The main difference is a preferred stock gives no voting rights to shareholders and a common stock does.
Preferred shareholders have priority over a company’s income.
In most cases there is no difference in the prize of an object depending on whether a credit card or a debit card is used.
So the main difference is that using a credit card, people can buy more than they can actually afford, so they can have debts as a consequence.
So people advice using debit cards as a way of avoiding debts.
Answer:
The answer is 5.96%
Explanation:
This is a semiannual paying coupon, meaning it makes payment twice a year.
N(Number of periods) = 40 years ( 20years x 2)
I/Y(Yield to maturity) = ?
PV(present value or market price) = $958.56
PMT( coupon payment) = $28 ( [5.6percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 40; PV = -958.56 ; PMT = 28; FV= $1,000; CPT I/Y
I/Y = 2.98%. Please note that this is for semiannual.
Therefore, annual YTM = 5.96%(2.98% x 2).
Answer:= $471,325
Explanation:
Price of a bond = Present value of coupon payments + Present value of face value at maturity
Coupon payments = 500,000 * 11% * 1/2 years = $27,500
Periodic yield = 12%/ 2 = 6% per semi annual period
Periods = 10 * 2 = 20 semi annual periods
Coupon payment is constant so it is an annuity.
Price of bond = Present value of annuity + Present value of face value at maturity
= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods
= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰
= $471,325
Answer:
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