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
Svetradugi [14.3K]
3 years ago
5

SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face

value of the bonds is $1,000 and the bonds mature on January 1, 2019. What is the yield to maturity for an SWH Corporation bond on January 1, 2010 if the market price of the bond on that date is $950
Business
1 answer:
Mama L [17]3 years ago
3 0

Answer:

6.23%

Explanation:

From Jan 2019 to Jan 2010 = 9 years

N = 9 years*2 = 18

PV = $950

Coupon payment = $27.5 (1000*5.5%/2)

FV = $1000

<em>We need to solve for YTM using the MsExcel function</em>

Yield to maturity = YTM(n, pv, pmt, fv) * 2

Yield to maturity = YTM(18, 950, 27.5, 1000) * 2

Yield to maturity = 0.03117 * 2

Yield to maturity = 0.06234

Yield to maturity = 6.23%

You might be interested in
Silverwood Company is considering the following alternatives: Alternative A Alternative B Revenues $100,000 $200,000 Variable co
lana66690 [7]

Answer:

to find profit make

%profit =selling price + cost price ÷ cost price

5 0
3 years ago
A hostile takeover is a situation in whicha.the management and board of directors of the targeted firm disapprove of the propose
Tasya [4]

Answer: a - the management and board of directors of the targeted firm disapprove of the proposed merger

Explanation:

A hostile takeover is a situation where the board of directors and senior managers are against the proposed merger.

There are several pre-offer takeover defense mechanisms. One of them is the golden parachute.

The golden parachute is a compensation agreement between a firm and its senior managers. The firm promises a very lucrative amount of money if the senior managers leave the firm if there's a change of control.

There are also post offer takeover defense. They include:

A. The crown jewel - in a crown jewel the firm sells off a subsidiary or an asset to a third party in an effort to mitigate the hostile take over.

B. Greenmail - the target buys its shares back from the acquiring company at a price higher than the market price. This is done with an agreement that the acquirer leaves the target company. It is a form of payoff by the target company.

5 0
3 years ago
Black Corporation declared $50,000 cash dividends to shareholders. The coporation has 4,000 shares of $25-par, 5% preferred stoc
Liono4ka [1.6K]

Answer:

$5,000 will be distributed to preferred stockholders and $45,000 will be distributed among common stockholders.

Explanation:

The accrued dividend on preferred stock based on predetermined rate or amount is known as preferred stock dividend. Preferred stock has priority over common stockholders, It means that dividend will be given to preferred stockholder first.

Preferred stock dividend = 4,000 shares x $25 x 5% = $5,000

Common stock dividend = $50,000 - $5,000 = $45,000

6 0
4 years ago
The current interest rate on a savings account is 1.85%. The current inflation is 1.9%. What is the real dollar return on this a
kogti [31]
1.67 is the correct answer
8 0
4 years ago
Read 2 more answers
When companies incur selling and administrative costs, those costs ________.
9966 [12]

Answer:

increase

Explanation:

7 0
3 years ago
Other questions:
  • Players will be issued what color cards for fouls, depending on the seriousness of the penalty.
    10·1 answer
  • If a company hires too many employees and discovers later that it can't afford them, it may have to do what?
    7·2 answers
  • What form of intellectual property is a formula, practice, process, design, instrument, pattern, commercial method, or compilati
    12·1 answer
  • Assume the initial present value of the payments on a lease are equal to the cost of the leased asset. This capital lease is rec
    12·1 answer
  • ___________ requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud.
    14·2 answers
  • "Discuss the financial and operational implications for airlines as they try to offer the newest technology services?"
    6·1 answer
  • Benefits of a better education include all of the following except
    13·2 answers
  • Which assertion relates to the following statement? "Assets, liabilities, and equity interests are included in the financial sta
    13·1 answer
  • Garcia Co. sells snowboards. Each snowboard requires direct materials of $113, direct labor of $43, and variable overhead of $58
    11·1 answer
  • Pr 6-3a weighted average cost method with perpetual inventory
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!