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Butoxors [25]
2 years ago
7

XZYY, Inc. currently has an issue of bonds outstanding that will mature in 16 years. The bonds have a face value of $1,000 and a

stated annual coupon rate of 13.0% with annual coupon payments. The bond is currently selling for $1,176. The bonds may be called in 3 years for 113.0% of the par value. What is your expected quoted annual rate of return if you buy the bonds and hold them until maturity
Business
1 answer:
borishaifa [10]2 years ago
5 0

Answer: 10.66%

Explanation:

The expected quoted annual rate of return when the bonds are bought and being held until maturity will be calculated thus:

Coupon payment = 1000 × 13% = 130

The Yield to Maturity formula will be:

= Rate(maturity period, coupon payment, -price, fave value)

= Rate(16, 130, -1176, 1000)

Yield to Maturity = 10.66%

Therefore, the expected quoted annual rate of return is 10.66%.

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3 years ago
Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 th
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Answer:

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Explanation:

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Here,

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4 0
2 years ago
Which statement best describes a Schumer box?
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Answer:

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2 years ago
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