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igor_vitrenko [27]
3 years ago
10

A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to

maturity
a. 9.32%
b. 8.33%
c. 7.92%
d. 9.45%
e. 8.61%
Business
1 answer:
photoshop1234 [79]3 years ago
6 0

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

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Answer:

Therefore, competitive strategy is essential for the survival of the product in the market. Having a new competitive strategy to beat rival companies or their products by renaming or redesigning their products will help the company to be more profitable and create an image new on the market.

3 0
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The lowest point on a purely competitive firm's short-run supply curve corresponds to __________. a. the minimum point on its AT
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Answer: Option 'b' is correct.

Explanation:

The lowest point on a purely competitive firm's short run supply curve corresponds to the minimum point on its MC curve.

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3 years ago
Which of the following is an example of human capital?
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Answer:

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8 0
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Grizzly Company had Retained Earnings at December 31, 2018 of $210,000. During 2019, the company had revenues of $410,000 and ba
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