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Ilya [14]
3 years ago
15

A four-year bond has an 8 percent coupon rate and a face value of $1,000. If the current price of the bond is $878.31, calculate

the yield to maturity of the bond (assuming annual interest payments).
Business
1 answer:
Vikentia [17]3 years ago
6 0

Answer:

Bond yield to maturity = 12%

Explanation:

Given the face value = $1000

Interest or coupon rate = 8%

Interet per period = 1000 x 8%  =$80

Presnet value, bond price = 878.31

Maturity years = 4

Use below formula in excel to find the maturity yield.

Bond yield to maturity = RATE(NPER,PMT,PV,FV)

Thus, Bond yield to maturity = 12%

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Answer:

15. A - Net Loss

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Explanation:

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3 years ago
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Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the ag
disa [49]

Answer:

Environmental trend

Explanation:

<em>An environmental trend is the influence of the combination of internal and external factors (environment) over the business' operating system.</em> These factors can be clients, suppliers, competition, market, law, technology, etc. In the question given the factor that is influencing are the clients (seniors).

I hope you find this information useful and interesting! Good luck!

7 0
3 years ago
The primary purpose of the statement of cash flows is to:.
Komok [63]

Answer:

The primary purpose of the statement of cash flows is to provide information about cash receipts, cash payments, and the net change in cash resulting from the operating, investing, and financing activities of a company during the period.

6 0
2 years ago
When the world went to a system of floating exchange rates, the Balance of Payments became a relic of a system of fixed exchange
Hitman42 [59]

Answer:

False

Explanation:

The balance of payments includes all the economic transactions that a country has with the rest of the world, including the balance or trade (exports of goods - imports of goods), balance of services (exports of services - imports of services), capital account (net change in a nation's assets and liabilities), and total unilateral transfers (money sent out f the country vs money sent into the country).

The balance of payments is a very important economic indicator.

8 0
4 years ago
Edelman Engines has $18 billion in total assets — of which cash and equivalents total $120 million. Its balance sheet shows $2.7
Levart [38]

Answer:

Market/Book Ratio = 1.92 times

EV/EBITDA = 13.65 times

Explanation:

As for the information provided,

EBITDA = $1.794 billion

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Outstanding shares = 300 million

Share price per share = $46

Therefore, market value of common equity = $46 \times 300 million

= $13.8 billion

Therefore, market/book ratio = $13.8 billion/$7.2 billion

= 1.9167 times

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= $13.8 billion + $8.1 billion + $2.7 billion - 0.120 billion

= $24.48 billion

EV/EBITDA = $24.48 billion/$1.794 billion = 13.65 times

4 0
3 years ago
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