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Gre4nikov [31]
3 years ago
15

Five years ago Tosev Inc. issued 30-year, $1,000 par value, semi-annual coupon bonds with a coupon rate of 9.10 percent. The bon

ds originally sold at a price of $1,010.32 per bond. Currently, those bonds have a market price of $1,118.15 per bond. The Chief Financial Officer of Tosev is currently considering issuing new bonds. These bonds will have a par value of $1,000, semi-annual coupon payments, a term of 25 years and a coupon rate of 8 percent. Due to differences in the legal provisions of the bonds, the Chief Financial Officer estimates that the yield to maturity on the new bonds will be one percent higher than the current yield to maturity on the old bonds. Based on the Chief Financial Officer's estimate, what would be the price per bond of the new bonds today?
A. $ 817.44
B. $ 896.67
C. $ 901.19
D. $1,000.00
E. $1,118.15
Which of the following statements is most correct?
A. If a bond's yield to maturity exceeds its annual coupon rate, then the bond will be trading at a premium.
B. If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero coupon bond.
C. If a coupon bond is selling at par, its current yield equals its yield to maturity. (Hint: a bond's current yield equals annual coupon payment divided by current price).
D. Both a and c are correct.
E. None of the answers above is correct.
Business
1 answer:
liubo4ka [24]3 years ago
5 0

---------------------Explanation:

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I am Lyosha [343]

Answer:

6.82%

Explanation:

In this question we use the PMT formula that is shown on the attachment below:

Given that,  

Present value = 102.037% × $2,000 = $2,040.74

Future value = $2,000

Rate of interest = 6.62% ÷ 2 = 3.31%

NPER = 18 years  2 = 36 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $68.15

Now the coupon rate is

= PMT ÷ face value × 2

= $68.15 ÷ $2,000 × 2

= 6.82%

8 0
3 years ago
What economic theory would be most likely to make a person oppose taxing imports?
aleksklad [387]

The economic theory most likely to make a person oppose taxing imports is "<u>Laissez-faire"</u>

"Laissez-faire" is an economic theory that opposes the government's involvement in economic affairs.

Imposing a tax on imports can have implications for local businesses.

Thus, this theory gained popularity in the USA in the 18th century opposing the government's intervention in economic affairs.

It's a French phrase that means "Let us do," because people believed that imports and exports should be managed by states and not the central government.

Scholars believed that economies go down when governments start imposing taxes on imports.

If you need to learn more about Laissez-faire, click here:

brainly.com/question/23946713

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5 0
2 years ago
How does excessive money in the economy lead to inflation?
ANTONII [103]
Wish I could help sorry
6 0
4 years ago
A town's garbage trucks accidentally sideswiped two parked automobiles in the fiscal year ended December 31, 2019. One case was
asambeis [7]

Answer:

The answer is "$13,000".

Explanation:

In the given question, From December 31, 2019, the sum should also be $13,000 as just a liability for both the general fund. Its first village owner is $3000 as well as the second villager is $10,000, because their contingent liability is registered to a fair degree, that's why its correct answer is "$13,000".

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g100num [7]
Jasper could most certainly claim depreciation on the computer that is, 50% of it plus 50% of the purchase price and I know because I am self-employed too and I know that legitimate office expenses like a new printer, printer paper etc can be claimed according to the amount used for the business.
7 0
3 years ago
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