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prohojiy [21]
2 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]2 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]2 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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Naddika [18.5K]

Credentialing resource management activity identifies and verifies that personnel is qualified.

<h3>What is management?</h3>
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4 0
1 year ago
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $127,000.
Brut [27]

Answer:

b. $31,000

Explanation:

The computation of the depreciation expense using the straight-line method for the second year is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($127,000- $3,000) ÷ (4 years)  

= ($124,000) ÷ (4 years)  

= $31,000

Hence, the correct option is b. $31,000

The units are to be ignored as the method i.e used is straight line so the same is to be considered

6 0
3 years ago
Internet privacy has become a major issue. In fact, in Europe there are privacy laws to limit how much information websites can
g100num [7]

a. Greyhound bus system

6 0
2 years ago
On July 23 of the current year, Dakota Mining Co. pays $6,492,240 for land estimated to contain 9,144,000 tons of recoverable or
Neko [114]

Answer:

a. Debit Land accounts  $6,492,240

   Credit Cash account   $6,492,240

Being entries to record the purchase of land

and for the payment and installation of machinery,

b. Debit Machinery account (fixed asset)  $1,280,160

Credit Cash accounts    $1,280,160

Being entries to record the purchase and installation of machinery

Explanation:

When an asset is purchased with cash, the entries required are debit asset and credit cash. Such asset includes land, equipment, building, mines, inventory etc.

As such to record the purchase of a land,

Debit Land accounts

Credit Cash account

and for the payment and installation of machinery,

Debit Machinery account (fixed asset)

Credit Cash accounts

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3 years ago
If you cross the _____, you will either pass into the next day or the previous day, depending on whether you are moving east or
IrinaK [193]
Equator great circle route
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