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vovangra [49]
3 years ago
14

What is the yield to maturity of a bond if the bond is sold at $985.48 today, pays annual coupon of 7% and matures in 12 years?

Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)
Business
1 answer:
AveGali [126]3 years ago
7 0

Answer:

Explanation:

  • The Yield to Maturity [YTM] of a Bond is calculated by using the following formula = Yield to Maturity [YTM] = Coupon Amount + [ (Face Value – Bond Price) / Maturity Years] / [(Face Value + Bond Price)/2]

  • Where, Coupon amount = $1000  x 7% x ½ = $35

  • Face Value = $1,000

  • Bond Price = $985.48

  • Maturity Years = 12 years x 2 = 24 Periods

  • Yield to Maturity [YTM] = Coupon Amount + [ (Face Value – Bond Price) / Maturity Years] / [(Face Value + Bond Price)/2]

  • = $35 + [ ($1,000 – $985.48) / 24 Years)] / [($1,000 + $985.48) / 2]

  • = [($35 – 0.605) / 992.74] x 100 = 3.46%

The Yield-to-Maturity (YTM) of this Bond = 3.46%

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Baylor Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of
inn [45]

Answer:

Cash= $183,950

Explanation:

Giving the following information:

Baylor Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $198,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

May:

Manufacturing cost= 198,200 - 28,800= $169,400

Cost for June= 169,400*0.25= 42,350

June:

Manufacturing cost= 217,600 - 28,800= $188,800

Cost from May= 42,350

Cost for July= 188,800*0.25= -47,200

Cash= $183,950

6 0
3 years ago
Which of the following best represents the stream of income that is available to common stockholders?
dmitriy555 [2]
Greeting's!

<span>c. earnings before interest and taxes .
______________________________
</span>
7 0
3 years ago
A detailed plan for the future that is usually expressed in formal quantitative terms is known as a:
Kipish [7]

Answer: (A) Budget

Explanation:

 Budget is one of the type of financial plan that is create according to our requirement and also budget.

A budget is one of the type of document  that is used for describe the detailed plan in the future and it is usually expressed into the quantitative terms.

 The main objective of the budget is to creating a proper plan based on the expenses, revenue, liabilities and the cost in an organization and it also helps in balancing our expenses with the income.    

 Therefore, Budget is the correct answer.

5 0
2 years ago
If the mortgage loan is 80% of the appraised value of a house, and the interest rate of 8% amounts to $460 interest for the firs
irga5000 [103]

The appraised value of the house is after calculating interest and the value is $86,250.

<h3>What is appraised value?</h3>

A qualified appraiser or valuer's assessment of the assessed value of the real property is what is meant by an appraised value or mortgage valuation. It is typically utilized as a pre-qualification criterion and risk-based pricing component in connection with a financial institution's issuance of mortgage loans.

Calculation of appraised value of the house:

  1. First, calculate the yearly interest. $5,520 in interest total every year ($460 x 12).
  2. Take a loan for $69,000 at an interest rate of.08 on $5,520.
  3. Next, subtract $86,250 from $69,000 to get the appraised value.

Hence, the total appraisal value is $86,250.

Learn more about appraised value :

brainly.com/question/21507493

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6 0
1 year ago
Novak Corp. bought equipment on January 1, 2022. The equipment cost $390000 and had an expected salvage value of $35000. The lif
nirvana33 [79]

Answer:

$177,000

Explanation:

In order to find the book value of the equipment we need to find the amount of depreciation per year. To do this we need to subtract the salvage value from the initial cost and then simply divide by 5 which is the life span of the equipment...

(390,000 - 35,000) / 5 = x

355,000 / 5 = x

71,000 = x

Now we see that the equipment will depreciate by $71,000 per year. In three years the depreciation would be

71,000 * 3 = 213,000

Now we simply subtract this value from the initial cost to get the book value in the third year

390,000 - 213,000 = 177,000

7 0
2 years ago
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