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slavikrds [6]
3 years ago
14

The Petit Chef Co. has 10.9 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments

and have a par value of $1,000. If the bonds currently sell for $1,117.33, what is the YTM

Business
1 answer:
Gre4nikov [31]3 years ago
8 0

Answer:

8.60%

Explanation:

We use the RATE formula i.e shown on the attached spreadsheet

Data provided in the question

Present value = $1,1173.33

Future value or Face value = $1,000  

PMT = 1,000 × 10.9% = $109

NPER = 7 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)

So, after solving this, the yield to maturity is 8.60%

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When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets.
zhenek [66]
True

Return to investment: margin+turnover
Margin-net operating income/ sales
Turnover-sales/average operating assets.
8 0
3 years ago
Which of the following best describes vertical integration? A. sell products to a supplier or a distributor B. develop the abili
jasenka [17]

Answer: B

Explanation:

A vertical integration is where a company owns another company in the same production line.

For example a company that bakes bread has a farm where wheat is cultivated, a marketing company and retail locations for the sale of the bread.

The advantages of Vertical integration include:

a. It reduces costs.

b. It increases efficiency.

c. It gives the firm greater control of the production process.

A major disadvantage of vertical integration is it requires huge capital outlay.

7 0
3 years ago
If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.
nirvana33 [79]

Answer:

Real GDP will rise by $100 million

Explanation:

Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]

Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE =  AS or NY or GDP

If AD or APE increases by $100 million :

AD or APE  > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE

So, GDP will also rise by $100 million

6 0
3 years ago
Which of the following is the best advice for written communication that is highly important?
Elodia [21]

Answer:

"D" is the correct answer!

Explanation:

Written communication is the use of a printed message, such as letters, training manuals, memos, proposals and emails. Emails. memos etc are all technology channels or apps.

4 0
2 years ago
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
Tju [1.3M]

The retailer was asking the designers to agree to <u>Exclusive distribution</u>.

<u>Explanation:</u>

Exclusive distribution is characterized as the arrangement under which a participant is a supplier and provider. It specifies that the seller can not offer their service or item to some other group. It attaches the contract that the commodity must be distributed to an exclusive seller. The retailer asks developers for exclusive supply as per the situation specified in the discussion. Retailer does not want the jewelry design to be sold to any other outlet or retailer for successful sale. Thus agreement on this matter is suggested by the retailer.

3 0
3 years ago
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