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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:

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Explanation:

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Portfolio management in an organization is closely associated with each other as when the organization requires to do investment, it necessity be done through the  Strategic Planning process which is performed by the top-level management to minimize the risk.

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Answer:

Total Contribution margin:   107,500,000

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<u>revenue</u>

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