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disa [49]
3 years ago
5

The bonds issued by United Corp. bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000

face value. Currently, the bond sells at $955. The yield to maturity (YTM) is _____%.
Business
1 answer:
pishuonlain [190]3 years ago
8 0

Answer: 6.40%

Explanation:

Use Excel to calculate this by the formula;

= RATE(Nper,Pmt,-Pv,Fv)

Nper is number of periods = 20 * 2 = 40 semi annual periods

Pmt is the payment = $6%/2 * 1,000 = $30

Pv is the present value = $955

Fv is future value or face value = $1,000

= RATE (40,60,-955,1000)

= 3.20% * 2 (because this is a semi annual rate)

= 6.40%

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The activity concerned with the production of goods and services is called​
kifflom [539]
Answer: Labor
Explanation: Human Resources (labor) The quantity and quality of human effort directed toward producing goods and services (also called labor).
8 0
3 years ago
Theodosia was laid off from her last job. What should she put on her next application as her reason for leaving that job?
OleMash [197]

Answer:

O Downsizing

Explanation:

A lay off happens when the employer has closed down, has changed locations, or when there is not sufficient work for all the employees. A layoff is not caused by an employee's fault.

Downsizing refers to scaling down of operation. When a company downsizes, some of the employees will be laid off. Theodosia should mention she was laid off in her next application. The potential employer will realize that she wasn't at fault at her previous workplace.

8 0
3 years ago
Which one of these statements is correct? Long-term debt is the residual difference between assets and liabilities. Net income t
sergey [27]

Answer:

Long term debt requires a payout of cash within a stated time period.

Explanation:

When entering into a long term debt, there are terms and conditions like interest to be charged and payment terms so obviously there is an expected cash payout to repay the debt at a stated time period.

3 0
3 years ago
Read 2 more answers
You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 30%. The T-bill rate is 6%. Your
Roman55 [17]

Answer:

Explanation:

Expected return of the portfolio is weighted average of the return of the components.

E(R) = w1 * R1 + w2 * R2

E(R) = 65% * 18% + 35% * 6%

E(R) = 11.70% + 2.10%

Expected Return, E(R) = 13.80%

Standard deviation of portfolio is mathematically represented as:

\sigma =\sqrt{w_1^2\sigma _1^2+w_2^2\sigma _2^2+2w_1w_2p_{1,2}\sigma_1\sigma_2}

where

w1 = the proportion of the portfolio invested in Asset 1

w2 = the proportion of the portfolio invested in Asset 2

σ1 = Asset 1 standard deviation of return

σ2 = Asset 2 standard deviation of return

For risk free money market fund, standard deviation = 0 and its correlation with risky portfolio = 0

\sigma  =\sqrt{ (0.65 * 0.30)^2 + (0.35 * 0)^2 + (2 * 0.65 * 0.30*0.35 *0*0)} \\\\= \sqrt{0.038025 +0+0} \\\\ = 0.195

Standard deviation = 19.50%

7 0
3 years ago
You are considering buying a stock with a beta of 3.05. If the risk-free rate of return is 8.0%, and the expected return for the
elena55 [62]

Answer:

38.5%

Explanation:

Rf = 8.0%

Rm = 18.0%

Beta = 3.05

RRR ?

from the given data the capital asset pricing model will be used to calculate the RRR

RRR = Rf + β (Rm - Rf)

        =8.0 + 3.05 (18.0-8)

         =38.5%

6 0
3 years ago
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