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]
3 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]3 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
Your cover letter should be no more than 1 page each
Andrei [34K]

Answer:

I didn't understand your question.

3 0
3 years ago
According to Jack Gibb’s work on supportive and defensive communication, a supervisor who ____________ is promoting a disconfirm
frutty [35]
According to Jack Gibb’s work on supportive and defensive communication, a supervisor who doesn't show any concern for the feelings of others is promoting a disconfirming climate.
3 0
4 years ago
Consider the following uneven cash flow stream: Year Cash Flow 0 $0 1 $250 2 $400 3 $500 4 $600 5 $600 What is the present (Year
viva [34]

Answer:

The correct answer is: $1715,87

Explanation:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

             n

<h3>NPV= ∑ [Rt/(1+i)^t] - I0</h3>

            t-1

where:

R t​     =Net cash inflow-outflows during a single period t

i=Discount rate of return that could be earned in alternative investments

t=Number of timer periods

<u>In this exercise:</u>

NPV= 0+ 250/1,10^1 + 400/1,10^2 + 500/1,10^3 + 600/1,10^4 + 600/1,10^5

<u>NPV= $1715,87</u>

7 0
3 years ago
Oriole Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 56,000 with terms 2/10 n/30.
Leokris [45]

Answer:

July 1, 2020

Dr. Account Receivable $56,000

Cr. Sales                          $56,000

July 9, 2020

Dr. Cash                          $54,880

Dr. Sales Discount          $1,120

Cr. Account Receivable $56,000

Explanation:

Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

As Payment of $56,000 is received within the discount period. So, the discount will be

Discount = $56,000  x 2% = $1,120

Amount Paid = $56,000 - $1,120 = $54,880

8 0
3 years ago
Shelby traveled to Mexico to a resort and took $100 in U.S. currency. When she exchanged it for pesos, she received A) 10.3 peso
Westkost [7]

Answer:

es el literal D

Explanation:

por que cada 9 pesos equivale a un dolar

8 0
3 years ago
Other questions:
  • Constraints refer to:
    14·1 answer
  • An advertiser enables target cost-per-acquisition (cpa) bidding and notices that conversions decrease. what might cause this?
    5·2 answers
  • Over time the average rate of return on stocks is
    14·2 answers
  • Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On
    11·1 answer
  • An investor company owns 40% of the outstanding common stock of an investee company, which allows the investor to exercise signi
    15·1 answer
  • In the long-run, a firm in monopolistic competition is like: a monopolist in that it earns a positive profit. no other firm in a
    7·1 answer
  • The​ Ritz-Carlton has carefully created a strong and distinctive differentiation​ strategy, which is supported by everything the
    5·1 answer
  • Coronado Inc. has $520,640 to invest. The company is trying to decide between two alternative uses of the funds. One alternative
    9·1 answer
  • One definition of ____ is borrowing money to make a large purchase with the
    12·2 answers
  • suppose that the economy enters a boom and becomes overheated. if the fed pursues countercyclical monetary policy but overreacts
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!