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m_a_m_a [10]
3 years ago
9

Dane purchased a 15-year, 10% bond in 2014. At the time, the yield to maturity (YTM) on the bond was 8.8%. The bond currently se

lls for $890. Assuming the bond is priced correctly, how does Dane's rate of return on the bond compare to the current YTM? Group of answer choices Rate of return > current YTM Rate of return = current YTM = 8.8% Rate of return < current YTM Rate of return = current YTM = 10%
Business
1 answer:
posledela3 years ago
4 0

Answer:

Rate of return < current YTM

Explanation:

In order to determine whether the current YTM is greater or less,we need to first of all determine the current YTM using excel rate formula as shown below:

=rate(nper,pmt,-pv,fv)

nper is the number of coupon payments the bond pay which is 15

pmt is the annual coupon payment of $100(10%*$1000)

pv is the current price of $890

fv is the face value of $1000

=rate(15,100,-890,1000)=11.58%

Since the rate of return is 8.8% while the current YTM is 11.58%,the third option is correct

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Sholpan [36]

The answer is the Status symbol.

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Status symbols frequently vary as a culture and its ideals evolve.

Different status symbols may also be dictated by one's line of work, and some uniform designs may be interpreted as status symbols.

Status symbols in capitalist society are frequently connected to material prosperity. Status symbols might alter depending on where they are used.

For instance, a physical scar may signify honor or bravery in cultures where warriors are revered, becoming a status symbol.

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Learn more about capitalist society:

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5 0
2 years ago
You are writing an e-mail to a potential employer about a job opportunity. what can you do to make sure the e-mail reflects your
patriot [66]
Ensure that the email is written in a concise, professional, and clean matter devoid of spelling and grammar errors
7 0
3 years ago
Malinda's auto dealership of imported cars made $895,000 in revenue. The manager has determined that the total expenses equal to
jarptica [38.1K]

Answer:

Profits: $297,000

Explanation:

Revenue is the money generated by a business by selling its products and services to customers. Expenses are the cost incurred in the production and selling of goods and services.

Profits arise when revenues exceed expenses.

For Malinda Auto dealership, the revenue ($895,000) exceed expenses($598,000). Therefore, the business will realize a profit.

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=$297,000

8 0
3 years ago
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Korolek [52]
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5 0
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Deffense [45]

Answer:

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4 0
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