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Mnenie [13.5K]
3 years ago
5

A 4.30 percent coupon municipal bond has 15 years left to maturity and has a price quote of 97.85. The bond can be called in fou

r years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) Compute the bond’s current yield. (Do not round intermediate calculations. Round your answer to 2 decimal places.).
Business
1 answer:
yanalaym [24]3 years ago
6 0

Answer:

Bond's Current Yield  4.39%

Explanation:

The bond's current yield is calculated as below:

Bond's Current Yield = Annual Coupon Payment/Current Bond Price*100

Substituting values in the above formula, we get,

Bond's Current Yield = (100*4.30%)/97.85*100 = 4.39%

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Return on investment (ROI) information can help you manage a client's campaign by helping you determine how to:
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Answer:

The correct answer to the following question is option D) all of the listed answers are correct .

Explanation:

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4 years ago
If a consumer chooses not to perceive they are reaching ________.
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3 years ago
If the rate of inflation remains the same at 2% during the 5-year life of a TIPS bond with a coupon of 3%, what would the nomina
Vaselesa [24]

Answer:

C $1,104

Explanation:

TIPS are the form of bonds which are specially designed for the purpose to protect the investors against the inflation.

The principal value of the bond in case of TIPS is adjusted for yearly inflation.

Based on the above discussion the value of TIPS bond can be calculated using the below formula:

Value of bond at maturity=Principal amount (1+inflation rate)^5

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4 0
3 years ago
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $14,000 indica
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Answer:

Department Y $9000

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Delivery expense can be calculated using the allocation and apportionment method for Y and Z.

<u>Step 1. Allocation</u>

The costs that are directly attributable to the departments would be allocated to its relevant department. Here, $1500 are the direct expenses for the deliveries for the department Y, so at the first step,

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For the department Z, their are no direct expenses for the deliveries,so at the first step,

Department Z Cost = $0

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The indirect cost of $12500 ($14000 - $1500) would be apportioned among department Y and Z.

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Department Z = $12500 x 40% = $5000

3 0
3 years ago
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