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Tcecarenko [31]
3 years ago
9

West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bond

s currently sell for 103 percent of par value, what is the YTM?
Business
1 answer:
MaRussiya [10]3 years ago
7 0

Answer:

7.44 %

Explanation:

The Yield to Maturity (YTM) is the Interest rate that makes the Present Value of Coupons and Principle equal the Market Price or Current Price of the Bond.

The Yield to Maturity can be calculated using a financial calculator as follows :

PV = - $100

N = (15 -2) × 2 = 26

PMT = ($100 ×  7.30%) ÷ 2 = $3.65

FV = $103

P/YR = 2

YTM = ?

Therefore, Inputting the values in the calculator as shown gives the Yield to Maturity is 7.44 %.

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A. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern
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Answer: See explanation

Explanation:

a. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern day example of this concept, and discuss some potential solutions.

This is referred to as the agency problem. This brings about conflict of goals between the manager and the shareholders. An example is when the managers use the resources of the company for their own personal benefits or in a scenario whereby the managers fake the earnings so that the stock prices will rise temporarily.

b. State and describe the concept that states, "factors of production are somewhat immobile." Give an example with detail.

This is referred to as imperfect market theory. When transferring labor, capital or other resources, there are costs attached to the transfer and restrictions as well. .

4 0
2 years ago
A refrigerator used by a wholesale warehouse has a cost of $64,000, an estimated residual value of $5,200, and an estimated usef
PilotLPTM [1.2K]

Answer:

(64,000- 5,200 = 58,800).

Explanation:

Subtract your originial cost from the residual value. (64,000- 5,200 = 58,800).

3 0
3 years ago
calculate the unadjusted rate of return for an investment that has a net cost of $430,000 and should provide an average after-ta
Elden [556K]

9%, as the unadjusted rate of return is equal to the average yearly net income growth rate divided by the initial investment's net cost.

<h3>Calculation:</h3>

$40,090 divided by $430,00 is.093 * 100, or 9%.

<h3>If the needed rate of return is 6%, what is the present value of a cash inflow of $2,000 five years from now? Examine later?</h3>

$2600 will be given to the recipient after five years.

<h3>If the internal rate of return is 5% and the desired rate of return is 6%, should management accept the investment opportunity?</h3>

No, as the internal rate of return on the investment is lower than the intended rate of return.

To know more about unadjusted rate visit:-

brainly.com/question/13037420

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3 0
1 year ago
What type of awareness is a company practicing if it requires that all lights be shut off after leaving a room?
lutik1710 [3]

i'm pretty sure this is global.

6 0
3 years ago
Read 2 more answers
The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is ca
sineoko [7]

Answer:

The answer is consumer's surplus

Explanation:

Consumer's surplus is the difference between what the consumer or buyer is willing to pay and the amount he or she eventually paid.

For example, Mr A is willing to pay $100 for a product and the producer is willing to sell for $90. After much negotiation between mr A and the seller, he eventually paid $85. What he paid was lower than what he was willing to pay before.

So the consumer surplus is $100 - $85 = $15

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3 years ago
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