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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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Answer and Explanation:

Given:

Total car = 200

Rate = $29

Computation:

Total increase in rate = a

So , Total decrees in car = 5a

Total income (y) = [200-5a][29+a]

y = 5,800 + 200a - 145a - 5a²

y = 5,800 + 55a - 5a²

y' = dy / da [5,800 + 55a - 5a²]

y' = -10a + 55

in which , y' = 0

0 = -10a + 55

a = 5.5

So , Maximum rate = $ [29+5.5]

Maximum rate = $34.5

maximum income = 5,800 + 55(5.5)- 5(5.5)²

maximum income = 5,800 + 302.5 - 151.25

maximum income = $5951.25

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3 years ago
You will have $ in 20 years if you set aside $2,000 at 8%. (Use the future value tables from Chapter 5.)
Romashka-Z-Leto [24]

In 20 years you'll have $5,220.

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2,000+(160×20)= 5,220.

4 0
2 years ago
According to a 2000 public opinion poll, 69 percent of americans who responded were most proud of the nation’s
aalyn [17]

According to a 2000 public-opinion poll, 69 percent of Americans who responded were most proud of the nation's equal opportunity laws.


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2 years ago
During a recent​ month, Company planned to provide cleaning services to customers for per hour. Each job was expected to take ho
givi [52]

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Explanation:

The company originally planned to have revenue resulting from 30 customers and charging $30 for an estimated 33 hours.

Estimated revenue was;

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