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bixtya [17]
3 years ago
6

Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,910.50. The bond has a coupon rate of 7.05 percent and m

atures in 19 years. If the bond makes semiannual coupon payments, what is the YTM of the bond
Business
1 answer:
meriva3 years ago
6 0

Answer:

Yield to maturity of the bond is 7.5%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $2,000

Coupon payment = $2,000 x 7.05% = $141/2  = $70.5 semiannually

Selling price = P = $1910.50

Number of payment = n = 19 years x 2 = 38

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [$70.5 + ( 2,000 - 1,910.50 ) / 38 ] / [ (2,000 + 1,910.50 ) / 2 ]

Yield to maturity = 72.86 / $1,955.25

Yield to maturity = 3.73% Semiannual

Yield to maturity = 7.5% annually

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pochemuha

Answer: The correct answers are "A. Accept" and "$ 0.01".

Explanation: Given that we talk about optimal strategy when maximizing the expected profit by the player:

In the first case It is convenient to accept the proposal and keep $ 0.12, instead of rejecting it and running out of nothing.

And in the second case it is convenient to give the classmate as little as possible so that he accepts and we have a greater profit.

4 0
3 years ago
Southwest Airlines uses its assets very productively. Its turnaround time, or the time that its airplanes sit on the ground whil
mario62 [17]

Answer: Efficiency

Explanation:

Efficiency shows the highest performance level that utilizes the smallest amount of inputs to attain the biggest amount of output. Efficiency is the act of reducing unnecessary resources used in the production of a given output.

Efficiency reduces the waste of resources like energy, physical materials, and time albeit achieving the desired output. It is the aim of every organization to get the best results using the least cost. Southwest Airlines is efficient in its production since it uses its assets and time well.

8 0
3 years ago
10
SCORPION-xisa [38]

Answer:

I want to say c cause it's 40 but then again I don't know

6 0
3 years ago
Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this
zysi [14]

Answer:

It is more profitable to continue processing the units.

Explanation:

Giving the following information:

Product A:

Units= 23,000

Selling price= $420,000

Continue processing:

Product B= 6,000 units sold for $106 each

Product C= 11,900 units sold for $52 each

Total cost= $280,000

We need to calculate the effect on the income of both options and choose the most profitable on<u>e. We will not take into account the first costs of Product A because they are irrelevant.</u>

Option 1:

Effect on income= $420,000

Option 2:

Effect on income= (6,000*106) + (11,900*52) - 280,000

Effect on income= $974,800

It is more profitable to continue processing the units.

7 0
3 years ago
Axel steals a business law textbook from beth. curt, who does not know that the book is stolen, buys it from axel. curt has comm
alex41 [277]
The answer is that C<span>urt has committed conversion.
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3 years ago
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