1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tangare [24]
2 years ago
9

A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity

(YTM)?
Business
1 answer:
aleksandr82 [10.1K]2 years ago
7 0

Answer:

YTM = 0.070616 or 7.0616% rounded off to 7.06%

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 coupon payment
  • F is the Face value of the bond
  • P is the current value of the bond
  • n is the number of years to maturity

Coupon payment = 1000 * 0.08 = 80

YTM = [ (80 + (1000 - 1110 / 20))  /  (1000 + 1110 / 2)

YTM = 0.070616 or 7.0616% rounded off to 7.06%

You might be interested in
Which of the following statements best describes a chart of accounts?
krok68 [10]
The right answer for the question that is being asked and shown above is that: "d. It s a list of account titles in the order in which they can be found in the ledger." The statement that best describes a chart of accounts is that d. It s a list of account titles in the order in which they can be found in the ledger.<span>
</span>
8 0
3 years ago
Phildell Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate f
AysviL [449]

Answer:

Total deduction                               2,443.21

Explanation:

8,288

x 6.20% Sccial Security                      513.856

x 1.45% Medicate                                120.176

x 6.20% FUTA&SUTA  (for 7,000)       434              

Income tax witheld                           1,375.17

Total deduction                               2,443.21

We will multiply his taxable wages for period by the tax rate.

We must noticew FUTA and SUTA applies fdor the first 7,000 only so we multiply by 7,000 not by 8,288

3 0
3 years ago
Universal Containers sells through many different reseller networks. Each reseller's deals are tracked on separate opportunities
tatiyna

Answer: change the forecast category to omitted on the duplicate opportunities

Explanation:

The sales process should be modified to ensure opportunities are not double-counted in the pipeline by changing the forecast category to omitted on the duplicate opportunities.

When this is done, the multiple opportunities for the same end customer will be curtailed and hence, there'll be accuracy with regards to the pipeline report.

5 0
3 years ago
Elevator speech is another term for
Fynjy0 [20]

Answer:

An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period of time.

4 0
3 years ago
Read 2 more answers
Capital that is invested by private companies outside of their home countries is called:
Vedmedyk [2.9K]
FDI , Foreign direct investment
3 0
3 years ago
Other questions:
  • Using the Internet, locate a list of the top tourist destinations in the United States. Use photos from these destinations (one
    6·2 answers
  • Discuss motown production techniques as applied to motown girl groups of the 1960s, including specific artists and performance/n
    7·1 answer
  • On June 1, 2021, Wildhorse &amp; Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note w
    6·1 answer
  • If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:
    10·1 answer
  • Sort the examples below into the appropriate bin. Think about which factors could lead to more toxic substances being released i
    8·1 answer
  • An investment property with 10 residential units rents for $2,000 per unit per month. The rate of vacancy and collection loss is
    9·1 answer
  • Watunga County Bank agrees to lend Vaughn Granite Company $599000 on January 1. Vaughn Granite Company signs a $599000, 8%, 9-mo
    6·1 answer
  • Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking re
    6·1 answer
  • Say’s law argues that a given ____________________ must create an equivalent ________________________ somewhere else in the econ
    7·1 answer
  • Deliverables:______.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!