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
mrs_skeptik [129]
3 years ago
8

Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has sem

iannual payments, a face value of $2,000 and the current date is April 19, 2018. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 5.7 Apr 19, 2034 108.96 ?? 1,827 a. What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield?

Business
1 answer:
wlad13 [49]3 years ago
4 0

Answer:

a. 4.89%

b. 5.23%

Explanation:

We use the rate formula which is shown in the attached spreadsheet

Given that,  

Present value = $2,000 × 108.96% = $2,179.20

Future value or Face value = $2,000  

PMT = $2,000 × 5.7% ÷ 2 = $57

NPER = 16 years × 2 = 32 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

a. The yield to maturity of the bond is 4.89%

b. The current yield would be

= 57 × 2 ÷ $2,179.20

= 5.23%

You might be interested in
James has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $7,000 tax deduction. How will this ov
Alex17521 [72]

Answer:

hmhgdmthde

Explanation:

7 0
3 years ago
Select the incorrect statement regarding postaudits of capital investment decisions. Multiple Choice A postaudit should be condu
Finger [1]

Answer:

A post audit is only necessary for a capital investement selected using a technique that does not consider the time value of money

Explanation:

A post audit defines the analysis of an outcome with respect to the capital budgeting investment. It is to be conducted at the closing of the period. Also it measures whether the project should be accepted or rejected via details assumption analysis but also it considered the times value of the money

Therefore the above statement should be considered

And, hence, the other options should be considered as wrong

4 0
3 years ago
At the start of the current year, SBC Corp. purchased 25% of Sky Tech Inc. for $47 million. At the time of purchase, the carryin
cricket20 [7]

Answer:

$3

Explanation:

SBC Corp

($million)

FV in excess of book value $12

×

Share of ownership 25%

Additional depreciation in total $3

Therefore the total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: $3

5 0
3 years ago
In 1-2 sentences, describe how you would create a border around a group of cells
Leokris [45]
On a worksheet, select the cell or range of cells that you want to add a border to. Then, on the Home tab, go to the Font group and click the arrow next to Borders. There you shall be able to click a border style. 

6 0
3 years ago
Read 2 more answers
According to the Uniform Commercial Code (UCC), _____. Select one: a. the sale of goods between two parties is always legal b. t
liq [111]

Answer:

c.

Explanation:

According to the Uniform Commercial Code (UCC) the sale of goods costing $500 or more is not enforceable without a writing or other specified evidence. This is touched upon in the statute of frauds within the UCC which is a state law that requires contracts for the sale of goods worth $500 or more to be in writing and signed by the parties in order to be enforceable, otherwise, they are not valid and cannot be used against someone in a court of law.

8 0
3 years ago
Other questions:
  • What are work content skills
    6·1 answer
  • Why can't minors work more than 3 or 4 hours?
    12·2 answers
  • Ray presents information about the office supplies his company sells to a
    7·2 answers
  • If the cost of producing orange juice​ increases, the equilibrium price of orange juice will​ ________ and the equilibrium q
    11·1 answer
  • Technical analysts consider the stock market to be strong when volume _________ in a rising market and _________ during a declin
    12·1 answer
  • Include general ability to understand alter lead and control the behavior ​
    13·1 answer
  • A bank can borrow or lend at LIBOR. Suppose that the six-month rate is 4% and the nine-month rate is 5%. The rate that can be lo
    7·1 answer
  • Choose the correct statement. A. Upper A bank's reserves are notes and coins in the bank's vault or in a deposit account at the
    10·1 answer
  • Housholder Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each ye
    8·1 answer
  • Write a short essay about inventory control( involves kind of inventory reason and approach)​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!