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prohojiy [21]
3 years ago
15

When using trial and error to compute the yield to maturity (YTM) for a 6 percent coupon bond that trades at a premium, the proc

ess can be shortened if the initial guess is _______ 6 percent.
Business
2 answers:
k0ka [10]3 years ago
6 0

Answer:

less than 6%

Explanation:

when a bond trades at a premium, it means the bond's coupon rate was higher than the market rate, so investors are willing to pay more to purchase the bond, e.g. bond's face value is $1,000, if it is sold at a premium its market price will be higher than $1,000.

To determine the price of a bond sold at a premium or at a discount, you must determine the present value of the coupons paid plus the face value at maturity date. But if you are going to do this manually, for a bond that sells at a premium and its coupon rate is 6%, the actual bond yield will be lower than 6%.

kvv77 [185]3 years ago
3 0

Answer:

The correct answer is Lower than.

Explanation:

The yield at maturity (YTM) of a bond is the total return (which includes interest and capital gain) that it obtains upon expiration. It is expressed as a percentage and tells investors what the return will be if they acquire the bond and keep it until the issuer reimburses it. It is difficult to calculate the yield to maturity with precision, but you can approach its value if you use a profitability table or one of the many calculators that are available on the Internet for this purpose.

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David has a few options regarding Sedona Stout pricing:
Elina [12.6K]

Answer:

I would suggest he decrease the sales price.

Explanation:

Because it will might make people rush the product due to its low price compared to other products of another brand.

The low price will create a high demand for the product therefore causing the quantity of the products being produced to increase.

The quality of the product will be very good since the quality is not being reduced only the price therefore it might result in not having the maximum profit needed.

6 0
3 years ago
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A winning strategy is one that results in a company becoming the dominant industry leader. fits the company's internal and exter
Anastasy [175]

Answer:

The options are not properly aligned.Find the same question with proper alignment in the attached.

A winning strategy fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

Explanation:

For a strategy to be tagged a winning one,it must carefully take into the consideration the internal and external environments that the business operates in,such that internal strengths and weaknesses can be discovered as well as external opportunities and threats.

In addition, it must also consider the capabilities ans skills peculiar to the business that are difficult to imitate by others, in essence competitive advantage.

Above all, the strategy must positively impact the bottom-line,in that the business records positive strong performances period after period.

Download xlsx
4 0
3 years ago
A company has a beginning retained earnings balance of $100,000. It has net income for the current year of $50,000 and paid $10,
Brut [27]

Answer:

The ending balance of retained earnings for the company $ 140.000

Explanation:

Retained Earnings increase the balance with the Net Income of each year that it's not withdrawalled by the owner or because are not paid dividends, to this case the owner only withdraw $10.000 of $50.000 generated during the year.

4 0
3 years ago
Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Vari
olasank [31]

Answer:

unitary absorption production cost= $128

Explanation:

The a<u>bsorption costing method</u> includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

<u>First, we need to calculate the unitary fixed manufacturing overhead:</u>

<u></u>

Unitary fixed overhead= 441,000 / 7,000= $63

<u>Now, the unitary absorption production cost:</u>

unitary absorption production cost= 51 + 12 + 2 + 63

unitary absorption production cost= $128

6 0
3 years ago
In a college-level course, Mrs. Smith gives the lectures, sets the due dates, and is the expert on the material. Mr. Doe helps g
Cerrena [4.2K]

Answer:

Mrs. Smith is a postsecondary teacher, and Mr. Doe is a teaching assistant.

Explanation:

Mrs. Smith gives the lectures, sets the due dates, and is an expert on the material of a <em>"college-level course"</em>, therefore, she has to be a postsecondary teacher, as the teacher is responsible for giving the lectures, and has to be an expert on the material.

<em />

Mr. Doe helps grade papers, offers tutoring sessions for the students, and attends the lectures. From my experience and the phrase <em>"helps grade papers" </em>rather than just <em>"grades the papers", </em>we can conclude that Mr. Doe is the teaching assistant. <em> </em>

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3 years ago
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