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topjm [15]
3 years ago
15

Wald Inc.'s bonds currently sell for $1,120 and have a par value of $1,000. They pay an $85 annual coupon and have a 20-year mat

urity, but they can be called in 5 years at $1,050. What return would an investor most likely earn, if interest rates remain at current levels for the foreseeable future
Business
1 answer:
ella [17]3 years ago
5 0

Answer:

A. 7.08%  

B. 6.49%  

C. 5.95%  

D. 6.71%  

E. 7.34%

The correct option is B,6.49%

Explanation:

The return that the investor would earn is the yield to maturity of the bond which is calculated using rate formula in excel as shown thus:

=rate(nper,pmt,-pv,fv)

nper is the number of coupon payments the bond would receive which 5 since the bond can be called in 5 years

pmt is the annual coupon of $85

pv is the current market price of $1,120

fv is the call price in 5 years which is $1,050

=rate(5,85,-1120,1050)=6.49%

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How the lack of characteristics of a good leader can affect an organization?​
maksim [4K]

Answer:

Poor leadership can have some devastating effects on your team. That's because a leader is so much more than just a figurehead.

Explanation:

Loss of motivation to work. ...

Poor sales performance. ...

Lack of ownership and transparency. ...

Mismanaged resources. ...

Poor work culture.

Poor Financial Results. A tangible result of poor leadership is often poor financial results and goal achievement. ...

No Synergy. Poor company and departmental leadership also inhibits the development of synergy. ...

Low Morale. ...

High Turnover.

3 0
4 years ago
Nash's Trading Post, LLC issued a five-year interest-bearing note payable for $222000 on January 1, 2019. Each January the compa
LiRa [457]

Answer:

balance sheet

liabilities

note payables (current portion) 44,000

non-current liabilities

long-term note payable   178,000

Explanation:

On December 31,2020 there will be a portion of the note that will be declared as current liability while another non-current as within 12-months there is payment due (to be more precise next day after the balance close)

Thus 222,000 - 44,000 = 178,000 long-term

while the 44,000 are declared short-term

6 0
3 years ago
You are planning to save for retirement over the next 25 years. To do this, you will invest $820 per month in a stock account an
alina1380 [7]

Answer:

The withdraw amount is "11,227.42".

Explanation:

The given values are:

In stock account,

PMT = $820

Interest rate = \frac{10.2 \ percent}{12}

N = 300

PV = 0

In Bond account,

PMT = $420

Interest rate = \frac{6.2 \ percent}{12}

N = 300

PV = 0

Now,

By using the FV (Future value) function, the value in Stock account will be:

= FV(rate,nper,pmt,[pv],[type])

= 1,125,795.30

By using the FV (Future value) function, the value in Stock account will be:

= FV(rate,nper,pmt,[pv],[type])

= 300,181.3321

After 25 years,

The value throughout the account, will be:

= 300,181.3321 + 1,125,795.30

= 1,425,976.63

By using the PMT function, we can find the with drawling amount. The amount will be:

= PMT(rate, nper, pv, [fv], [type])

= 11,227.42

4 0
3 years ago
Which statement about immigration is BEST supported by the information on the graph?
harkovskaia [24]

Answer:

between 1898 and 1906, immigration increased dramatically.

8 0
3 years ago
Hot and Cold Corp. makes disposable coffee and soft drink cups for use in fast-food restaurants, hospitals, convenience stores,
schepotkina [342]

Answer:

Star in BCG matrix

Explanation:

BCG matrix is a system that helps the organization to decide on product sales, investment, etc. In BCG matrix, the product is divided into four types: dog, cash cows, stars and question marks.  

stars - it is the type of product that makes high market share and growth. These produced large income but also require high investment

7 0
4 years ago
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