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Fantom [35]
3 years ago
8

Skolits Corp. issued 15-year bonds 2 years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bon

ds currently sell for 103 percent of par value, what is the YTM?
Business
1 answer:
Crazy boy [7]3 years ago
7 0

Answer:

6.94%

Explanation:

The yield to maturity can be computed using excel rate function found below:

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

nper is the coupons that bond has left to pay i.e 26 semiannual coupons in 13 years

pmt is the semiannual coupon amount i.e $1000*7.3%*6/12=36.5

pv is the current market price i.e 103%*$1000=$1030

fv is the face value of $1000

=rate(26,36.5,-1030,1000)=3.47%

semiannual yield =3.47%

annual yield =3.47% *2=6.94%

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A 6.5 percent coupon bond with 14 years left to maturity is priced to offer a 7.2 percent yield to maturity. You believe that in
olasank [31]

Answer:

The correct answer is : 35.49

Explanation:

Calculation of the current bond price:

N = 28, I = 3.6, PMT = 32.50

FV = 1,000; CPT PV = -938.89

Calculation of the price in one year:

N = 26, I = 3.4, PMT = 32.50,

FV = 1,000; CPT PV = 974.38

So, the dollar change in price is:

$974.38 - $938.89 = $35.49

5 0
3 years ago
You are responsible for staffing a decision-making team that must be able to share information openly and honestly to perform we
MakcuM [25]

Answer:

The correct answer is letter "C": Communication abilities.

Explanation:

Decision-making teams are those that analyze diverse information of a company such as financial statements to find out what the best course of action for the company is. If the <em>Human Resources</em> (HR) department of a company has the task of hiring individuals who will be in charge of the decision-making and share of those choices, the profile of the applicant must meet optimal communication abilities.

<em>Empathy, confidence, clarity, </em>and <em>cohesion</em> are the characteristics employees must have to transmit ideas to other workers effectively whether the news is positive or negative.

5 0
3 years ago
Martinez Company has an old factory machine that cost $66,000. The machine has accumulated depreciation of $36,960. Martinez has
brilliants [131]

Answer:

Journal entries

Explanation:

The journal entries are as follows

(a) Cash A/c Dr $33,000

   Accumulated depreciation A/c Dr $36,960

            To Factory machine A/c $66,000

            To Profit on sale of factory machine A/c $3,960

(Being the sale of machinery is recorded and the remaining balance is credited to the profit on sale of factory machine account)

(b) Cash A/c Dr $19,800

    Loss on sale of factory machine A/c $9,240

    Accumulated depreciation A/c Dr $36,960

            To Factory machine A/c $66,000

(Being the sale of machinery is recorded and the remaining balance is debited to the loss on sale of factory machine account)

8 0
3 years ago
Which of the following is an example of a negative externality?a. bad weather reduces the size of the wheat cropb. a reduction i
wlad13 [49]

Answer:<em> Negative externality is defined as the cost that is incurred by a individual who isn't involved in the economic transaction.</em>

In the above question, the following is the example of negative externality: <u><em>smoking harms the health of nonsmokers who are nearby.</em></u>

Here, the cost is incurred by the nonsmokers who are standing nearby individuals who prefer smoking. Thus creating negative externality.

<u><em>Therefore, the correct option is (c)</em></u>

7 0
3 years ago
The following data is obtained from the general records in the shipping department at Rapid Parcel Delivery Company for August:
solong [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
3 0
3 years ago
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