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
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%

You might be interested in
On January​ 1, 2018,​ Jordan, Inc. acquired a machine for $ 1,000,000. The estimated useful life of the asset is five years. Res
klemol [59]

Answer:

Annual depreciation=$188,000

Explanation:

Giving the following information:

Purchasing price= $1,000,000

Salvage value= $60,000

Useful life= 5 years

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (1,000,000 - 60,000)/5

Annual depreciation=$188,000

6 0
3 years ago
Which item is important to consider when selecting a
GuDViN [60]

Answer:

Both APR and fees

Explanation:

The Annual Percentage Rate -APR is the interest rate a customer pays on a credit card per year. Credit cards extend loans to the holder every time they are used. If the credit card user does not pay the full amount on the due date, it attracts interest charges. The higher the APR, the more interest a cardholder will pay. In selecting a credit card provider, APR is the most important factor to consider.

Credit card attracts other fees other the interest. These fees include Balance Transfer Fee, Foreign Transaction Fee, Annual Fee, and Cash Advance Fee. These fees affect the customer's overall cost of using the credit card.  Customers should compare different credit card companies and select one with favorable fees.

4 0
3 years ago
Ruiz Co. provides the following unit sales forecast for the next three months: Sales units January February March 3,000 4,200 5,
Leokris [45]

Answer:

d. 0 3,120 units.

Explanation:

Consider the following formula to calculate the budgeted production

= Budgeted sales + Desired ending inventory - Beginning inventory available

= 3,000 + (4,200*10%) - 300  Setting the values of the previous formula.

= 3120 units

7 0
3 years ago
A work-at-home opportunity is available in which you will receive 2 percent of the sales for customers you refer to the company.
olga55 [171]

Answer:

$37,500

Explanation:

You receive 2% of the sales.

You have to earn $750 to break even, or cover the franchise cost.

So, if we let Sales be "x", we can say:

<u><em>2% of x would be 750</em></u>

What is 2% in decimal?? We divide by 100, so we have:

2% = 2/100 = 0.02

Now, we convert the word equation above to mathematical equation:

0.02 * x = 750

Now, we solve for x, the amount customers have to buy (or sales):

0.02*x=750\\x=\frac{750}{0.02}\\x=37,500

Hence,

Customers would have to buy $37,500 to cover the cost of this fee.

6 0
3 years ago
​Computers's Merchandise Inventory account at​ year-end is showing a balance of $ 43 comma 000. The physical count of inventory
Talja [164]

Explanation:

The journal entry is shown below:

Cost of goods sold Dr $1,400

        To Merchandise inventory $1,400

(Being the inventory shrinkage is recorded)

It is computed below:

= $43,000 - $41,600

= $1,400

For recording this given journal entry, we debited the cost of goods sold and credited the merchandise inventory.

8 0
3 years ago
Other questions:
  • A company recently issued 9% preferred stock. The preferred stock sold for $40 a share with a par of $20. The cost of issuing th
    6·1 answer
  • Entrepreneurs are scrappy in their quest to gather market intelligence and understand how customers respond to their offerings.
    15·1 answer
  • RF Company had January 1 inventory of $300,000 when it adopted dollar-value LIFO. During the year, purchases were $1,800,000 and
    15·2 answers
  • A marketing manager has discovered that relevant, internal secondary data don't exist to support a decision process. The next st
    14·1 answer
  • A warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet cert
    6·1 answer
  • Does anyone know what a good college would be to go to,for a vetanarian degree? and how many years does it take to become one?
    7·1 answer
  • Laskowski Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as fol
    5·1 answer
  • The exercise value is also called the strike price, but this term is generally used when discussing convertibles rather than fin
    8·1 answer
  • Simplify (27) 2/3 x (125) 1/3 step by step explanation plz​
    5·1 answer
  • The subject property has a total value of $280,000 by the sales comparison approach. A competitive neighborhood nearby has home
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!