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Tasya [4]
3 years ago
13

What is the yield to maturity of a bond that as a face value of $1,000, is currently selling for $980, has a 5% coupon (paid sem

i-annually) and matures in 5 years.

Business
1 answer:
Ghella [55]3 years ago
7 0

Answer:

5.47%

Explanation:

The computation of yield to maturity is shown in the attachment:

Given that

FV = $1000

PV = ($980)

PMT = 5% ÷ 2 × 1,000  = $25

Number of years = 5 years × 2 =  10 Years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the yield to maturity is

= 2.73 × 2

= 5.46%

Therefore with the help of spreadsheets (as attached),  we could explain in a better manner.

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Answer and Explanation:

The journal entry is shown below:

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5 0
4 years ago
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Eddie was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Eddie perceived price as _____
Inessa [10]

Answer:

Here answer to the first fill in the blank is money paid and answer for the second fill in the blank is overall sacrifice.

Explanation:

Here Eddie has perceived price as money paid for the purchase of his favorite beverage, he is ready to drive 30 miles for this beverage , just because he is saving a dollar on it, so from the Eddie's point view , driving 30 miles to get the beverage is worth it . But as per the most of the customers , Eddie is making an overall sacrifice by driving 30 miles to get the beverage , just because he is saving dollar on it, so from the most customers point of view , driving 30 miles is not worth it and a lot of sacrifice is being made.

7 0
3 years ago
You are analyzing an investment property. You forecast the effective gross income to be $396,000. The operating expenses for thi
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Answer:

<em> $220,000</em>

Explanation:

Given:

Effective Gross Income(EGF) : $396,000

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