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3 years ago

When a bond's yield to maturity is less than the bond's coupon rate, the bond: ____________

Business

1 answer:

Sholpan [36]3 years ago

8 0

Answer:

The answer is (B) The bond is selling at a premium

Explanation:

What does it mean when a bond's YTM is less than its CR?

It means that the value of the bond in the market is higher than its value at par.

YTM and CR are two important factors influencing the purchase of bonds by investors.

YTM is the interest rate accruing to the sale of a bond which is held by the investor until its maturity date. It is measured in points or percentage.

CR is the amount of interest accruing to the owner/buyer of a bond. It is measured per annum.

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Catering Corp. reported free cash flows for 2008 of $8.17 million and investment in operating capital of $2.17 million. Catering

gtnhenbr [62]

Answer:

$11.59 million

Explanation:

The computation of earning before interest and tax is shown below:-

Free cash flow = Operating cash flow - Investment in operating cash flow

$8.17 million = Operating cash flow - $2.17 million

Operating cash flow = $10.34 million

For calculating the earning before interest

Operating cash flow = Earning before interest - Taxes + Depreciation

$10.34 million = Earning before interest - $2.17 million + $0.92 million

= $10.34 million = Earning before interest - $1.25 million

Earning before interest = $11.59 million

5 0

3 years ago

You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, w

Rom4ik [11]

Answer:

First deposit will be $11,213.87

Explanation:

To derive how much the first deposit must be, the deposit can be derived by using payment formula for growing annuity

P = FV x (r - g) / [(1 + r)^n - (1 + g)^n]

When FV = $1,000,000

r = 7%

g = 3%

n = 25

Hence, First payment will be:

P = 1,000,000 * (7% - 3%) / (1.07^25 - 1.03^25)

P = 1,000,000 * 4% / 5.427433 - 2.093778

P = 40,000 / 3.333655

P = 11998.842

P = $11,998.84

However, this formula is applicable when the payments are made at the end of the year. In this case the payments are upfront, occurring today. We need to adjust this first payment to reflect the early payment.

Hence, first payment = $11,998.84 / (1 + 7%)

First payment = $11,998.84 / (1 + 0.07)

First payment = $11,998.84 / 1.07

First payment = 11213.8691588785

First payment = $11,213.87

7 0

3 years ago

1. What are the three key assets that Walmart can leverage (build on) to compete with Amazon and other online retailers

Colt1911 [192]

Answer:

The 3 important assets that Walmart can be used to remain competitive with Amazon have been listed below.

Explanation:

Driven by the increasing utilization of internet shopping, retail chains, together with Walmart, were concerned about its business model. However, as Walmart is still in a safe stance and has been for some moment, it could be said that this same corporation does have some methodologies to encourage Amazon, its biggest throughout the world corporation.

Walmart seems to have the biggest independent water channel transportation system.
It would have the fastest-growing traditional retail stores across the U.S. Just because of this, this has become a density.
Also, this same strategy will enhance the percentage of warehouses and therefore a retail distribution channel.

5 0

3 years ago

You have received a call from a processor that is having quality problems with their pork. They are noticing areas of product lo

const2013 [10]

Answer:

The investigating areas should be field, processing units and finished goods inventory.

Explanation:

The business units should be considered for quality control. The quality of the product is the main cause of concern for any business. When the poor quality products are processed customers will move away from the business. Total Quality Management or TQM approach is used to make the products best fit.

6 0

3 years ago

A department has budgeted monthly manufacturing overhead cost of $510000 plus $3 per direct labor hour. If a flexible budget rep

strojnjashka [21]

Answer:

Direct labor hour will be 158000

Explanation:

We have given manufacturing overhead cost = $510000

An total budgeted manufacturing cost = $984000

So balance variable cost = $984000 - $51000 = $474000

It is given that $3 per direct labor hour

We have to fond the number of labor hours

So number of direct labor hours will be $=\frac{474000}{3}=158000$

So dire t labor hour will be 158000

3 0

3 years ago