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Pepsi [2]
3 years ago
6

A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The

actual yield to maturity on this bond is _________.
Business
1 answer:
jarptica [38.1K]3 years ago
3 0

Answer:

Actual Yiel to maturity is 9.3%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 4% = $40

Selling price = P = $785

Number of payment = n = 5 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $40 + ( $1,000 - $785 ) / 5 ] / [ ( 1,000 + $785 ) / 2 ]

Yield to maturity = [ $40 + $43 ] / $892.5  = $83 /$892.5 = 0.0645 = 0.093%

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Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost $11,000. This equipment will have a f
Furkat [3]

Answer:

Tax shield on depreciation = 600

Explanation:

given data

new piece of equipment = $11,000

salvage value = $1,000

marginal tax rate = 30%

average tax rate = 20%

time period = 5 year

to find out

net effect of annual depreciation on the free cash flow

solution

we know here cost of asset and  Salvage value so we get depreciation cost  

depreciation cost is = 11000 - 1000 = 10000  

and

annual depreciation = 2000  

so that Tax shield on depreciation will be

Tax shield on depreciation = 2000 × 30%

Tax shield on depreciation = 600

5 0
3 years ago
Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of steali
bixtya [17]

Answer:

C. Professional Ethics.

Explanation:

Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.

7 0
3 years ago
The local professional soccer team stadium displays an advertisement for domino’s pizza at halftime. What type of marketing it t
Vilka [71]

The type of marketing that this is is called business to customer strategy. This is called B2C marketing.

<h3> </h3><h3>What is a business to customer strategy? </h3>

This is a type of marketing strategy that has to do with the approach that businesses take to sell their goods and their services to the customers that they have.

The business here is utilizing the fact that they game is at the half time to sell their goods.

At this time, a lot of the audience would feel the need to be refreshed and would need something to eat

Read more on  business to customer strategy here:

brainly.com/question/24803497

3 0
2 years ago
If all investors become more less risk-averse, the SML will _______________ and stock required returns will ________.
zmey [24]

Answer:

Option B, have the same intercept with a flatter slope; fall.

Explanation:

Option B is correct because a more risk-averse person faces a steeper curve while the less risk-averse person faces a flatter slope. While the more risk-averse person has more return on the stock while the less risk-averse person has less return. Therefore, in the given situation, the SML will have the flatter slope and its return will fall. As it is a less risk-averse investor.

6 0
3 years ago
Suppose in the republic of sasquatch that the regulation of banking rested with the sasquatchian​ congress, including the determ
lianna [129]

Answer:

hello your question is incomplete here is the complete question

Suppose in the Republic of Sasquatch that the regulation of banking rested with the Sasquatchian​ Congress, including the determination of the reserve ratio. The Central Bank of Sasquatch is charged with regulating the money supply by using open market operations. In September​ 2015, the money supply was estimated to be 70 million yetis. At the same​ time, bank reserves were 8.4 million yetis and the reserve requirement was 12 percent. The banking​ industry, being​ "loaned up," lobbied the Congress to cut the reserve ratio. The Congress yielded and cut the reserve requirement to 10 percent.

The potential impact of this action could

a. decrease

b. increase

the money supply by ?

nothing

million yetis.

Answer : increase and million yetis

Explanation:

If the congress yields to the lobby by the banking industry and cut the reserve ratio requirement from 12 percent to 10 percent it significantly will affect the increase in money in supply by ( 1.4 million yetis )

and this increase in money supply will lead to an increase in loanable funds and this will encourage investors t take up loans in which the banking industry will benefit from interest charged on loanable funds given to the investors.

4 0
3 years ago
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