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Kobotan [32]
3 years ago
13

ABC Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year matu

rity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)
Business
1 answer:
Dahasolnce [82]3 years ago
8 0

Answer:

Yield to call is 9.8%

Explanation:

The rate of return bonholders receives on a callable bond until the call date is called Yield to call.

Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

C = Coupon Payment = $105 per year

F = Face value = $1,000

P = Call price = $1,100

n -= number of years to call = 5

Yield to Call = [ $105 + ( $1,000 - $1,100 ) / 5 ] / [ ( $1,000 + $1,100 ) / 2 ]

Yield to Call = [ $105 - 2 ] / $1,050 = $103 / $1,050 = 0.098 = 9.8%

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the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. this
kozerog [31]

Answer:

Bond indenture

hope it's correct

3 0
2 years ago
How were stocks and bonds created
devlian [24]

Answer:

The difference between stocks and bonds is that stocks are shares in the ownership of a business, while bonds are a form of debt that the issuing entity promises to repay at some point in the future. A balance between the two types of funding must be achieved to ensure a proper capital structure for a business

Explanation:

7 0
3 years ago
The activity known as ________________ encompasses all the tools, techniques, and resources that are needed to collect, interpre
Jlenok [28]

Answer:

Marketing research

Explanation:

Marketing research -

It refers to the method of collecting and interpreting all the information and sources in order to establish any business , is referred to as marketing research .

The research work require a lot of relevant information about the goods , planning and implementing the plans in a correct manner ,

The feedback of the consumers are required in order to improve the business according to the likes and dislikes of the consumers .

Hence , from the given information of the question ,

The correct term is marketing research .

6 0
3 years ago
The Johnson Farm has 500 acres of land allotted for cultivating corn and wheat. The cost of cultivating corn and wheat (includin
gayaneshka [121]

Answer:

The answer is: Jacob Johnson should cultivate 400 acres of corn and 100 acres of wheat.

Explanation:

                  x = corn acre   ;     y = wheat acre

<u>Step 1:</u>

x   +   y    =   500

42x + 30y = 19,800

<u>Step 2:</u>

Multiply (x + y = 500) times -30 ;      -30x - 30y = -15,000

<u>Step 3:</u>

42x + 30y = 19,800

-30x - 30y = -15,000

<u>Step 4:</u>

(42x - 30x) + (30y - 30y) = 19,800 - 15,000   ;     12x = 4,800

<u>Step 5:</u>

x = 4,800/12   ;    x = 400

<u>Step 6:</u>

400 + y = 500     ;      y = 100        

8 0
3 years ago
Able sells and delivers a piece of equipment to Smythe for​ $2,000 on August 1 and the equipment cost​ $1,300. The sale is a cre
guapka [62]

Answer:

Debit entry - Accounts Receivables - $2,000

Credit entry - Sales - $2000

Explanation:

Due to the fact that it is a credit sale, it means that the cash would be obtained at a future date in time. Hence, until then, Mr Smythe is indebted to Able as he is a debtor. Once he pays what he owes to Able and the cash has been received, Accounts receivables would be credited with $2000 and cash would be debited with $2000.

7 0
3 years ago
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