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IceJOKER [234]
3 years ago
9

DMC Inc. Is planning to issue a $1,000 face value bond with an annual coupon rate of 10% that matures in 20 years. DMC is planni

ng to pay semiannual interest payments. Similar DMC bonds are quoting at 95% of par. What is yield to maturity for this bond?
Mathematics
1 answer:
creativ13 [48]3 years ago
3 0

Answer: 10.6%

Step-by-step explanation:

Given the following :

Face value (FV) = $1000

Coupon rate (C) = 10% paid semianually

Time to maturity = 20 years ; number of periods =( 20 * 2) = 40 (Semi-annual)

Current trading price of bond = 95% * 1000 = $950

Payment per period = (10%) / 2 * 1000 = 0.05 * 1000 = 50

Inputting the parameters above into the the yield to maturity calculator with semiannual payment,

Yield to maturity (YTM) = 10.6%

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The area of a triangle can be calculated using the formula 

1/2 (base) (height)

Let's substitute our known values, letting x represent the value of the height of the triangle.

16  = 1/2* x* 2x

Let's Simplify!

16 = x^2

Finally, lets take the square root of both sides, to get rid of the exponent on the right side of the equation.

x= positive OR negative 4.

However, because x is equal to the height, we know that it can't be negative, so we know that it is positive 4.

The height of the triangle = 4 inches
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6 0
3 years ago
If a cylinder holds a volume of 100 cm3, and is 30 cm tall, which is the area of the bottom of the cylinder?
Vesna [10]

=πr2h


Area of circle
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=V/h
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4 0
3 years ago
Help please Help please
Salsk061 [2.6K]

Answer:

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Step-by-step explanation:


3 0
3 years ago
If 5/8 yards of fabric costs 3.75 dollars what does one yard cost
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Answer:

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Step-by-step explanation:

its right bro

5 0
4 years ago
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