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wlad13 [49]
3 years ago
14

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p

ar value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's nominal yield to call
Business
1 answer:
tester [92]3 years ago
8 0

Answer:

4.40

Explanation:

For the nature of the Yield to Call and Yield to maturity

You can eiher solve with excel, a financial calculation or with approximation method

This will be the formula for approximation method

YTM = \frac{PTM + \frac{C-F}{n }}{\frac{PTM+F}{2}}

PTM= 41.25 (1,000 x 8.25 = 82.5 annual interest divide by 2 as there are semiannual payment)

C= 1045 This is the value of the called bond

F= 1000 The face value of the bond

n= 12 (6 years 2 payment per year)

We plug this into the formula and solve

YTM = \frac{C + \frac{C-P}{n }}{\frac{C+P}{2}}

partiel result of the upper part: 45

partial result, divisor: 1022.5

quotient 4.4009780%

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Although you may not have received the e-mail we have been informed that the division head of the Finance Department is leaving
Orlov [11]

Answer:

B.

Explanation:

The sentence is too long and it is missing proper punctuations(like a comma). Reading it without punctuation does not provide room for breathing and therefore needs editing. It will be correct if framed like this; Although you may not have received the e-mail, we have been informed that the division head of the Finance Department is leaving at the end of the month. This sentence has a comma in the right place.

8 0
3 years ago
An oligopolistic market structure is distinguished by several characteristics, one of which is market control by a few large fir
hichkok12 [17]

Answer: Option A

Explanation: The basic organisational structure and several different characteristics prevailing in a business environment together constitutes a market structure. In an oligopolistic there are very few large firms which dominate the market, for example - auto industry.

As firms in the oligopolistic market are very high this results in high concentration in the market. Each firm in this market structure operates in so large scale that actions of one affects the operations of others.

Usually the capital need in such industries is too large making it difficult to entry also the need for several licenses acts as barriers to entry but there is no such thing like NO ENTRY in such industries.

5 0
2 years ago
Suppose you had invested $1000 in a company's stock, and then you later sold it for $1100. what is the % return on your investme
Tresset [83]
% return would be (total profit / total invested) * 100 so
( 100 / 1000 ) * 100 = 10%
5 0
3 years ago
Read 2 more answers
Melissa is a very good middle manager. However, she has for a very long time wanted to open her own business. Which of Melissa's
mash [69]

Melissa's characteristics that are not consistent with entrepreneurship is that Melissa tends to put things off until later.

<h3>What is entrepreneurship?</h3>

Entrepreneurship refers to the activity of setting up a business that takes financial risks in the hope of profit.

The missing options in the questions are

  • Melissa has high self-confidence.
  • Melissa tends to put things off until later.
  • She is untroubled by uncertainty.
  • She has a high need to achieve.
  • She has a high energy level.

Melissa is a very good middle manager. However, she has for a very long time wanted to open her own business. Melissa's characteristics that are not consistent with entrepreneurship are she tends to put things off until later.

Therefore, B is the correct option.

Learn more about Entrepreneurship here:

brainly.com/question/18203575

#SPJ1

5 0
2 years ago
An income tax is progressive if the
UkoKoshka [18]

Answer:

Option C- An income tax is progressive if the percentage of income paid as taxes increases as income increases.

Explanation:

Majorly, there are three types of Tax systems; these are:  Progressive, regressive and proportional.

A tax in which the tax rate increases as the taxable amount increases is known as a progressive tax.

The term "progressive" refers to the way the tax rate progresses from low to high, such that a taxpayer's average tax rate is less than the person's marginal tax rate.

Also,a progressive tax is  applicable to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. It is imposed with the aim of reducing the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay.

Thus, an income tax is progressive if the percentage of income paid as taxes increases as income increases.

6 0
3 years ago
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