturity and yield to call using the rate formula in excel which is =rate(nper,pmt,pv,-fv)

nper is the year to maturity and year to call of 18 years and 8 years respectively.

pmt is the periodic coupon payment is 9%*1000=$90 in each case.

pv is the present value in each  case of $1100.35

The future value which is the redemption value is $1000 for yield to maturity and $1060 for yield to call

Find attached detailed calculation

Download xlsx
You might be interested in
Which one of the following parties has ultimate control of a corporation?
mariarad [96]

E) Shareholders

Good luck!!!

7 0
3 years ago
ClipClop Company sells horseshoes to customers at a discount of 4% if the customer orders more than 10,000 horseshoes in a year.
STALIN [3.7K]

Answer:

$7,680

Explanation:

The computation of the sales revenue in April month is shown  below:

= Sales revenue - discount

where,

Sales revenue = Number of horseshoes × price per shoe

                       = 4,000 horseshoes × $2

                       = $8,000

And, the discount equal to

= Sales revenue × discount percentage

= 8,000 horseshoes × 2%

= 3$20

Now put these values to the above formula

So, the value would be equal to

= $8,000 - $320

= $7,680

7 0
3 years ago
While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulatio
masha68 [24]

Answer:

a. people face tradeoffs.

Explanation:

Tradeoffs means sacrificing something in order to achieve another thing.

Firms are sacrificing some of their profits in order to have an healthier and cleaner environment.

I hope my answer helps you

5 0
3 years ago
Countries with socialist economies aspire to be "classless." b) Socialism involves an economic ideology in which the government
Butoxors [25]

Answer:

Socialism involves an economic ideology in which the government or state plays a strong role in the economy and may own stakes in certain businesses

Explanation:

Socialism is an Economic system owned, managed & run by state (government). The central problems of economy : what, how, for whom to produce - are solved by state. State decisions are based on social welfare guidelines. Market forces are insignificant, private accumulation of property is not there.

However, in Capitalist system - resources are owned, managed, controlled by private sector. The central problems of economy are solved by private sector, as per market forces & profit maximisation guideline. Private accumulation of property is allowed. The system has two classes : Bourgeoisie (Capitalist wealthy entrepreneur class) & Proletariat (Labourers)

So, Socialism having everything under state control, has no classes -Bourgeoisie (entrepreneurs) & Proletariat (Labourers). Hence, it is a Classless Economic System

4 0
3 years ago
How does the existence of substitutes affect the price elasticity of demand?A) The existence of substitutes leads to higher pric
choli [55]

Answer:

B) If there are many substitutes, the price elasticity of the good is more elastic.

Explanation:

Price elasticity of demand measures how quantity demanded changes when price level changes.

If there are subsituites for a good, the demand for the good tends to be more elastic - a small change in price leads to a greater change in quantity demanded.

Suppliers would be less motivated to increase prices if there are many close substitutes for its goods.

I hope my answer helps you.

4 0
3 years ago
Other questions:
  • Jeff Brooks has recently moved into an apartment and has discovered that the previous tenant forgot to turn off the cable TV ser
    8·2 answers
  • A written promise to pay certain sum of money to another person or company is a
    5·2 answers
  • HERMONE HAS A CREDIT SCORE OF 653 HER CREDIT SCORE WOULD RECEIVE WHICH OF THE FOLLOWING CLASSIFICAION
    5·1 answer
  • How Taxation and Legislation impact positively and negatively on a company.
    9·1 answer
  • You have been using a variety of nested IF functions to calculate costs in your spreadsheet when a colleague stops by and commen
    14·1 answer
  • Which of these characteristics is NOT applicable to a multinational company?(A) It may serve only one country but have suppliers
    6·1 answer
  • Although transaction costs are reasonable, ASI has encountered financial problems with high production costs. Jonathan, a vetera
    7·1 answer
  • Which of the following statements is TRUE? A. The longer you use credit responsibly, the higher your credit score will be. B. Pe
    9·2 answers
  • A document certifying ownership of part of a corporation is a
    10·1 answer
  • In a project network, the critical path is the sequence of activities which has the:________.
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!