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kykrilka [37]
3 years ago
12

ABC Company bonds are trading on the open market. These bonds mature in 10 years. The coupon rate on the ABC bonds are at 8.50%.

The current price of the bonds is $1,062.50. What is the current yield to maturity of these bond
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

7.59%

Explanation:

Using a financial calculator, input the following to calculate Yield to Maturity (YTM). I'm using Texas Instruments BA II Plus model.

Face value of the bond ; FV = 1000

Annual coupon payment; PMT = Coupon rate * Face value ;

PMT= 8.5%*1000 = 85

Present value of bond or price; PV = -1062.50

Time to maturity in years ; N = 10

then compute annual interest rate ; CPT I/Y = 7.59%

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D) the availability of land, labor and capital


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3 years ago
Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and ou
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Answer:

Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.

Explanation:

The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.

Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.

Option C and D are also incorrect because domestic firms don't face any economic exposure.

8 0
3 years ago
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Right click the last data point and select "Set as Total"

<h3>What is accumulated total?</h3>

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Right click the last data point and select "Set as Total".

To learn more about accumulated total refer to:

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5 0
2 years ago
Bank ABC has checkable deposits of $415 million and total reserves of $50 million. The required reserve ratio is 9 percent. The
umka21 [38]

Answer:

$12,650,000.

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Reserves = Deposits - outstanding loans

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