1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OverLord2011 [107]
3 years ago
6

AT&T 10-year, $1,000 par value bond is selling at $1,158.91. Interest on this bond is paid semiannually.

Business
1 answer:
Evgesh-ka [11]3 years ago
6 0

Answer:

Explanation:

Using YTM formula :

YTM = [PMT + {(FV-P) / n}] / [(FV+P)/2]

YTM = Yield to maturity = 14% = 0.14

PMT= Annual interest amount

FV = Face Value = $1000

P = Price =$1158.91

n = years to maturity = 10

 

0.14 = [PMT + {(1000 -1158.91) / 10}] / [(1000 +1158.91)/2]

0.14 = (PMT - 15.891) / 1079.455

PMT- 15.891 = 1079.455 * 0.14

PMT - 15.891 = 151.1237

PMT = 151.1237 -15.891

PMT = 135.23

So, Annual interest = $135.23

Annual interest rate = Annual interest / Face Value

= 135.23 / 1000

= 0.1352

=13.52%

Hence Annual Interest rate on the bond is 13.52%

You might be interested in
Listen to the NPR news piece about Rachel Carson, the author of A Fable for Tomorrow. You will note that the radio article menti
gavmur [86]

Answer:

Check the explanation

Explanation:

Rachel Carson received numerous attacks by agricultural and chemical industries due to the book she wrote called -Silent Spring', where she explained the repercussions to the atmosphere and that of human health in the using pesticides.

She has been tagged as a radical and unqualified scientist whose knowledge about science is limited. She was also accused of wanting to protect the lives of all the insects that spread diseases in humans and plants.

However, if we read concerning whom Rachel Carson was and what she stood for, we’ll notice that the arguments in various quarters are completely misguided.

She was an exceptional scientist and a writer on science topics, she investigated and cautioned on how the chemicals that government spread in the farms to kill pathogens insects, are also dangerous to all living things including humans.

Some of the chemical industry representatives even in this present time still do not concur with her; they are only concerned how to produce and sell more chemicals and they don’t even worry about their environmental consequences and damage. This is reason they prefer to berate her work and researches.

4 0
3 years ago
​Mid-Town Auto Parts Company uses the direct method to prepare its statement of cash flows. Refer to the following information r
Lera25 [3.4K]

Answer:

Collection from Customers =$487,000

Explanation:

Collection from Customers=account receivable beginning balance+sales revenue-account receivable ending balance

=97000+$519,000-$65,000

=$487,000

7 0
2 years ago
A U.S. automobile company sells many of its cars in countries that have lower taxes on corporate profits than the U.S. Why might
stira [4]

Answer:

It will be more profitable to vertically integrate because the company will be able to further reduce its costs.

Explanation:

Profit = Sales - Cost

The lower the cost, the higher the profit (if sales remains the same).

A Vertical integration strategy requires a company to <u>own or control its suppliers (backward integration) or its distributors or retailers (forward integration)</u>, and therefore, gain more control over its value chain.

<em>If the U.S. automobile company chooses to vertically integrate into the car retailing business in countries where it sells most of its cars, then it would cut out certain costs, such as the cost of contracting with independent car dealers, which would further improve profitability.</em>

Also, such forward integration into retailing means the company will develop processes along its value chain that will increase the efficiency of its operations.

4 0
3 years ago
An investor who owns a bond with a 9% coupon that pays interest semi-annually and matures in three years is considering its sale
tino4ka555 [31]

Answer:

0

Explanation:

7 0
3 years ago
Suppose that you just short sold 100 shares of Quiet Minds stock for $85.00 per share.
qaws [65]

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.  

4 0
2 years ago
Other questions:
  • How do firms examine productivity?
    12·1 answer
  • ou may pay $15,000 for an annuity that pays $2500 per year for the next 10 year. You want a real rate of return of 5%, and you e
    15·1 answer
  • The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment r
    5·2 answers
  • The following transactions occur for the Panther Detective Agency during the month of July:
    9·2 answers
  • Adam smith believed the invisible hand would do what for the economy?
    8·1 answer
  • Bramble Company uses a periodic inventory system. Details for the inventory account for the month of January, 2018 are as follow
    6·1 answer
  • Pharoah Company borrowed $1470000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note
    8·1 answer
  • Waterway Industries started the year with $66000 in its Common Stock account and a credit balance in Retained Earnings of $48400
    9·1 answer
  • Heedy Company is trying to decide how many units of merchandise to produce each month.The company policy is to have 20% of the n
    7·1 answer
  • Personal budget
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!