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.)
2 answers:
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Answer:
d. 15.09
Explanation:
425,000 sales
52,500 AR
year of 365 days
<u>Days Sales Outstanding</u>
<u>Average days late</u>
45.09 - 30 = 15.09
in average customer pays within 45 days.
That is 15.09 days above the allowed credit period.