1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
On march 1, year 1, roland doe bought 200 shares of gummit stock at $40 per share. on april 1, year 2, roland sold short (sold w
laiz [17]

Answer:

1,000 long term capital gain

Explanation:

8 0
4 years ago
What two measures are used to describe the problems of growth and economic instability
VLD [36.1K]
The two measures of instability in economic growth are high unemployment rates and inflation
6 0
3 years ago
_____________________ argues that the productivity of workers will increase if they are paid more, and so employers will often f
den301095 [7]

Answer:

Efficiency wage theory. Option A

Explanation: Efficiency wage theory is the idea that an increase in wages will lead to more productivity among workers because they will feel more motivated to work.

This is important for the employers also, because it will lead to higher productivity if they paid their employees more than what the market conditions dictate.

For example in a competitive labour market, employer A will enjoy more productivity and employee loyalty than employer B if employer A paid $10/hr and employer B paid $5/hr, in the same industry.

4 0
3 years ago
Do you attend church at christmas? well in one of these countries it was technically a legal requirement to do so until 1969. do
yarga [219]
Christmas day was viewed differently by various country around the world. For example in the united kingdom a law often quoted regarding Christmas is holy days and fasting days acts of 1551 which stated that everyone must attend church on Christmas day without using any means of transport and therefore people would walk to church. However the law was repealed in 1969. Hence, the correct answer is Great Britain.
8 0
3 years ago
Read 2 more answers
Fraudulent charities frequently collect donations in the following ways:
Kisachek [45]

Answer:

email, phone, door-to-door

Explanation:

Commercials and fundraiser events are too public for frauds

8 0
3 years ago
Other questions:
  • The primary purpose of a career assessment test is to
    12·1 answer
  • A leftward shift of the market demand curve for hdtvs, ceteris paribus, causes equilibrium price to
    7·1 answer
  • Choose the career option that requires the most education.
    7·2 answers
  • Mr. Zee worked 48 hours during the week ended January 18, 2019. He is paid $12 per hour and is paid time and a half for all hour
    15·1 answer
  • Actual total factory overhead incurred $ 28,875 Standard factory overhead: Variable overhead $ 2.10 per unit produced Fixed over
    11·1 answer
  • A theme park that wants to alert customers that the weather has cleared after a rainy morning and that customers can now buy two
    7·1 answer
  • In one of the case studies in the textbook, Marcus Lane, a geologist for an environmental management and engineering services fi
    6·1 answer
  • Other things the same, which bond would you expect to pay the highest interest rate? a. a bond issued by the U.S. government b.
    5·1 answer
  • The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a
    15·1 answer
  • Attitude is your belief in your own effectiveness.<br> Т<br> F
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!