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Inessa05 [86]
3 years ago
10

During recessionary periods, bonds that were issued many years ago have a higher coupon rate than currently issued bonds. Theref

ore, they may sell at a premium, a price higher than their face value, because of currently low coupon rates. A $50,000 bond that was issued 15 years ago is for sale for $60,000. What rate of return per year will a purchaser make if the bond coupon rate is 19% per year payable semi-annually, and the bond is due 5 years from now?
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

YTM = 6.818%

Explanation:

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

C= cash payment of the bond: 50,000 x 19%/2 = 4,750

F= Face Value= 50000

P= purchase value=60000

n= number of payment= 5 years at 2 payment a year = 10

YTM = \frac{4750 + \frac{50,000-60,000}{10 }}{\frac{50,000+60,000}{2}}

Important: it is better to calculate the YTM using a financial calculator, this is an approximation

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Delvig [45]

The valuation of the fringe benefit will be 3600.

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The valuation of the fringe benefit will be calculated thus:

= (2 × miles in each direction) × number of weeks × benefit rate

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6 0
2 years ago
Based upon Booked Orders and Sales Predictions, the expected finished goods requirements is 550 units over the planning period.
BARSIC [14]

Answer: 0 units

Explanation:

Future Planned Production Orders = Expected goods requirement - Finished goods in inventory - Schedule production

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5 0
3 years ago
All of the following would be found in a bond resolution for a new municipal issue except A) the issuer's obligations to bondhol
lys-0071 [83]

Answer:

C) the costs to be incurred by the issuer in connection with the offering.

Explanation:

The bond resolution (or the bond contract) spells out the characteristics of the issue (maturities, call features, etc.), the issuer's responsibilities to bondholders, and any restrictive covenants to which the issuer must adhere. Costs to be incurred by the issuer have no impact on bondholders.

hope this helps have a nice day :)

6 0
3 years ago
Ch.11 what are the four characteristics used to classify​ retailers?
Studentka2010 [4]
<span>There are four characteristics used to classify each retailer. These are used to satisfy each and every customer's needs. The first one is the type of merchandise they sell. Second is the level and type of customer service given. This is the type of merchandise sold at the retail store. The last characteristic is the price of the merchandise being sold at the retailer.</span>
7 0
3 years ago
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Isabel invested in four-stock portfolio; she invested 20 percent of her money in Stock A, 30 percent of her money in Stock B, 25
expeople1 [14]

Answer: 1.50

Explanation:

Isabel's portfolio beta is a weighted average of the individual stock betas.

= Weight of stock A * Stock A beta +  Weight of stock B * Stock B beta +  Weight of stock n * Stock n beta

= (20% * 0.4) + (30% * 1.2) + ( 25% * 2.5) + (25% * 1.75)

= 0.08 + 0.36 + 0.625 + 0.4375

= 1.5025

= 1.50

5 0
3 years ago
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