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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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Explanation:

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Journal entries

DATE                                     Particulars                                             Amount

May 7th                    Account receivable (+A) Dr.                                $4,000

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May 13th                 Cash (+A)  Dr.                                                         $4,000

                                                 to Accounts receivable(-A)                 $4,000

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Answer:

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Answer:

31-Dec-19

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Alberto determined one of the metrics he would use to gauge the level of exposure his marketing message had with his target market was the number of times the target was exposed to his message throughout the six weeks of the campaign, representing its "frequency" is represented by this.

<h3>What is the market frequency?</h3>
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