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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

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13.50%

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Check the attached file below for the solution in Excel Sheet.

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May, Inc. had the following transactions in 2019, its first year of operations: Issued 22,000 shares of common stock. The stock
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Answer:

The amount of paid-in capital        $

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6 0
3 years ago
Rimary marketing research is more expensive than secondary market research
Pani-rosa [81]
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4 0
3 years ago
Suzanne is excited about a black friday sale in which big-screen tvs are advertised for only $400. however, when she gets to the
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Bait and Switch

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8 0
3 years ago
n January​ 1, 2018, Waller Sales issued $ 20 comma 000 in bonds for $ 18 comma 300. These are eightminusyear bonds with a stated
spayn [35]

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$18,106.25

Explanation:

For computing the carrying value of the bonds , first we have to determine the discount amortization for 8 years which are shown below:

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