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Vlad1618 [11]
3 years ago
9

A four-year bond has an 8% coupon rate and a face value of $1000. If the current price of the bond is $878.31, calculate the yie

ld to maturity of the bond (assuming annual interest payments). Group of answer choices
Business
1 answer:
k0ka [10]3 years ago
7 0

Answer:

Yield to maturity =11.75%

Explanation:

The yield to maturity to Maturity van be worked out using the formula below:

YM =( C + F-P/n)  ÷  ( 1/2× (F+P))

C- annual coupon,

F- face value ,

P- current price,

n- number of years to maturity

YM - Yield to maturity

C- 8%× 1000 = 80, P- 878.31, F- 1000

AYM =  80 + (1000-878.31)/4  ÷  1/2×  (1000+878.31)

        = 110.4225    ÷ 939.155

       = 11.75%

Yield to maturity =11.75%

You might be interested in
What does the SSN on the student financial application form mean?
Murrr4er [49]

Answer:

Social Security Number

5 0
3 years ago
Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.
Alex787 [66]

Answer:

$63,000

Explanation:

The computation of cases of cola were completed and transferred to Finished Goods Inventory during January is shown below:-

Completed and transferred to finished goods inventory is

= Case of cola as on Jan 1 work in process + completed & transferred out - ending work in process as on Jan 31

= $5,000 + $65,000 - $7,000

= $63,000

Hence, the number of cases of cola is $63,000

4 0
3 years ago
Metroplex Corporation will pay a $2.50 per share dividend next year. The company pledges to increase its dividend by 4.70 percen
postnew [5]

Answer: $27.47

Explanation:

Given: Growth rate =  4.70% per year = 0.0470 per year

Dividend of next year = $2.50

Expected rate of return on Stock =  13.80% =0.1380

Current price = (Dividend of next year ) ÷ (Expected rate - Growth rate)

= (2.50)÷ (0.1380-0.0470)

= (2.50) ÷ (0.091)

≈  $27.47

Hence,   you will pay  $27.47 for the company's stock today.

7 0
3 years ago
For businesses and organizations under recent compliance laws, data classification standards typically include private, confiden
Digiron [165]

Answer:

True

Explanation:

Businesses and organizations have their data regulated under recent compliance laws, and under these regulations data can be classified as private, confindential, interal use only, and public domain.

An example of public domain information is financial statements, especially if the corporation is public and trades shares in the market.

Lots of information have restricted access though, sometimes being only available to all the employees of the firm (interal use only), or a minority of them (confidential and private).

3 0
3 years ago
A certain bookstore chain has two stores, one in San Francisco and one in Los Angeles. It stocks three kinds of books: hardcover
Hoochie [10]

Answer:

                           Hard       Soft        Plastic

San Francisco 3,600           7,800       12,000  

Los Angeles  2,400            1,800        3,000

Explanation:

The sales during January were as follows:

                          Hard      Soft          Plastic

San Francisco 600              1,300           2,000  

Los Angeles  400                300              500

If the sales during the next five months were actually the same, then to determine total sales all we have to do is multiply January's sales by 6.

600 x 6 = 3,600         1,300 x 6 = 7,800         2,000 x 6 = 12,000

400 x 6 = 2,400           300 x 6 = 1,800            500 x 6 = 3,000

7 0
3 years ago
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