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tensa zangetsu [6.8K]
3 years ago
11

Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year ma

turity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? 6.63% 6.98% 7.35% 7.74% 8.12%
Business
1 answer:
Nadya [2.5K]3 years ago
3 0

Answer:

7.74%

Explanation:

The yield to call would be the internal rate of return considering the cahsflow until the bodn is called. W can solve for that using excel IRR function;

We list the cashflow in order.

F0 -1180

F1 105

F2 105

F3 105

F4 105

F5 1205 (105 coupon payment plus 1100 principal)

We now write the function and get the YTC

=IRR(B1:B6) 7.7366%

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Nimfa-mama [501]

Answer: C. II and III

Explanation:

There are 5,000,000 shares of PDQ Corporation as of when they declared the rights offering. This means that every share will get a right to buy stock.

However, as only 1,000,000 shares are being offered per the 5,000,000 shares outstanding it means that one stock may be purchased for every 5 rights.

A customer who owns 500 shares will therefore get 500 rights.

However with one stock up for sale per 5 rights they will receive the opportunity to buy;

= 500/5

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5 0
3 years ago
A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350
Triss [41]

Answer:

Ending inventory= $494

Explanation:

Giving the following information:

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6 0
3 years ago
Which is an example of a mandatory deduction on a pay stub?
Grace [21]

Answer:

Some mandatory payroll tax deductions that employers are required by law to withhold from an employee's paycheck include: Federal income tax withholding. Social Security & Medicare taxes – also known as FICA taxes.

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3 0
2 years ago
Pierce currently has $10,000. What was the value of his money five years ago if he has earned 5 percent interest each year?. . .
Vladimir [108]
Amount = $10000
Let us assume the principal = x
Amount of interest = 5%
Time = 5 years
Then
x (1 + i)^t = 10000
x(1 + 0.05)^5 = 10000
x(1.05)^5 = 10000
1.28x = 10000
x = 10000/1.276281
   = 7835.26
From the above deduction, it can be easily concluded that the correct option among all the options that are given in the question is the second option or option "B".
5 0
3 years ago
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Elena L [17]

Answer:

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two balled fists pressing the abdomen

B.

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C.

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D.

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Explanation:

3 0
3 years ago
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