Objectives are like goals that you want to accomplish, strategies are the methods to get there
D anyone interested in the topic
Answer:
C. Except it isn't Orin that will avoid the taxes, but his heirs.
Explanation:
Answer:
6%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. It is the long term return of the bond which is expressed in annual term.
Face value = F = $1,000
Coupon payment = $1,000 x 7.5% = $75
Selling price = P = $1110.40
Number of payment = n = 10 years
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $75 + ( $1,000 - $1,110.4 ) / 10 ] / [ ( $1,000 + $1,110.4 ) / 2 ]
Yield to maturity = [ $75 - 11.04 ] / $1,055.2
Yield to maturity = $63.96 / $1,055.2
Yield to maturity = 0.0606 = 6.06%
Rounded off to whole percentage 6%
