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Murljashka [212]
3 years ago
5

Sheridan Corp is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.825 percent. If th

ese bonds have a market price of $985.63, what yield to maturity can she expect to earn?
Business
1 answer:
krek1111 [17]3 years ago
8 0

Answer:

The annual YTM will be = 0.063496 or 6.3496% rounded off to 6.35%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

  • C is the semi annual coupon payment  in case of semi annual bond
  • F is the Face value of the bond
  • P is the current value of the bond
  • n is the number of semi annual periods to maturity  in case of the semi annual coupon bond

Assuming that the face value of the bond is $1000.

Coupon payment - semi annual= 1000 * 0.05825 * 6/12 = 29.125

Number of semi annual periods = 3 * 2 = 6

YTM - semi annual= [ (29.125 + (1000 - 985.63 / 6))  /  (1000 + 985.63 / 2)

YTM - semi annual= 0.031748 or 3.1748% rounded off to 3.17%

The annual YTM will be = 0.031748 * 2 = 0.063496 or 6.3496% rounded off to 6.35%

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The question, "What are the distinguishing characteristics of effective leaders?" sparked which approach to the study of leaders
Sergio [31]

Answer:

behavioral approach to the study of leadership

Explanation:

In simple words, The behavioral approach is only concerned with what managers do and what they behave. The behavioral approach broadened the science of leadership to encompass the activities of leaders toward followers in diverse settings by moving the study of leadership to leader behaviors. Monitoring and analyzing a leader's movements and behaviors in response to a given circumstance is central to behavioral leadership theory.

7 0
3 years ago
The company's fixed costs that are traceable to the Northern branch is $175,000, while fixed costs that are traceable to the Sou
Lostsunrise [7]

Answer:

$18,050

Explanation:

The computation of the common fixed cost of two order types for the northern branch is shown below:

= Company fixed cost traceable to the northern branch   - traceable fixed cost for the local - traceable fixed cost for the non local

= $175,000 - $68,250 - $88,700

= $18,050

For computing it we simply deducted the traceable fixed cost from the company fixed cost so that the common fixed cost for the two orders types could come

The common fixed cost is the cost which supports more than the one division in the same business

3 0
3 years ago
The balance sheet is a financial statement that measures the flow of funds into and out of various accounts over time, whereas t
vitfil [10]

Answer:

True

Explanation:

Balance sheet is the financial report of an organization that includes investments, liabilities, assets wealth, overall debt, etc. during a given time.

The income statement is one of the company's financial statements that indicates the company's profits and expenditures for a specific period of time. This shows how the profits are converted into net revenue or net income.

8 0
3 years ago
5. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located ware
damaskus [11]

Answer:

Explanation:small number of centrally locates warehouses will make their products readily available in needed small quantities. While having a larger warehouse nearer to the end customers will make the product easily accessible

8 0
3 years ago
On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in ex- change for 12,500 shares of $25 pa
Georgia [21]

Answer:

Journal Entry to be recorded

DR.    Land                                           $475,000

                 Cr.     Common stock                          $312,500

                 Cr.     Add-in-capital common stock  $162,500

Explanation:

Number of Shares = 12,500 shares

Share Market price = $38

Share Par Value = $25

Total value of property to be recorded= 12,500 x $38 = $475,000

Common stock value at par = 12,500 x $25 = $312,500

Add-in-Capital common stock value = $475,000 - $312,500 = $162,500

Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.

7 0
3 years ago
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