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
sp2606 [1]
3 years ago
12

Coupon payments are fixed, but the percentage return that investors receive varies based on market conditions. This percentage r

eturn is referred to as the bond's yield. Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate of return under certain assumptions. Which of the following is one of these assumptions? The bond will not be called. The bond has an early redemption feature. Consider the case of Eades Corp. Eades Corp. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1, 000, and their current market price is $1, 130.35. However, Eades Corp. may call the bonds in eight years at a call price of $1, 060. What are the YTM and yield to call (YTC) on Eades Corp.'s bonds? Value YTM YTC If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Eades Corp.'s bonds? 8 years 10 years 13 years 18 years If Eades Corp. issued new bonds today, what coupon rate must the bonds have to be issued at par?
Business
1 answer:
FinnZ [79.3K]3 years ago
3 0

Answer:

“The bond will not be called”

Explanation:

YTM  7.36% = RATE (18,9O,-1160.35,1000)

YTC     6.91% =RATE(8,90,-1160. 35,1060)

18 years, is remaining life of the bond. Bond will not be called.  

New bond’s coupon rate 7.36%

You might be interested in
ou are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in increment
Papessa [141]

Answer:

$3,190

Explanation:

Incremental net income before tax = Incremental gross profit - Incremental SG&A expenses

= $5,000 - $400

= $4,600

Incremental net income after taxes = Incremental net income before tax * (1 - Tax rate)

Incremental net income after taxes = $4,600 * (1 - 0.35)

Incremental net income before tax = $4,600 * 0.65

Incremental net income before tax = $2990

Incremental cash flow = Incremental income after taxes + Depreciation

Incremental cash flow = $2,990 + $200

Incremental cash flow = $3,190

3 0
3 years ago
The decision-making process has five steps. After collecting relevant information and evaluating each alternative, the next step
Otrada [13]

Answer:

Select the course of action

Explanation:

Because it’s the next step after collecting relevant information and evaluating each alternatives

7 0
2 years ago
The taxpayer’s marginal tax bracket is 25%. Which would the taxpayer prefer? a. $1.00 taxable income rather than $1.25 tax-exemp
Zepler [3.9K]

Answer:

option (d) $1.40 taxable income rather than $1.00 tax-exempt income

Explanation:

The taxpayer would prefer option (d) $1.40 taxable income rather than $1.00 tax-exempt income

The above statement will be chosen because in this case the after tax income will be greater than the tax exempt according to the condition given in the question

Given:

Marginal Tax bracket = 25%

thus,

Taxable income = $1.40

Tax = $1.40 × 0.25 = $0.35

Therefore,

The net income = Taxable income  - Tax = $1.40 - $0.35 = $1.05

and,

$1.05 > $1.00

4 0
3 years ago
The following information is available for MVF Company(dollar amounts are in millions)
Klio2033 [76]

Answer:

                                           2016            2015          2014           2013

gross profit%                     26.29%        22.58%      22.45%     22.41%

Inventory turnover          6.58               7.64            7.6             7.94

cost of material %          59.89%       51.76%         89.82%       51.10

b. gross%  has increased this may be due to a high demand, and intense marketing.

inventory turnover has decreased this may be due to new competition, or introduced product(new product)

cost of material purchased % it has increased in 2016, this may be due to increased production and effective use of material.

Explanation:

gross profit % =gross profit/ sales

gross profit = sales less cost of sales

inventory turnover = cost of sales / average inventory

average inventory = (opening inventory + closing inventory )/2

cost of material purchased/ cost of finished goods

finished goods = cost of sales + closing - opening goods

4 0
3 years ago
_______ capital is the economic or productive potential of strong, trusting, and cooperative relationships. This type of capital
Reil [10]

Answer:

Social capital

Explanation:

Social capital is defined as the effective or efficient functioning of the social groups through using the relationship of interpersonal, shared understanding, reciprocity, shared norms, cooperation, shared values and shared norms.

So, the social capital is the productive potential of cooperative relationships, strong and trusts. And this kind of capital help the person land the job. Within the survey it is stated that the 74% had found quality applicants by referrals of employees.

7 0
3 years ago
Other questions:
  • Candice tells Yuri that she wants to hear his ideas about the Q4 Finance Report, and Yuri says that they should compare it to la
    13·1 answer
  • Every Monday during the month of December, salespeople who had the highest sales the previous week participated in a package sur
    11·1 answer
  • An effect of transportation improvements on settlements was that
    7·2 answers
  • Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.60 dividend every year, in perpetuity. If thi
    13·1 answer
  • On june 1, 2017, james places in service a new automobile that cost $40,000. the car is used 60% for business and 40% for person
    9·2 answers
  • Suppose an inventor is interested in the proportion of local consumers who would be interested in purchasing her new product. If
    15·1 answer
  • Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 13.00% for 2 years, af
    7·1 answer
  • You have a budget of $1,440 per week for employees. Employees are paid $12 per hour and work 40 hours per week. Ignoring overhea
    15·2 answers
  • Which of the following is an insurance company?
    10·2 answers
  • What enables a oligopoly to form within a market
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!