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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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Which statement is the best description of a price‑taker as it pertains to perfect competition?
Nesterboy [21]

Answer:

The correct answer is letter "A": Mary Beth grows cotton. She finds that she can always sell her entire crop at the market price. However, if she asks a price that is even slightly higher she cannot sell any of her cotton.

Explanation:

Perfect Competition is a market where competition is at the highest degree possible. Perfect competitive markets have the following characteristics:

  1. <em>All companies sell the same goods or services.  </em>
  2. <em>All companies are price takers.  </em>
  3. <em>All firms have relatively small market shares.  </em>
  4. <em>Buyers have full product and price information.  </em>
  5. <em>The industry is characterized by low or no barriers to entry and exit of the industry.</em>

<em />

Thus, <em>in Mary Beth's case, she cannot ask for a different price than the one of the market because in a perfectly competitive market it is controlled by supply and demand. Companies cannot set the price.</em>

8 0
3 years ago
4. What type of documents should you file from work?
abruzzese [7]

Answer:

benefits package information

8 0
3 years ago
How do flooding treatments differ from systematic desensitization?
Sunny_sXe [5.5K]

The difference between Flooding treatments and Systematic Desensitization is that, Flooding is a procedure of behavior therapy established on the ideologies of respondent conditioning, it is a known psychotherapeutic method to overcome different phobias, it is a faster method in overcoming fears, than Systematic Desensitization. Systematic Desensitization is the behavioral treatment, which combines imagining or experiencing one’s fear or feared object or situation together with relaxation exercises to overcome these so-called phobias or fears, but this method is a little slower than Flooding.

4 0
3 years ago
As Talia researches MNCs, she will find that they: Check all that apply. a. Transfer capital, technology, and people among their
natita [175]

Answer:

The answer is A and C

Explanation:

Transfer capital, technology, and people among their affiliates in various countries.

Ultimately integrate their diverse activities in a centralized headquarters function, which may be physically.

7 0
4 years ago
On January 1, 2016, Cobb Co. received, for the sale of a parcel of land, a ten-year note receivable having a face amount of $2,0
RoseWind [281]

Answer: $‭1,754,211

Explanation:

8% of $2,000,000 will be payable every year for 10 years;

= 2,000,000 * 8%

= $160,000

The amount received from selling the land is;

= Present value of interest payable annually + Present value of Note

= (160,000 * Present value interest factor of annuity, 10 years, 10%) + (2,000,000 * present value interest factor, 10 years, 10%)

= (160,000 * 6.14457) + (2,000,000 * 0.38554)

= $‭1,754,211

4 0
3 years ago
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