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SSSSS [86.1K]
4 years ago
14

Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year matur

ity, but they can be called in 5 years at $1,100. What is their yield to maturity (YTM)?
Business
1 answer:
Dovator [93]4 years ago
3 0

Answer:

Their yield to maturity (YTM) is 6.11%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $65

Selling price = P = $1,040

Number of periods = n = 15 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $65 + ( $1,000 - $1,040 ) / 15 ] / [ ( 1,000 + $$1,040 ) / 2 ]

Yield to maturity = [ $65 - 2.67 ] / $1,020 = $62.33 / $1,020 = 0.0611 = 6.11%

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solong [7]

Answer:

C. $12,000 under the cash method and $4,000 under the accrual method

Explanation:

Under the cash basis of accounting, whenever an amount is received or paid, it is recognized in the books of accounts

Whereas, on the accrual basis of accounting, the cash received / payment or not it is recognized in the books of accounts. It is recorded when it is earned not when it is received or paid.  

So, by this above information

The cash method would recognize $12,000 ($1,000 × 12 months)

Whereas

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We assume the books are closed on December, 31

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3 years ago
"this process of continuous alteration was applied not only to newspapers, but to books, periodicals, pamphlets, posters, leafle
natta225 [31]
<span>Answer: This passage refers to the process of changing the past, which is Winston's job. By controlling the past, the Party is able to manipulate the minds of Party members.</span>
7 0
3 years ago
Two mutually exclusive investment opportunities require an initial investment of $7 million. Investment A pays $1.5 million per
Nataly_w [17]

Answer:The cost of capital that will make both investments equal is 17.045%

Explanation:

Investment A

$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.

Value of Investment A = 1500 000/r

Investment B

$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.

Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)

Value of investment B = 1236000/(r - 0.03)

1500 000/r = 1236000/(r - 0.03)

1236000(r) = 1500000(r - 0.03)

(r - 0.03) = 1236000( r)/1500000

r - 0.03 = 0.824r

r - 0.824r = 0.03 = 0.176r = 0.03

r = 0.03/0.176 = 0.170454545

R = 17.045%

The cost of capital that will make both investments to be equal is 17.045%

4 0
3 years ago
The Nixon Corporation’s common stock has a beta of 1.3. If the risk-free rate is 4.4 percent and the expected return on the mark
Xelga [282]

Answer:

11.68%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.4% + 1.3 × (10% - 4.4%)

= 4.4% + 1.3 × 5.6%

= 4.4% + 7.28%

= 11.68%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

8 0
3 years ago
Which ad format is available on a Smart Shopping campaign but not a Standard Shopping campaign? certification
Mrac [35]

Certification campaign is the ad format is available on a Smart Shopping campaign but not a Standard Shopping campaign.

<h3>What is certification campaign?</h3>

This certification campaign serves as a subtype campaign that combines Standard Shopping and display remarketing campaigns.

This type of.l campaign uses automated bidding and ad placement to promote your products.

Learn more about certification campaign at;

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