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Aloiza [94]
3 years ago
6

Suppose that Ford issues a coupon bonds at a price of $1,000, which is the same as the bond's par value. Assume the bond has a c

oupon rate of 4.5%, pays the coupon once per year, and has a maturity of 20 years. If an investor purchased this bond at the price of $1,000, for each year except the last year, the investor would receive a payment of 45. (Round your answers to the nearest dollar) When the bond matures, t investor would receive a final payment of $1045. (Round your answers to the nearest dollar.) Now suppose the price of the bond changes to $1, 060. Assuming an investor purchased the bond at a price of $1, 060, the investor would receive a current yield equal to ()
Business
1 answer:
uysha [10]3 years ago
3 0

Answer:

YTM approximated 4.08%

Explanation:

If the price of the bond changes to 1,060

we will need to calcualte the YTM

we could do it with an approxmation method like this:

YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}

Cuopon payment =1,000 x 4.5% = 45

Face value       = 1,000

Purchase value= 1,060

n= 20 years

quotient 4.0776699%

It will yield approximately 4.08%

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8 0
3 years ago
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Answer:

Dividends for the year $63,000

Explanation:

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7 0
3 years ago
2. Explain the strengths of a sole proprietorship and wn
adoni [48]

Explanation:

strengths:

1. He or she enjoys all the profit

2. easy to start up

3. decision making is quick

4.he or she can vary the hours of work

weakness:

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2. lack of specialised staff

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4.there is unlimited liability

who might start a sole proprietor business

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6 0
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Why is it difficult to compare relative job growth for different-sized businesses? staff size of small businesses tends to chang
Talja [164]

It is difficult to compare relative job growth for different-sized businesses because it is hard to determine the cutoff point at which a small business becomes a large business. It is not easy to know the comparative job development amongst businesses of different sizes. There are not the same parameters leading the size of a small business versus a big business. Moreover, there is no defined point where such a variation can be clearly identified.

5 0
3 years ago
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irinina [24]

Answer:

c. $84,500 provided

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6 0
3 years ago
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