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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%

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You purchased a stock at a price of $46.55. The stock paid a dividend of $1.79 per share and the stock price at the end of the y
Mama L [17]

Answer:

3.84%

Explanation:

Calculation for dividend yield

Using this formula

Dividend Yield(%) = D / P0

Where,

D=$1.79

P0=$46.55

Let plug in the formula

Dividend Yield(%) =$1.79/$46.55

Dividend Yield(%) =0.0384*100

Dividend Yield(%) =3.84%

Therefore the dividend yield will be 3.84%

4 0
3 years ago
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave
anastassius [24]

Answer: Discharged

Explanation:

 Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.

The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.

According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.  

8 0
3 years ago
Assume the following data for Casper Company before its year-end adjustments:
Ratling [72]

Answer:

a. Journalize the adjusting entry for the estimated customer allowances.

  • Dr Sales returns and allowances 10,500
  •     Cr Customer refunds payable 10,500

The adjusting entry should = total sales x estimated percent of returns = $1,750,000 x 0.6% = $10,500

b. Journalize the adjusting entry for the estimated customer returns.

  • Dr Estimated returns inventory 8,000
  •     Cr Cost of merchandise sold 8,000

This amount is given in the question, $8,000, so you need to record it as a decrease in COGS and an increase in returns inventory.

5 0
3 years ago
Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow: 2019 2018 Sales $513,500 $480,0
madam [21]

Answer:

The answer is

For 2018 - 1.5

For 2019 - 1.3

Explanation:

Asset turnover ratio=Net sales/average total assets

For 2018:

Sales - $480,000

Beginning asset - 360,000

Ending asset -360,000

Average total asset:

($280,000 + $360,000)/2

=$320,000

Therefore, asset turnover for 2018 is:

$480,000/$320,000

=1.5

For 2019:

Sales - $513,500

Beginning asset - $360,000

Ending asset - $430,000

Average total asset:

($360,000 + $430,000)/2

=$395,000

Therefore, asset turnover for 2019 is:

$513,500/$395,000

=1.3

5 0
2 years ago
Ajax Company purchased a five-year certificate of deposit for its building fund in the amount of $220,000. How much should the c
irina [24]

Answer:

The certificate of deposit be worth $338496.8 at the end of five years if interest is compounded at an annual rate of 9%

Explanation:

Certificate of deposit of 220000 after 5 years @ 9% is calculated as below

As per the Present and future value tables of $1 at 9% presented

FVA of $ 1 after 5 years is 5.9847 and

PVA of $ 1 after 5 years is 3.88965  

PV of 220000 will become = 220000*5.9847/3.88965

                                              = $338496.8

Therefore, The certificate of deposit be worth $338496.8 at the end of five years if interest is compounded at an annual rate of 9%

8 0
3 years ago
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