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olchik [2.2K]
3 years ago
13

Fooling Company has a callable bond outstanding with a coupon of 10.4 percent, 25 years to maturity, call protection for the nex

t 10 years, and a call premium of $75. What is the yield to call (YTC) for this bond if the current price is 110 percent of par value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
erastovalidia [21]3 years ago
8 0

Answer:

The yield to call for this bond is 9.30%

Explanation:

Yield to call

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Now use the following formula to calculate the Yield to call

Yield to Call = [ C + ( F - P ) / n ] / [ ( F + P ) / 2 ]

Where

F = Face value = $1,000 ( Assumed )

C = Coupon Payment = Face value x Coupon rate = $1,000 x 10.4% = $104

P = Call price of the bond = Face value + Call Premium = $1,000 + $75 = $1,075

n = Numbers of years to call = 10 years

Placing vlaues in the formula

Yield to Call = [ $104 + ( $1,000 - $1,075 ) / 10 years ] / [ ( $1,000 + $1,075 ) / 2 ]

Yield to Call = 0.0930

Yield to Call = 9.30%

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Answer:

Vijay Bahuguna is the 6th cheif minister of Uttarkand.

Explanation:

Hope this helps.

8 0
2 years ago
Discretionary fiscal policy is defined as fiscal policy Group of answer choices initiated by a Presidential proclamation. left t
Galina-37 [17]

Discretionary fiscal policy is defined as fiscal policy triggered by the state of the economy.

<h3>What is discretionary fiscal policy?</h3>

This refers to the decision of the federal government to increase or decrease taxes. Here, the changes in taxes are subject to the president and congress approval.

Hence, discretionary fiscal policy is defined as fiscal policy triggered by the state of the economy.

Learn more about discretionary fiscal policy here: brainly.com/question/6483847

#SPJ1

4 0
2 years ago
Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. A
trapecia [35]

Answer:

L-Ten, Triol and Pioze

Revenue $1,000,000  ; $2,000,000 ; $700,000

Total Costs $750,000  ; $750,000  ; $510,000

Gross Profits $250,000  ; $1,250,000  $190,000  

Explanation:

Gross Margin percentage = Gross margin / Revenue

Gross Margin Percentage = Total Gross Margin of all products / Total revenue

Gross Margin Percentage = $1,690,000 / $3,700,000 = 0.45

Gross margin percentage is 45%

7 0
3 years ago
Miss Kitty's Chocolate Corral is located in an out-of-the-way small shopping center. However, the company enjoys outstanding bus
juin [17]

Answer:

D. Word of Mouth

Explanation:

Word of mouth also referred to as viva voce, is the passing of information from person to person using oral communication,

Word of Mouth can be as simple as telling someone the time of day.

An Example of Word of mouth is Storytelling; A common form of Word Of Mouth communication where one person tells others a story about something that really happened or a fictional event.

In marketing, Word of Mouth is An unpaid form of promotion or advertisement in which satisfied customers or users of a particular product or services tell other people how much they like a business, product or service.

Word of Mouth advertising is very important for every business, because each happy customer can steer dozens of new customers to come and patronise you.

From the question, Kitty's company are making good sells and have many customers despite their location because of the positive and delightful things their satisfied customers say about them to other people. Thus Miss Kitty is benefiting from A positive Word Of Mouth.

8 0
3 years ago
The following inventory valuation errors have been discovered for Knox Corporation:
Whitepunk [10]

Answer:

Income +/- inventory adjustment

2015:   138,000 - 23,000 = 115,000

2016:  254,000 + 61,000 = 315,000

2017:   168,000 + 17,000 = 185,000

Explanation:

<u>Inventory Identity:</u>

Beginning + Purchases = Ending + COGS

As the mistake is on the right side it compensates by the other component which is COGS

<u><em>When the inventory is overstated</em></u> this means COGS is understated.

We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.

<u><em>When the inventory is understated</em></u> this means COGS is overstated.

We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.

7 0
3 years ago
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