1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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 %.

You might be interested in
What was one effect of the budget limitations that ronald reagan placed on selected agencies?
Rainbow [258]
They created efficiencies that streamlined government.

5 0
3 years ago
Read 2 more answers
A customer owns a convertible subordinated debenture, convertible into common at $25 per share. The bond is currently trading at
Dafna1 [17]

Answer:

c:40:1 OR B:32:1

Explanation:

3 0
3 years ago
If your marginal propensity to consume is 0. 4 and you get an additional $300 in income, you would spend ________ on consumption
Kobotan [32]

Answer:

$120

Explanation:

.4 x 300 = $120

the MPC (Marginal propensity to consume) is essentially the same as saying this is how much of your additional income to spend. In this case, you spend .4 of your additional income. Multiplying .4 by $300 in additional income results in $120

7 0
3 years ago
You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announc
Arturiano [62]

Answer:

This equals $12,256.70 (230 x $50.70 + 230 x $2.59)

Explanation:

The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.

This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.

6 0
3 years ago
Read 2 more answers
A new factory manager was hired for a company that was experiencing slow production rates and lower production volumes than dema
rodikova [14]

Answer:

C. unfavorable direct labor cost variance

Explanation:

The payment of cash bonuses would result in an unfavorable direct labor cost variance

. The Direct labor cost variance is unfavorable if the actual cost per hour is higher than the standard cost which in this question is as a result of bonuses charged to the direct labor budget. In other word, the factory paid more per hour of labor than what it has estimated

4 0
3 years ago
Other questions:
  • Colleen’s employer gives her options on 900 shares of company stock. The stock price on the day of the award was $54, and the cl
    15·1 answer
  • A company would like to produce 1000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the
    9·1 answer
  • A bond issue with a face amount of $1,200,000 bears interest at the rate of 9%. The current market rate of interest is 10%. Thes
    5·1 answer
  • ____________ are the guiding principles and/or behaviors that embody your organization and how its people are expected to behave
    12·1 answer
  • Employers are not bound by the flsa regarding employees classified as ________ employees.
    15·1 answer
  • What part of the unit correlates to this Ted Talk and shares the same concepts that are covered? Discuss the similarities betwee
    9·1 answer
  • A South American country exports coffee and estimates the demand function to be D(p) = 75 − 3p2. If the country wants to raise r
    9·2 answers
  • A letter of application should be written on:
    13·1 answer
  • Serotta Corporation is planning to issue bonds with a face value of $450,000 and a coupon rate of 16 percent. The bonds mature i
    9·1 answer
  • What happens to total revenue (TR) if the price decreases on a product with demand that is price elastic
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!