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maks197457 [2]
3 years ago
15

Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a

6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,050. What is the bond's nominal yield to call?
Business
2 answers:
castortr0y [4]3 years ago
6 0

Answer:

5.27%

Explanation:

Step 1

Bond's current price.

Coupon rate 8.75%

YTM 6.50%

Maturity 15

Par value$1,000

Periods/year 2

Determine the bond's price

PMT/period $43.75

N 30

I/YR 3.25%

FV $1,000.00

PV = Price $1,213.55

Step 2

Using the bond current price to find the YTC

Yrs to call 6

Call price $1,050.00

Determine the bond's Yield to call

N 12

PV $1,213.55

PMT $43.75

FV $1,050.00

I/YR 2.64%

Nominal YTC 5.27%

Therefore the bond's nominal yield to call is 5.27%

aleksklad [387]3 years ago
4 0

Answer:

5.01%

Explanation:

The bond nominal yield to call is  5.01%

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Which of the following is an example of a relationship with a negative slope?
iren [92.7K]

Answer:

c. ​ More items purchased when prices drop

Explanation:

Lets determine the two variables and their relation in each of the cases.

a)

Quality decreases. Quantity purchased decreases. Both item decreasing is a positive relation and thus would not yield a negative slope.

b)

Spending rises. Income rises. Both items increasing is a positive relation and thus would not yield a negative slope.

c)

Purchases increase. Price decrease. One item increases while the other decreases and thus is a negative relationship with a negative slope.

d)

Qty sold increases. Quality increases. Both items increasing is a positive relation and thus would not yield a negative slope.

Hope that helps.

5 0
3 years ago
What is the difference between a debit card and a cash card? A. A debit card is less secure than a cash card.  B. A cash card c
Nimfa-mama [501]

Answer:

C. A cash card is not tied to a bank account.

Explanation:

3 0
3 years ago
An investor owns 60 shares of common stock of a company issuing new shares in a rights offering. The stock trades at $12 per sha
Mkey [24]

Answer:

7 shares and $70

Explanation:

The computation is shown below:

The additional shares is

= 60 shares ÷ 9

= 7 shares

And, the amount  of money that have to be paid is

= Additional shares × purchase price

= 7 × $10

= $70

Therefore the same would be considered relevant

4 0
3 years ago
an example of the frictionally unemployed is a(n): Group of answer choices geologist who is permanently laid off from an oil com
Anna35 [415]

Answer:

real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California

Explanation:

Frictional unemployment occurs when Labour leaves his job in search of another one. It is the period between Labour leaves current employment and get another one.

geologist who is permanently laid off from an oil company due to a new technological advance is an example of structural unemployment

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I hope my answer helps you

8 0
2 years ago
Alicia and Nick are buying a $725,000 home. They have been approved for a 5.25% APR, 30-year mortgage. They made a 20% down paym
UkoKoshka [18]

Answer:

R=An*i : [1-(1+i)^-n]

R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]

R=3,202.78

Monthly payments =$ 3,202.78

Explanation:

Given

Home Cost=725,000

downpayment= 20% of 725,000

An=725,000 - 0.2 *725,000

An= 580,000

t=30 yrs

n=12 (monthly)

j=5.25% (interest rate)

--> i=j/m

i=0.0525/12

-->n=m*t

n=12*30

n=360

FInd monthly pmts ( R) =?

R=An*i : [1-(1+i)^-n]

R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]

R=3,202.78

6 0
3 years ago
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