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
slava [35]
3 years ago
9

Question 4. The price of a bond with 4 years to maturity that pays interest of $12 each half-year is $106. What is the current y

ield, the capital gains yield and the yield to maturity of this bond
Business
1 answer:
n200080 [17]3 years ago
3 0

Answer:

Face value of bond = 100

Years of maturity = 4

Market value = 106

Coupon frequency = 2

Semi annual coupon = 12

1. Current yield = Semi-annual * Coupon frequency / Market value

Current yield = 12 * 2 / 106

Current yield = 0.2264150943396226

Current yield =  22.64%

2. YTM = 2*Rate(Years of maturity*Coupon frequency, Semi annual, - market value, FV, 0)

YTM = 2*Rate(4, 2, 12, -106, 100,0)

YTM = 0.2168

YTM = 21.68%

3. Capital yield = Current yield - YTM

Capital yield = 21.68% - 22.64%

Capital yield = -0.96%

You might be interested in
A relatively new type of very fast direct connection available to homes and businesses in areas where there is fiber-optic cabli
kotykmax [81]

A relatively new type of very fast direct connection available to homes and businesses in areas where there is fiber-optic cabling available all the way to the building is generically called fibr optic broadband.

Fibr optic broadband, from the name of its material uses fiber-optic cables guarantees faster and more stable and reliable connection compared to the DSL connection. Fibr connection can also cover far distances up to 100 kilometers compare to DSL connection which uses copper wire cable that has the limit of only 100 meters.

<span>Fibr optic broadband also assures more bandwidth and no lags when it comes to large data applications.</span>

4 0
3 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,
Margaret [11]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

<u>return:</u>

In this case, it will be the cost saving for the new machine: 161,000

<u>investment</u>

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new   = 444,000

<u>Then, proceed to calculate:</u>

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

3 0
3 years ago
A patent owner cannot exclude others from _____ his or her invention.
Elza [17]
I think it’s D I don’t know if I’m wrong or right but D sounds right
5 0
3 years ago
What happens during the exit stage of a company?
bekas [8.4K]
<span>The Exit stage is when the entrepreneur gets out of the day-to- day commitment of running the company.</span>
3 0
3 years ago
Read 2 more answers
Which best compares and contrasts the teaching and training careers and the professional support careers?
ohaa [14]

The teaching and training careers and the professional support careers can be compared because option  A) Both careers try to support student success; however, teaching and training careers involve direct instruction of students.

<h3>What are teaching and training careers and the professional support careers ?</h3>

They are both careers that is needed for the students so they can come out with flying colors.

For instance, teaching involves passing across knowledge to students, and the teacher is expected to use different techniques so that the students can cope and be successful academically.

Therefore, option A is correct.

Learn more about careers  at:

brainly.com/question/6947486

#SPJ1

7 0
2 years ago
Other questions:
  • The census bureau and the u.s. department of commerce are examples of
    7·1 answer
  • Jose has a limited Google Ads budget, and his ads aren’t showing as often as he wants. How might he improve results without spen
    7·1 answer
  • Which of the following is a personal drivers of Employee Engagement
    15·2 answers
  • By examining relationships between items in the statement of cash flows, investors and creditors can do all of the following exc
    5·1 answer
  • Fixed costs can be defined as costs that A. are incurred only when production is large enough. B. vary inversely with production
    7·1 answer
  • Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car. what’s
    11·2 answers
  • For segmentation strategy to be successful, the customers in the segment must react similarly and positively to firm's offering,
    5·1 answer
  • The valuation of a financial asset is based on the concept of determining the present value of future cash flows that this finan
    14·1 answer
  • Why is it important to screen your business idea?​
    14·1 answer
  • When choosing where to eat lunch, Sharon looks for restaurants where she will be seated promptly and served her meal quickly. Fo
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!