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
Magnira corp., a manufacturer of hygiene and personal care products, launches a new toothpaste "tidy" that is more effective in
Ivenika [448]
The advertisement of the new toothpaste "tidy" that provides highly valid research information is an example of scientific execution style. It is a type of marketing style that uses research or scientific<span> evidence to give a brand superiority over competitors. The consumer gets scientific information about the product.</span>
5 0
3 years ago
What term means the unused option when deciding how to use one's<br> resources.
andrezito [222]

Answer:

Opportunity cost

6 0
2 years ago
$1,200 is received at the beginning of year 1, $2,200 is received at the beginning of year 2, and $3,300 is received at the begi
mart [117]

Answer:

Their combined future value will be 8,141.59.

Explanation:

Each deposit is invested at 12%, but for a different amount of years. So, the best thing would be to separate the three, calculate their value at the end of the third year for separated, and then obtain the grand total by adding up the results.

  • First deposit = 1,200. It is invested for three years. The value at the end of year 3 is 1,200*(1.12)^3 = 1,685.91
  • Second deposit = 2,200. It is invested for two years. The value at the end of year 3 is 2,200*(1.12)^2 = 2,759.68
  • Third deposit = 3,300. It is invested for one years. The value at the end of year 3 is 3,300*(1.12) = 3,696.00
  • The sum of the three deposits is 8,141.59.
6 0
3 years ago
Vernon is a cash basis taxpayer with a calendar tax year. on october 1, 2016, vernon entered into a lease to rent a building for
tester [92]

Answer:

$9,000

Explanation:

Vernon can only deduct the actual lease expenses incurred during 2016, and that is only three months: October, November and December.

= 3 months x $3,000 per month = $9,000

This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.

8 0
3 years ago
Jack is a crook with an honest face. People easily trust him. Jack works a scam in which he convinces the elderly to invest thei
bearhunter [10]

Answer:

False Pretenses

Explanation:

From the question given, jack is involved in the crime called false pretenses. He receives money by which he mentions things that are not true.

He brings out a false annual reports of profitable returns for a a non existing company or organisation. This representation is false with actual facts.

4 0
3 years ago
Other questions:
  • Yields on short-term bonds tend to be more volatile than yields on long-term bonds. Suppose that you have estimated that the yie
    12·1 answer
  • What is the present value of a perpetual stream of cash flows that pays ​$8 comma 0008,000 at the end of year one and the annual
    10·1 answer
  • A chess club with 40 members is electing a new president. eric received 22 votes. what percentage of the club members voted for
    6·1 answer
  • Cash Now Industries just hired 500 new workers to build ATMs and self-service check-out systems at its manufacturing plant in Te
    8·1 answer
  • A common error the auditor may find during the audit of property, plant, and equipment is that the client neglected to make a jo
    8·1 answer
  • To help you reach a $5,000 goal in five years from now, your father offers to give you $500 now. You plan to get a part-time job
    10·1 answer
  • Market opportunity analysis is most closely tied with _____.
    13·1 answer
  • Stillwater designs rebuilds defective units of its S12L7 kicker speaker model. During the year, stillwater rebuilt 7,500 units.
    11·1 answer
  • Violet Sales Corp, reports the year-end information from 2020 as follows: Sales (35,000 units) $280,000 Cost of goods sold (105,
    9·1 answer
  • On January 1, 2021, Morris Enterprises issued 9%, 5-year bonds with a face amount of $900,000 at par. Interest is payable annual
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!