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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
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Answer:

24%

Explanation:

For the taxes due on April 2020 (current year taxes):

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If no deductions were available, they would owe $188,000 x 24% = $45,120 in taxes.

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3 years ago
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide alloca
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Answer:

Option (D) is correct.      

Explanation:

Total Overhead Cost:

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= (20 × 350) + (25 × 550) + (17 × 650)

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Overhead Rate:

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4 0
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In 2019, Audrey claimed $2,100 on her Federal tax return for her Child and Dependent Care Expenses Credit. Her Federal adjusted
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Answer:

$1,050

Explanation:

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3 years ago
Krell Industries has a share price of $ 21.05 today. If Krell is expected to pay a dividend of $ 0.89 this year and its stock pr
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