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OLga [1]
3 years ago
11

Watters Umbrella Corp. issued 15-year binds two years ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. I

f these bonds currently sell for 98 percent of par value, what is the YTM?
Business
1 answer:
Sholpan [36]3 years ago
5 0

Answer:

YTM = 6.42%

Explanation:

current market value = $1,000 x 98% = $980

n = (15 - 2) x 2 = 26

coupon = $1,000 x 6.2% x 1/2 = $31

face value = $1,000

YTM = [coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = [31 + [(1,000 - 980)/26]} / [(1,000 + 980)/2]

YTM = (31 + 0.77) / 990 = 31.77 / 990 = 0.03209 x 2 (annual yield) = 0.641818 = 6.42%

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Elastic demand means that consumers are sensitive to price and that increased prices can lead to lower sales. There isn't enough information to fully answer this question. We don't know how elastic the demand is. If the demand is only slightly elastic, the increased price and lower demand could still equal higher profits.

5 0
3 years ago
Consider the following data to answer the following questions: Country GDP Population A $32,000 1,500 B $20,000 1,000 C $10,000
polet [3.4K]

Answer: 4 times

Explanation:

GDP per capita is a way of measuring the wealth Distribution in a country. It is calculated by dividing the Gross Domestic Product by the population of the country. The aim usually is to see if the Country's economy is big enough considering the amount of people it has.

Country C has a GDP per capita of,

= 10,000/500

= $20

Country D has a GDP per capita of,

= 10,000/2,000

= $5

= 20/5

= 4

Country C has a GDP per capita that is 4 times that of C.

4 0
3 years ago
You own an e-commerce site that sells skis and related winter sports gear. You gather your team of six employees and ask them to
serious [3.7K]

The great ideas for improving engagement on the website can be tried, EXCEPT Sponsoring a giveaway for a free pair of skis.

Instead of sponsoring a giveaway for a free pair of skis, your e-commerce site should employ integrated marketing.

<h3>What is integrated marketing?</h3>

Integrated marketing involves aligning all marketing tactics with a unified, customer-focused promotional messaging, enabling a consistent customer experience with your sports gear brand.

The advantages of integrated marketing include increasing:

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Thus, the great ideas for improving engagement on the website can be tried, EXCEPT Sponsoring a giveaway for a free pair of skis.

Learn more about integrated marketing at brainly.com/question/9696745

3 0
3 years ago
Cash receipts A firm has actual sales of $ 60 comma 000 in April and $ 64 comma 000 in May. It expects sales of $ 75 comma 000 i
nirvana33 [79]

Answer:

Month incurred   Amount     June     July      August

June                     75,000     37500   18,750  18,750

July                       95,000                   47,500  23,750

August                  95,000                                 47,500

                                              37,500   66,250  90,000

The expected cash receipts are:

June = $37,500

July = $66,250

August = $90,000

Explanation:

The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.

7 0
4 years ago
hich of these is the definition of client business risk? a. Risks affecting the business operations and potential outcomes of an
Leno4ka [110]

Answer:

Option A Risks affecting the business operations and potential outcomes of an organization's activities.

Explanation:

The reason is that the business risk are those risks that has potential to increase the cost of the company or decrease the revenue of the organization. So here the misstatement will not increase the cost of the organization and the only risk that increase the cost or decrease the revenues is the poor performance of the organization's activities and operations. So the right option which doesn't talks about misstatements is option A.

6 0
3 years ago
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