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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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A seller received a rental payment of $100 in advance. At closing, the seller has "earned" only $32 of this rent. What should ap
allsm [11]

Answer:

$68 appears as the amount unearned but received (or still paid in advance) in the closing statement

Explanation:

Amount received in advance = $100

Amount earned = $32

Amount (in advance at closing) is the difference between the amount originally paid in advance and the amount earned

Amount (in advance at closing) = $100 - $32

                                                    = $68

The amount that will appear in the closing statement as rental payment still in advance is $68.

3 0
2 years ago
What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays 8.6%, co
Burka [1]

Answer:

The answer is $86,167.57 (to 2 decimal places)

Explanation:

In this question, we are to calculate the present value of a certain amount that is compounded semiannually, and after 10 years, yields a future value of $200,000. To calculate this, we will use the formula for calculating present value as follows:

PV = FV ÷ (1+\frac{r}{n})^{n*t}

where:

PV = present value = ???

FV = future value = $200,000

r = interest rate in decimal = 8.6% = 0.086

n = compounding period pr year = semiannually = 2

t = time of compounding in years = 10

Therefore,

PV = 200,000 ÷ (1+\frac{0.086}{2})^{2*10}

PV = 200,000 ÷ (1.043)^{20} = $86,167.57

3 0
2 years ago
Polaroid’s 3d pen allows users to create 3d models. You can free draw or use the polaroid trace app to trace over stencils and b
hammer [34]

For Polaroid, the addition of the 3D pen to the U.S. market would be viewed as a <u>market development</u> strategy on product-market matrix.

<h3>What is a product-market matrix?</h3>

This refers to a business map that helps the Product Managers to map the strategic market growth of their products. This Matrix was named after Igor Ansoff, who was a a mathematician and business manager who published an essay outlining the matrix in the Harvard Business Review in 1957.

The 4 strategies of Ansoff Matrix (product-market matrix) includes:

  • market penetration
  • market development
  • product development
  • diversification.

In conclusion, the addition of the 3D pen to the U.S. market would be viewed as a market development strategy on product-market matrix.

Read more about product-market

brainly.com/question/1273826

#SPJ1

7 0
1 year ago
The sum of all the federal deficits over time is known as the
Shkiper50 [21]
<span>The sum of all the federal deficits over time is known as the "national debt".
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National debt refers to the total of all exceptional debt owed by the government. It incorporates the cash the legislature has obtained, as well as the interest it must pay on the acquired cash. The administration strays into the debt when it doesn't gather enough income to cover the costs it brings about from spending on projects, for example, the military, or building streets and extensions. The incomes originate from corporate and salary charges, and the expenses the legislature forces, for example, for visas and travel permits, student loans, and admission to national parks.
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If the central bank wants to help the economy to grow, it can decrease _____.
Vladimir79 [104]
I would think Interest rates
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