Margarite Escobar works as an attorney for a large West Coast consulting firm. Margarite's job is to act as an advisor to the fi
1 answer:
You might be interested in
Answer: 59 days
Explanation: As we know that,
And,
where,
= $550,000
so,
=6.19
Now, putting the values into first formula we have :-
= 59 days
Answer:
yield to maturity YTM = 35%
Explanation:
given data
purchase price = $8,000
face value = $10,000
current yield = 10%
solution
we get here yield to maturity YTM
so first we get Annual Coupon by current yield that is express as
Current yield = annual coupon ÷ current price ..............1
put here value we get
Annual Coupon = 10 % × 8,000
Annual Coupon = $800
now we get YTM by purchase price that is
purchase price = Annual Coupon ÷ ( 1+YTM ) + face value ÷ ( 1+YTM ) .......2
put here value we get
8,000 =
solve it we get
yield to maturity YTM = 35%