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weqwewe [10]
3 years ago
14

Nine years ago the Templeton Company issued 26-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds ha

d a 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.
Business
1 answer:
sergij07 [2.7K]3 years ago
6 0

Answer:

11.62%

Explanation:

Note: see the attached excel file for how the realized rate of return is estimated.

Face value = $1,000  

Years completed = 9

Coupon rate = 11%

Coupon amount ($) = 110  

Call premium = 9%

Call price = 1,090

Realized rate of return = 11.62%

Download xlsx
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Answer:

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4 0
3 years ago
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wolverine [178]

Answer:

4/11 and 6/15 dressers.

Explanation:

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So a country that produces more goods uses a more efficient process to get more output.

In this scenario a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers in a day. Canada has absolute advantage in producing lamps and dressers, so importing these items will not be beneficial.

To get a balance where both countries will benefit a lamp will have to go for a ratio of each countrie's product to the opportunity cost.

That is for Peru to produce 4 dressers it will have opportunity cost of 11 lamps. So the ratio is 4/11.

Also for Canada to produce 6 dressers it will have opportunity cost of 15 lamps. So the ratio is 6/15.

Lamp should trade for between 4/11 to 6/15 dressers for both countries to benefit.

4 0
3 years ago
Many people have argued that the skills needed to be successful in today's workforce have changed. What skills do you feel an in
inysia [295]
<h2>Technical skills are really essential. But upon technical skill, soft skills are mandatory to have a successful career.</h2>

Explanation:

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Crisis management: Employee should possess this skill to handle challenging situation

Negotiation: Which is really important both for work life and personal life. This is required in all the levels of hierarchy.

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5 0
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With the availability of
Elenna [48]

Answer:

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Credits to : assignmentexpert

Explanation:

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Arte-miy333 [17]
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