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saul85 [17]
4 years ago
6

A 10-year maturity, 6.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,010. The bond c

urrently sells at a yield to maturity of 6% (3% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. What is the yield to call annually if the call price is only $960? (Do not round intermediate calculations. Round your answer to 3 decimal places.) c. What is the yield to call annually if the call price is $1,010, but the bond can be called in two years instead of five years? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Business
2 answers:
Semmy [17]4 years ago
4 0

Answer:

Please find attached file for complete answer solution and explanation of same question.

Explanation:

Genrish500 [490]4 years ago
3 0

Answer:

1a.2.388% 1b.3.469% 1c.5.970%

Explanation:

YTM formula

=C+F-P/n ÷F+P/2 where;

F= face value

P= price

C= coupon

n= period

in this case

F=$1000 P=$1010 n=5 C =1000*6.5=65

Annually=65×2=130

substituting to formula

130+1000-1010/5 ÷1000+1010/2

=0.02388/2.388%

If 960

130+1000-960/5 ÷1000+960/2

=0.03469/3.469%

If collable in 2 years price 1010

130+1000-1010/2 ÷ 1000+1010/2

=0.05970/5.970%

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MrRissso [65]

The expansionary fiscal policy will shift the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.

<h3>What is the below full employment?</h3>

Its means when an the short-run real gross domestic product is lower than that same long-run potential real gross domestic product.

Hence, the economic situation will elicit a policy of expansionary fiscal which will affect the aggregate demand graph.

Therefore, the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.

Read more about aggregate demand

<em>brainly.com/question/1490249</em>

7 0
3 years ago
Managers use _____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform
Phoenix [80]

Answer:

Operational goals

Explanation:

The operational goals are the goals that refer to the day to day targets so that the daily requirement of the company would be fulfilled that would result to fulfill the larger requirement at a later time as if the daily targets are fulfilled so the chance of fulfilling the larger task is high

To fulfill the daily task, the efficiency and effectiveness of the employees is equally important that could help the organization to achieves its desired targets and the objectives

8 0
3 years ago
Under process model, organizational effectiveness is portrayed by having internal conflict where information flows easily both h
andreev551 [17]

Answer:

True

Explanation:

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In the process model, the effectiveness of an organization would be portrayed by the conflict that occurs internally. It could be the situation when the flow of the information is in a horizontal way and in a vertical way and the functioning of the operations internally is quite smooth and works with trust towards individuals

Therefore the given statement is true

8 0
3 years ago
RSR
Reptile [31]

Answer:

D. liabilities.

Explanation:

Payables are payments the business is expecting to make to its suppliers. They represent the goods and services that the company has received but has not paid. Payables are there amounts a business owes to other parties. They are debts are hence should be recorded as liabilities.

Liabilities are the financial obligations a business owe to third parties. They are debts incurred in the normal course of business operations. Liabilities are grouped as either current or long-term. Current liabilities are due within the current financial year, while long-term are payable in future financial periods.

4 0
3 years ago
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quester [9]
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During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
4 0
3 years ago
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