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
Semmy [17]
2 years ago
7

You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and a 7% annual coupon. The bond has a c

urrent yield of 5.74%. What is the bond's yield to maturity
Business
1 answer:
Andreas93 [3]2 years ago
4 0

Answer:

The coupon value is 1000 × 7%  = $70

Face Value is $1000

Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54

Maturity period: 12 years

YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent

Explanation:

The coupon value is 1000 × 7%  = $70

Face Value is $1000

Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54

Maturity period: 12 years

YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent

You might be interested in
What explanations have economists offered for why firms​ don't raise prices when doing so would seem to increase​ profits? Firms
motikmotik

Answer: To keep the customer base

Explanation: The consumers find it unfair when the firms increase their prices continuously even though there was an increase in demand from the last increase in price.

Although, Customers do not mind when the prices are increased due to an increase in cost to the supplier. Therefore,unnecessary increase in price might result in loss of popularity of the product and further the loss of customer base.

That's the reason why firms do not increase their prices even though it will increase their profits.

8 0
3 years ago
Which of the following are the three major categories of resources?
geniusboy [140]

Answer:

E. Natural resources, Physical capital and Human capital

Explanation:

The above are the three major categories of resources because natural resources such as air, water etc are given by nature thus essential and constitute an important part of resources. Also, physical capital such as buildings, assets, motor vehicles etc are owned by a business or an organization to carryout daily business activities hence one of the major categories of resources.

Human capital is responsible for employing people to manage and control the natural resources and physical capital.

4 0
3 years ago
You've been introduced to Amy at a local Business and Professional Women's meeting. After you've chatted with her for a few minu
Anna11 [10]
A. Ask questions about her buisnews and tepl her what you need.
6 0
3 years ago
Steve and his brother used to work at the same organization. A few months ago their employer terminated them because the busines
kondor19780726 [428]

Answer:recession

Explanation:A recession occurs when there are two or more consecutive quarters of negative economic growth, as measured by gross domestic product (GDP) or other indicators of macroeconomic performance including unemployment

5 0
3 years ago
Read 2 more answers
The practice that involves short-term trading of mutual funds seeking to take advantage of short-term discrepancies between the
Diano4ka-milaya [45]

Answer:

A. Market Timing

Explanation:

Based on the information provided within the question it can be said that the term being described within the question is called Market Timing. Like mentioned in the question this term refers to a strategy of buying and selling different financial assets, usually by trying to take advantage of price discrepancies in the short term.

8 0
3 years ago
Other questions:
  • Auditors must gather evidence, and obtain documentation around identified risks. A risk in the purchasing process is that a purc
    12·1 answer
  • A company had beginning inventory of 8 units at a cost of $11 each on March 1. On March 2, it purchased 11 units at $10 each. On
    14·1 answer
  • Which of the following represents frictional unemployment? i) The demand for refrigerators falls when the economy enters a reces
    12·1 answer
  • A customer has purchased 5,000 shares of ABC Corporation stock in lots of 100 shares over an extended period of time at varying
    8·1 answer
  • Question 5 of 10
    13·2 answers
  • _____ are the taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them rather than que
    8·1 answer
  • Which of the following statements is normative rather than positive?
    7·1 answer
  • Hello everyone!, wyd
    15·2 answers
  • Help Please NO FAKE ANSWERS PLEASE I REALLY NEED HELP (economics)
    10·1 answer
  • An increase in u. S. Interest rates relative to german interest rates would likely ____ the u. S. Demand for euros and ____ the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!