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
vovangra [49]
3 years ago
5

Mary purchased a 10-year par value bond with semiannual coupons at a nominal annual rate of 4% convertible semiannually at a pri

ce of 1021.50. The bond can be called at par value 1100 on any coupon date starting at the end of year 5. What is the minimum yield that Mary could receive, expressed as a nominal annual rate of interest convertible semiannually?
Business
1 answer:
Ivan3 years ago
5 0

Answer: 0.05628 = 5.628%

The minimum yield that Mary could receive is 5.628%

Explanation:

Using the YTM (yield to maturity) formula

YTM = C + (f - p) /n ÷ (f+p) /2

C = coupon rate ; 4% of 1,100(par value) = 4/100 × 1,100 = 44

f = face value ( par value) = 1,100

P = market price = 1021.50

n = number of years = (10 - 5)= 5years : since the bond could be called at the end of 5 years.

YTM = 44 + (1,100 - 1,021.50)/5 ÷ (1,100+1,021.50)/2

YTM = 44 + ( 78.5)/5 ÷ 2121.5/2

YTM = 59.7/1,060.75

YTM = 0.05628

= 5.628% as the minimum yield Mary could receive.

You might be interested in
n January​ 1, 2018, Waller Sales issued $ 20 comma 000 in bonds for $ 18 comma 300. These are eightminusyear bonds with a stated
spayn [35]

Answer:

$18,106.25

Explanation:

For computing the carrying value of the bonds , first we have to determine the discount amortization for 8 years which are shown below:

= (Issued amount - proceeds from the bonds) ÷ time period

= ($20,000 - $18,300) ÷ 8 years × 2 years

= $106.25

Now the carrying value would be

= Proceeds from the bonds + discount amortization for 8 years  

= $18,000 + $106.25

= $18,106.25

Since the time period is 8 which are paid in semi-annual so we double the time period

8 0
3 years ago
HOW MUCH IS 5OO ROUNDED TO THE NEAREST 10TH
Anit [1.1K]
500 rounded to the nearest tenth is 500 because there is nothing to round

6 0
3 years ago
Tony Matheson plans to graduate from college in May 2018 after spending four years earning a degree in sports and recreation man
valentinak56 [21]

Answer:

1. Proprietorship, Partnership and Corporation (details below)

2. Refer the answer with details below

3. Refer the answer with details below

Explanation:

1. Three primary forms of business organizations

Proprietorship

Having a single owner and hence all liabilities and assets belong to the proprietor and he is personally liable, lower tax

Partnership

Partnership of two or more, and therefore profits and liabilities are distributed and they are personally liable, lower tax than corporation

Corporation

Separate legal identity and hence owners are not personally liable, limited liability with stringent controls and regulated, higher tax rates.

Given the circumstances of the Great Adventures i.e. safety and sustainability, corporation would be recommended.

2. Activities

A) Financing Activities may include common stock, borrowings, and repayments.

B) Investing Activities may include purchase and sell of assets like land, building and machinery and investments

C) Operating Activities may include providing goods and services to the customers ans related operational cost to run the day to day business.

3. Specific Account Names

Assets may include Cash, Merchandise Inventory, Accounts Receivable, Property, Plant and Equipment

Liabilities may include Accounts Payable, Bank Overdraft, Notes Payable, accruals, loans.

Stockholders' equity may include common stock, retained earnings

Revenue may include Service revenue, other income

Expenses may include Salaries, Rent, Insurance advertising

8 0
3 years ago
The consumer confidence index published by the conference board measures consumer:_______
ziro4ka [17]

The consumer confidence index published by the conference board measures consumer <u>a. sentiment</u>.

The confidence index is posted by means of the conference Board and measures investor outlook on the financial system and the markets - hence it is a measure of patron sentiment.

The confidence index will tell you how positive you may be that your remedy may have an equal effect (as befell in your experiments) on the whole population. it is a conference for scientists to document their facts with a p-value, and even though it is much like a confidence index, it is not identical.

A patron self-belief index (CCI) is an economic indicator posted through numerous agencies in numerous countries. In easy terms, elevated customer confidence shows a financial increase in which clients are spending cash, indicating higher consumption.

Learn  more about the confidence index  here brainly.com/question/4300488

#SPJ4

6 0
2 years ago
On January 1, 2020, Pharoah Company, a calendar-year company, issued $1680000 of notes payable, of which $420000 is due on Janua
irinina [24]

Answer:

Option C.

Current liabilities, $420,000;

Long-term Debt, $1,260,000.

Explanation:

The reason is that the amount that will be paid within the next 12 is current liabilities, so the amount $420,000 is current liability as it will be paid within the next 12 months. So the remainder of the amount that is not payable in the next 12 months is long term liability.

Long Term Liability = $1,680,000 Total Payable Amount - $420,000 Current Liability

Long Term Liability = $1,260,000

7 0
3 years ago
Other questions:
  • A client lists their primary investment objective as liquidity. An RR believes that investments in municipal securities are best
    14·1 answer
  • Less certain a cash flow, the ________ the risk, and ________ the present value of the cash flow. higher; lower lower; lower hig
    5·2 answers
  • The entry to establish a petty cash fund includes:___________
    11·1 answer
  • Monette has posted over 100 book reviews on amazon.com. she also frequently reviews products and services on epinions and posts
    14·1 answer
  • 1. What is the difference between fixed, variable, and periodic costs?
    15·1 answer
  • Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues tha
    12·1 answer
  • An offeree whose acceptance is not a mirror of the offer has made a counter offer.
    14·1 answer
  • Describe the difference between an idea and a business opportunity.
    8·1 answer
  • .
    5·2 answers
  • bombeck inc. has the following transactions during august of the current year. aug. 1: opens an office as a financial advisor, i
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!