1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
Judith Thompson, the manager of the student center cafeteria, has added pizza to the menu. The pizza is ordered frozen from a lo
erica [24]

Answer:

9 pizzas

Explanation:

Given that:

A pizza is ordered frozen from a local pizza establishment and baked at the cafeteria.

Judith anticipates a weekly demand of 10 pizzas.

Opening weeks in a year = 45 weeks

Opening days in a week = 5 days

Daily demand =  10/5 = 2

Ordering cost = $15

Holding cost = $0.40 /pizza/year

Lead time = 4 days

Safety stock = 1 pizza

The objective is to determine the optimal reorder point.

The optimal reorder point = (daily demand × lead time) + safety stock

The optimal reorder point =( 2 × 4 ) + 1

The optimal reorder point = 8 + 1

The optimal reorder point = 9 pizzas

6 0
3 years ago
Indicate all items in the following list that are not consumption goods and services and explain why.Item a​: A chocolate barIte
natima [27]

Answer: Option B, D , E

Explanation: In simple words, goods which are not used in the production of other goods rather consumed by the individual to satisfy current wants is called consumer goods.

So, form the above explanation we can conclude that a chocolate bar and a golf ball are consumer goods among all options.

.

B. A ski lift will be used continuously by the owner for its business operation. Hence, not a consumer good.

D. A shopping mall cannot be considered a good. It is a fixed asset to the entity owning it. Hence, not a consumer good.

E. A train will continuously used by the organisation owning it for its business purpose. Hence , not a consumer good.

8 0
3 years ago
Secondary school falls between:
Trava [24]

Answer:

Secondary school is from grades 7-12 (middle school except for 6th grade and then all of high school)

So it falls between primary school and college

8 0
3 years ago
Read 2 more answers
The following selected data relates to Green with Envy Corporation Total Fixed Costs: $25,000 Selling Price Per Unit: $30.00 Var
Ira Lisetskai [31]

Answer:

4167

Explanation:

Contribution margin = fixed cost / (sales price per unit - variable cost per unit

$25,000 / ($30 - $24) = 4167.

8 0
3 years ago
April, a high school student, doesn’t know her folks are trying to dig out of a financial crisis. Alone one day, she answers the
Bad White [126]
The collector correctly informed what she should have, though she crossed the line when she started directly assaulting April's dad and asked for his personal information.
7 0
3 years ago
Other questions:
  • Examples of workplace discrimination can include, but are not limited to :
    6·1 answer
  • Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of retur
    10·2 answers
  • Can someone help me out with this answer?
    8·1 answer
  • Which is not one of the financial costs of a recall? communication costs marketing costs legal costs engineering costs?
    9·1 answer
  • How can a system administrator give the sales operations team read/write access to all escalated cases? Universal Containers set
    10·1 answer
  • Land, labor, and capital also are known as factors of ?
    9·1 answer
  • Consider the CAPM. The risk-free rate is 5%, and the expected return on the market is 15%. What is the beta on a stock with an e
    5·1 answer
  • In a market segment approach, which statement below dose not apply​
    14·1 answer
  • Bobby decides to sell lemonade on a hot summer day. If Bobby sells 25 glasses of lemonade for $3.00 per cup, and his average tot
    12·1 answer
  • What is the marginal revenue and marginal cost for this diagram?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!