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
Dividing up the market by how much a consumer uses a product or service is called?
just olya [345]

Answer:

benefit segmentation (behavioral segmentation) dividing the market into segments according to the different benefits that consumers seek from the product.

Explanation:

6 0
2 years ago
Jose owns a dog whose barking annoys Jose's neighbor Amy. Suppose that the net benefit of owning the dog is worth $400 to Jose a
Alex Ar [27]

Answer: Jose has to pay $600.

Explanation:

Jose has to pay $600 to Jane for her inconvenience.

In Accordance with Coase theorem, when two conflicting parties exist, one has to ‘buy the right’ from the other party.

Which In this scenario or case, Jane has the ‘right to prevent Jose from having a dog’.

Thus, Jose has to pay compensation to Jane so that he can keep his dog and at the same time Jane is also compensated for the inconvenience which may arise later.

5 0
3 years ago
Read 2 more answers
Which of the following is not a goal of federal economic policy? full employment growth a high savings rate Keynesian economics
Ivan

Answer:

high savings rate

Explanation:

High savings rate is not a goal of federal economic policy. The goal of federal economic policy is to achieve full employment, economic growth and stable prices.

However 'high savings rate' is achieved when interest rates are increased in order to fight inflation and achieve 'stable prices' because people keep their money in the banks to take advantage of the benefit of earning interest BUT this is not always the case because 'higher interest rates' works against full employment by making it too costly for firms to borrow for investments which will definitely create jobs.

5 0
3 years ago
Which of the following statements are examples of labor except:
Dmitry [639]

Answer:

C) a group of church members gather clothes for a clothing drive for the poor in their community.

Explanation:

The stated example is and example of voluntary work, which by most statutes does not count as labor. Although volunteering is technically work, it does not count as labor as volunteers are not paid for what they do. Instead, they do it for an ethical purpose which is not related to getting money. Therefore, volunteers do not coun as the working labor force.

7 0
3 years ago
anufacturers consider selling and administrative costs to be A. prime costs. B. conversion costs. C. inventoriable costs. D. per
malfutka [58]

Answer:

D. period costs.

Explanation:

The period cost is the cost which is incurred during the passage of time. It includes the major part of the ling and administrative expenses of the income statement. This cost is not capitalized. It is to be allocated based on the expenses that are against the revenue.  

Example - Depreciation on delivery trucks, advertising expense, etc

8 0
3 years ago
Other questions:
  • Select the correct answer from each drop-down menu.
    6·2 answers
  • Which of these statements about a business plan is true?
    7·2 answers
  • Because scarcity exists, any strategy for allocating scarce resources must address A) for whom to produce, what to produce, and
    11·2 answers
  • Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder
    12·1 answer
  • In order to deal with the financial problems inherent to the current Social Security system, President Waldhart proposes that an
    13·1 answer
  • ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu
    13·1 answer
  • Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a
    6·1 answer
  • On June 1, Baby Raising Magazine collected cash of $63,000 on future annual subscriptions starting on July t 1. Journalize the t
    7·1 answer
  • You are planning to build a new home with approximately 2,000-2,500 gross square feet of living space on one floor. In addition,
    9·1 answer
  • Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offer
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!