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charle [14.2K]
3 years ago
14

Pelzer Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issue

d 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains yield last year was -4.93%. What is the yield to maturity
Business
1 answer:
miv72 [106K]3 years ago
8 0

Answer:

The answer is 9.85%

Explanation:

The number of periods N = 9years(10 years minus 1 year ago)

Yield to Maturity (I/Y) = ?

Present value of the bond (PV) = $950.70

Future value of the bond(FV) = $1,000

Annual payment (PMT) = $90 (9% x $1,000)

Using a financial calculator to solve the problem ( BA II plus Texas instruments):

Yield to Maturity (I/Y) = 9.85%

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6 0
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Answer:

If a company increases its final goods inventory level, that will increase the country's GDP even if the goods are not sold during the current period (they will be sold in future periods). Increases in inventory level are considered part of Investment component of the GDP.

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4 0
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Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2
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Journal Entry

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