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sladkih [1.3K]
3 years ago
10

holdy Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20-year maturity, but they can be called i

n 5 years at $1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between the bond's YTM and its YTC?
Business
1 answer:
ziro4ka [17]3 years ago
3 0

Answer:

Yield to maturity (YTM) is 1.91% higher than yield to call (YTC).

Explanation:

YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = {$120 + [($1,000 - $1,275)/20]} / [($1,000 + $1,275)/2] = $106.25 / $1,137.50 = 9.34%

YTC = {coupon + [(call price - market value)/n]} / [(call price + market value)/2]

YTC = {$120 + [($1,120 - $1,275)/5]} / [($1,120 + $1,275)/2] = $89 / $1,197.50 = 7.43%

9.34% - 7.43% = 1.91%

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Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning in
RSB [31]

Answer:

$82

Explanation:

Month                            Quantity       rate         Total  

January purchase            7 letters       6             42

February                           5 letters       8             40

March                                6 letters       9             45

Total                                  18                                127

Number of letters sold = 6

Closing inventory = 18 - 6 = 12

Using LIFO , the last set of item purchased are the first to be sold , therefore the closing inventory will be

(5*8)+(7*6)= $82

3 0
3 years ago
Who is responsible for maintaining property records and issuing marriage licenses?
Irina-Kira [14]

Answer:

B. county clerk is the correct answer.

Explanation:

  • County clerk is responsible for maintaining property records and issuing marriage licenses.
  • A County Clerk responsible for maintaining records and filing birth certificates, notary bonds, death and marriage certificates of a country's population.
  • The County Clerk maintains documents of all regulatory body transactions, statutes and resolutions.
  • County Clerk Responsibilities is to scan the documents, helping with telephone queries, making election administration assignments, obtaining election data, creating and managing files, and preparing and filing different documents.

6 0
3 years ago
What makes communication dynamic?
almond37 [142]
Communicating is a very complicated task that takes a lot of patience. You must have the ability to hear and listen to each opinion or idea while taking into account their perspectives and where they are coming from. In this sense, you must also apply your own opinions and ideas while continuing to respect others. Although, listening and speaking to one another is but one of the levels that go into the success of holding dynamic communications. As humans, we tend to notice the smallest details of one person such as facial expressions, tone of voice,
body movements, etc. and we analyze all of these details in order to decide who they are, what they are feeling, what type of personality they have, and how we will react to this person. Because it always important to be aware of what impression you are giving off towards people as well as being understanding of their point of view in order to have dynamic communication.
3 0
3 years ago
Two gamblers bet $1 each on the successive tosses of acoin. Each has a bank of $6. What is the probability that:a They break eve
strojnjashka [21]

Answer:

Part a: The probability of breaking even in 6 tosses is 0.3125.

Part b: The probability that one payer wins all the money after the 10th toss is 0.0264.

Explanation:

Part a

P(success)=1/2=0.5

P(Failure)=1/2=0.5

Now for the break-even at the sixth toss

P(Break Even)=P(3 success out of 6)

P(3 success out of 6)

=^6C_3/(2^6)\\=5/16\\=0.3125

So the probability of breaking even in 6 tosses is 0.3125.

Part b:

So the probability that one of the player wins all the money after the 10th toss is given as the tenth toss is given as a win so

Wins in 9 tosses is given as 9!/7!=72

The probability that the other person wins

Wins in 8 out of 10 tosses is given as 10!/8!(10-8)!=10!/8!2!=45

So the probability of all the money is won by one of the gambler after the 10th toss is given as

P=number of wins in 9 tosses-Number of wins in 10 tosses/total number of tosses

P=(72-45)/2^16

P=0.0264

So the probability that one payer wins all the money after the 10th toss is 0.0264.

8 0
3 years ago
Reason for a bimodel distribution
DedPeter [7]

The reason for a bimodel distribution is that a bimodal distribution may occasionally result from merging data from two processes or populations.

<h3>What is a bimodel distribution?</h3>
  • Two modes comprise a bimodal distribution. In other words, the results of two distinct processes are integrated into a single collection of data.
  • The distribution sometimes goes by the name "double-peaked." Consider the distribution of production data over two shifts in a manufacturing facility.
  • Bimodal distributions frequently happen as a result of underlying events.
  • A bimodal distribution, for instance, can be seen in the amount of patrons who visit a restaurant each hour because people typically eat out for lunch and dinner.
  • The bimodal distribution is brought on by the underlying human behavior.
  • If a data set has two modes, it is bimodal. This indicates that no particular data value has the highest frequency of occurrence. Instead, the highest frequency is tied between two data values.

Learn more about bimodel distribution here:

brainly.com/question/14971511

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1 year ago
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