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
What is a file manager? Give an example the file manager is a user medium platform interface
alexandr1967 [171]

Answer:

The Android File Manager app helps users manage and transfer files between the smartphone's storage and a computer. ... The Android operating system allows you to remove apps quickly if you no longer use them or to make room for additional files without having to connect the phone to your computer.

Explanation:

5 0
3 years ago
Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?
DedPeter [7]

Answer:

The reason to prepare the consolidation worksheet is to maintain the record of what is finally entered in the books to record the transactions in between the holding and subsidiary.

This basically thus, requires the elimination of all the assets and liabilities of the subsidiary, and creation of such assets and liabilities into the balances of the holding(parent) company. In this manner the elimination is necessary to record.

So that there is no error in the form of multiple record of assets and liabilities, or in the form of no record of assets and liabilities of the subsidiary.

8 0
3 years ago
The town of Millbridge has just agreed to pay a pension for the town clerk. The pension will be $40,000 per year for the next 20
Mekhanik [1.2K]

The amount that must be put aside now is $458,796.85.

<h3>How much should be put aside now?</h3>

The first step is to determine the future value of the annuity:

Future value = yearly payment x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • r = interest rate = 6%
  • n = number of years = 20

$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65

Now, determine the present value of this amount:  $1,471,423.65 / (1.06^20) =$458,796.85

To learn more about present value, please check: brainly.com/question/26537392

4 0
1 year ago
Jeff got a part-time job delivering groceries for $15/hour and grossed $8,200
solniwko [45]

Answer:

Income = $8,200

Less:

Federal tax 10% = -$820

State tax at 5.5% = -$451

FICA at 7.65% = -$627.30

Total deduction = -$1,898.30

Net pay = $6,301.70

4 0
3 years ago
Can someone help . i know I'm dumb:) x-5=7​
love history [14]

Answer:

Hey Army

Nice to meet you:)

your answer is 12

as x-5=7

so x=7+5

x is 12

Stream life goes on and Dynamite. :)

4 0
3 years ago
Read 2 more answers
Other questions:
  • An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,4
    5·1 answer
  • illustrate the effects on the accounts and financial statements of recording the following transcations. If no account or activi
    9·1 answer
  • If managers at XYZ, Inc. are utilizing direct supervision and other administrative systems as control mechanisms, they are focus
    10·1 answer
  • What does it mean when a part of the population is​ under-represented?
    14·1 answer
  • Problems such as lack of trust or lack of sharing information among team members in a competitive group can be swiftly changed b
    12·1 answer
  • ​________ represents a debt owed for renting a building.A.Rent PayableB.Rent ExpenseC.Rent RevenueD.Prepaid Rent
    5·1 answer
  • On November 1, Eli Co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. Eli's journal entry
    11·1 answer
  • The market for. pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve. a. Draw the compet
    6·1 answer
  • Which of the following is a financial​ crisis? A. Rebellion in Mexico and the assassination of a presidential candidate shook​ i
    6·1 answer
  • Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Ea
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!