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
Kamila [148]
3 years ago
12

West Corp. issued 18-year bonds 2 years ago at a coupon rate of 9.5 percent. The bonds make semiannual payments. If these bonds

currently sell for 105 percent of par value, what is the YTM?
Business
1 answer:
Ira Lisetskai [31]3 years ago
4 0

Answer:

The answer is 4.232%

Explanation:

The formula for determining the price of a bond which can also be used to find Yield-to-Maturity(YTM) is:

PV = PMT/(1+r)^1 + PMT/(1+r)^2 .......PMT/(1+r)^1 PMT + FV/(1+r)^n

We are to calculate Yield-to-Maturity(YTM) which is the rate of return on the bond to an investor.

Using a Financial calculator. Input the following:

N = (18 years - 2years) x 2 = 32

1/Y = ?

PV = 109

PMT = 9.5/2 = 4.75

FV = 100

1/Y = 4.232%

You might be interested in
The physical flow reconciliation is a report that:
Diano4ka-milaya [45]

Answer: The correct answer is "A. reconciles the physical units started in a period with the physical units completed in that period.".

Explanation: The physical flow reconciliation: reconciles the physical units started in a period with the physical units completed in that period.

Through this process it is possible to control, how many units are started in a period and how many are finished in that period.

5 0
3 years ago
The investment timing decision relates to: Group of answer choices how frequently the cash flows of a project occur. how long th
AveGali [126]

Choosing when to start a project is related to the investment timing decision.

<h3>Is an investment's timing crucial?</h3>

The following are some advantages of market timing strategy:

  • Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
  • When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>

The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.

<h3>What is a timing option for investments?</h3>

The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.

<h3>What is an example of an investment decision?</h3>
  •  Decisions on investments can be made for the long- or short-term.
  • A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
  • A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.

learn more about investment decision here

<u>brainly.com/question/24246300</u>

#SPJ4

5 0
2 years ago
A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries
laiz [17]

Answer:

a) 32 refrigerators

b) 28.39 approximately 29 refrigerators

Explanation:

Given:

Cost of order, S = $100

H = 20% of 500 = 100

Cost of refrigerator = $500

Annual demand, D = 500

S.d = 10

Lead time, L = 7 days.

a) To find the economic order quantity, Q_opt, let's use the formula:

Q_opt = \sqrt{\frac{2*D*S}{H}}

= \sqrt{\frac{2*500*100}{100}} = 32

The economic order quantity is 32 refrigerators.

b) The reorder point, R, is calculated as:

R = (d' * L) + ( z * s.d)

Where d' is daily demand which is calculated by dividing annual demand by 365 days.

d' = 500/365 = 1.37

At 97% service probability.

Using the excel function, NORMSINV(0.97) = 1.88.

Therefore z = 1.88

Solving for R, we have:

R = (1.37 * 7) + (1.88 * 10)

= 28.39

≈ 29

If the distributor wants a 97% service probability, the reorder point, R, should be 29 refrigerators

8 0
2 years ago
Suppose the market for tortillas is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of
DedPeter [7]

Answer:

The supply of tortillas decreased

Explanation:

7 0
3 years ago
What is significant about the absolut vodka company in the context of advertising?.
8_murik_8 [283]
The very first ad, ABSOLUT PERFECTION, established the meme of wrapping visual and verbal puns around simple, striking imagery. Absolut became an iconic bottle when it piqued the interest of Andy Warhol, who created Absolut's famous print campaign in 1986
7 0
2 years ago
Read 2 more answers
Other questions:
  • How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold? quest
    14·1 answer
  • What was Henry Ford's output
    11·1 answer
  • Lucky wants to attach a goal coast of her life goal. What might she do this
    13·1 answer
  • "Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an a
    7·1 answer
  • The price of a gallon of gasoline in bonland is? $3.20. however, just before the? election, the government decides to fix the pr
    6·1 answer
  • Can someone please help me
    7·1 answer
  • Which of the following best exemplifies a public good?
    8·1 answer
  • You are relatively new to the company and have been asked to chair the next senior management meeting.
    15·1 answer
  • 3. Single strand, gossip, and cluster are examples of
    13·1 answer
  • When is the bargaining power of the buyer greater than that of the supplier?.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!