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
Nookie1986 [14]
3 years ago
8

has 10 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 1

07.8 percent of par. What is the current yield on the bonds?
Business
1 answer:
katovenus [111]3 years ago
5 0

Answer:

4.62%

Explanation:

we need to calculate the yield to maturity of the bond:

YTM = [coupon + (face value - market value)/n] / [(face value + market value)/2]

  • coupon = $50
  • face value = $1,000
  • market value = $1,078
  • n = 38 semiannual payments

YTM = [$50 + ($1,000 - $1,078)/38] / [($1,000 + $1,078)/2]

YTM = $47.95 / $1,039 = 4.615 ≈ 4.62%

You might be interested in
Serge stayed at a bed and breakfast in a mountain town. The bed and breakfast provides food and a comfortable
hram777 [196]

for me the best describes the roleof the bed and breakfast is sightseeing

7 0
3 years ago
Read 2 more answers
A variable annuity is a(n)
Volgvan

Answer:

The correct answer is B. non-exempt security under the Securities Act of 1933 because the purchaser bears the investment risk

Explanation:

With a variable annuity, the annuity funds are invested in securities such as bond funds or equity funds. In these cases, the performance of the funds will define the performance of the annuity money and how much the annuity owner will receive from it. In this case, in the variable annuities there is a certain investment risk that everyone must determine when investing their money. In summary, the amount of risk that everyone is in a position to adopt will determine the amount of acceptable risk and therefore what type of funds will be selected for the investment.

It is possible to consider using a variable annuity for those who:

  • They feel comfortable with stock market fluctuations and are willing to accept them in exchange for a greater return to inflation for a longer period of time.
  • They are young people who seek to plan for retirement by taking advantage of the long-term stock market.
7 0
3 years ago
The nth term of the GP is (-1)^n(2)^n.
Bingel [31]

Answer:

-2, 4 and -8

Explanation:

Given the nth term of a GP expressed as;

a_n = (-1)^n(2)^n

When n = 1

a_1 = (-1)^1(2)^1\\a_1 = -1 * 2\\a_1 = -2\\

when n = 2

a_2 = (-1)^2(2)^2\\a_2 = 1 * 4\\a_2 = 4\\

when n = 3

a_3 = (-1)^3(2)^3\\a_3 = -1 * 8\\a_3 = -8\\

Hence the first three terms of the sequence are -2, 4 and -8

5 0
3 years ago
All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one
Romashka [77]

Answer:

A.

The output will rise by more than it did when the previous unit was added.

Explanation:

7 0
2 years ago
If you are required to show proof of financial responsibility for the future, for how many years must the proof be kept? 1 year
Harrizon [31]

Answer:

For 2 years

Explanation:

Financial responsibility is the procedure or the process which is defined as managing the money and also the other similar assets, in a method which is considered as productive and in the best interest of family, business or individual.

So, in order to show the proof of the financial responsibility in the near future, business or individual needs to show the proof for the 2 years because to make the proof comparable with the previous year.

7 0
3 years ago
Other questions:
  • On July 15, 2018, the Nixon Car Company purchased 1,100 tires from the Harwell Company for $50 each. The terms of the sale were
    6·1 answer
  • The generic value chain consists of​ ________ activities and four support activities.
    8·1 answer
  • Deborah is a 29-year-old who lost her job as an associate producer for a radio station. after spending a few weeks out of work a
    15·1 answer
  • GNI figures are helpful in understanding an economy because they
    7·1 answer
  • Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $252,000 (original
    8·1 answer
  • If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
    7·1 answer
  • Alternative or non-traditional assessments are become more popular among teachers. One type of alternative assessment is called
    7·1 answer
  • Suppose a firm in a competitive market earned $3,000 in total revenue and had a marginal revenue of $30 for the last unit produc
    6·1 answer
  • A good percentage to start with for saving is ________________ percent of your teaching income.
    9·1 answer
  • Why are many oligopolistic market outcomes conveniently described by a prisoners' dilemma?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!