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Butoxors [25]
3 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]3 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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In the context of stragetic planning the streagtic goals of an orgainzation represent concrete benchmarks that managers can use
Marta_Voda [28]

Answer:

a. True

Explanation:

For accomplishing the company objective, the planning plays a major role without planning the goals of the company could not able to achieve.

Also to measure the performance for each key, the benchmarks is also plays a vital role as it defines the difference between the standard performance and the actual performance

Hence, the given statement is true

7 0
3 years ago
If Management was not concerned with the time value of money, from which two capital budgeting methods should they choose?
Neporo4naja [7]

Answer:

ARR or Payback

Explanation:

Here are the options to this question

Multiple Choice

BET or IRR

ARR or Payback

NPV or IRR

NPV or Payback

BET or NPV

Accounting rate of return = Average net income / Average book value  

Average book value = (cost of equipment - salvage value) / 2

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

The NPV and IRR considers the time value of money by discounting the cash flow at discount rate.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

7 0
3 years ago
The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for
elena-s [515]

Answer:

The answer is:

This statement is false. Fluorescent light bulbs (FLB) and incandescent light bulbs (ILB) are substitute goods, so a decrease in the price of one of them (FLB) should increase the quantity demanded for that product (FLB) and decrease the quantity demanded of the other (ILB).

A decrease in the price of any product (including ILB) would never decrease its quantity demanded.

3 0
3 years ago
what challenges might people living in a county or state with a high concentration of subprime scores be facing as a result of t
Setler [38]

The challenges people living in a county or state with a high concentration of subprime scores might be facing as a result of the low credit scores are:

I. Poverty.

II. Famine and hunger.

III. Low level of healthcare.

A credit score can be defined as a numerical expression ranging 300 to 850, which typically represents an individual's financial history and credit worthiness.

This ultimately implies that, the higher your credit score, the higher and better it is to obtain a credit (money) from a potential lender and vice-versa.

In the U.S, the ratings of a credit score by FICO include the following;

  • A credit score ranging from 670 to 739 is considered to be a good credit score.
  • A credit score of 740 to 799 is better.
  • A credit score of 800 to 850 is considered to be excellent.

In this context, the challenges people living in a county or state with a high concentration of subprime scores might be facing as a result of the low credit scores are:

I. Poverty.

II. Famine and hunger.

III. Low level of healthcare.

Find more information: brainly.com/question/14379808

3 0
2 years ago
What are the main advantages and disadvantages of organizing a firm as a​ corporation? the advantages​ are: ​(select all the cho
Elena L [17]

I believe the answers are:

a. there is no limit on the number of owners a corporation may​ have, thus allowing the corporation to raise substantial amounts of capital.

They do this by selling shares on the stock market. When the shares is sold in this place, every individuals who can afford the price of  a single share are eligible to be part owner of the corporation.

b. the life of the business can continue beyond the death of any of the owners.

In corporations, when one of the owners somehow died, the ownership of the corporations would be transferred to the person whould receive the inheritence (usually immdediate family members)

c. the corporation can use the assets of the owners to pay for corporate liabilities.

This happen during the liquidation process. To pay for corporate liabilities, owners had to sell their assets with the equal value of their percentage of their ownership times the amount of liabilities.

4 0
3 years ago
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