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
Zielflug [23.3K]
3 years ago
9

South Carolina Industrial Products' bonds have a 7.00 percent coupon and pay interest annually. The face value is $1,000 and the

current market price is $1,062.50 per bond. The bonds mature in 16 years. What is the yield to maturity
Business
1 answer:
skelet666 [1.2K]3 years ago
3 0

Answer:

YTM = 0.06409 or 6.409% rounded off to 6.41%

Explanation:

The YTM or yield to maturity is the yield or return that the bond will provide if it is purchased today and held till maturity. The formula to calculate the YTM will be,

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
  • n is the number of years to maturity

Coupon = 1000 * 0.07 = 70

YTM =  [ (70 + (1000 - 1062.50)/16)  /  ((1000 + 1062.50)/2) ]

YTM = 0.06409 or 6.409% rounded off to 6.41%

You might be interested in
After developing a computer locking system, Caffrey Computer Corp. worked out a licensing deal with Chicago Desktop (a potential
Vika [28.1K]

Answer:

<u>A Strategic Alliance</u>

Explanation:

A Strategic Alliance refers to a combined effort or activities of two firms so as to strengthen their market position and yet at the same time maintain their individual separate corporate existence.

It represents a mutually beneficial agreement between two corporate firms under which, terms are less binding and stringent than a joint venture.

The purpose behind such an alliance could be, expansion, product line improvement or together gain a competitive advantage.

Such an alliance helps both businesses achieve a common goal driven by mutual assistance and pooling of resources.

In the given case, the tie up between Caffery computer corp. and Chicago desktop to sell computer locking systems alongside computers, would be termed a strategic alliance, since such an arrangement would benefit both, reduce competition for each with collective gain w.r.t market share.

3 0
3 years ago
Bramble Corp. purchased a delivery truck for $38,800 on January 1, 2019. The truck has an expected salvage value of $1,800, and
Advocard [28]

Answer:

$0.37

Explanation:

Depreciable cost = cost of asset - salvage value

$38,800 - $1,800 = $37,000

Depreciable cost per mile = $37,000 / 100,000  = $0.37

5 0
3 years ago
easynotrcards Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the cen
Alina [70]

Answer:

D) foreign; domestic

Explanation:

The central Bank can improve the domestic currency by using the reserves. If the domestic currency undervalued the central bank may intervene to sell the Foreign currency and purchase the domestic currency, which will increase the demand of domestic currency and increase the supply of foreign currency in the market which will improve the value of domestic currency and undervalue the foreign currency.

7 0
3 years ago
Read 2 more answers
Barges' has an asset beta of .57, the risk-free rate is 4.3 percent, and the market risk premium is 7.7 percent. what is the equ
Luden [163]

Barges' has an asset beta of .57, the risk-free rate is 4.3 percent, and the market risk premium is 7.7 percent.

7 0
3 years ago
Growing chocolate is important to West African economies but they do not make as much money as the multinational companies that
kupik [55]

Answer: The name of the ghanaian brand is "57 chocolate"

Explanation:

57 Chocolate belongs to two sisters

Priscilla and Kimberly Addison, the creators of 57 chocolate, made in Ghana by Ghanaians, for Ghanaians. Their chocolates which come in dark, milk, white chocolate, mocha latte and bissap flavours are uniquely packaged in adinkra symbol shapes. and is the pioneer bean to bar chocolate business in Ghana. This venture uses resources grown within the country to create delicious chocolate

7 0
3 years ago
Other questions:
  • A check with a future date on it is called
    12·1 answer
  • Cuales son sus elementos de ciencia
    13·1 answer
  • You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $4,500 with low monthly pay
    14·1 answer
  • You are the PR officer of a major MNE in the chemical industry. The national press in your home country alleges that your compan
    10·1 answer
  • Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $240,000 of 10-year, 9
    15·1 answer
  • Companies Heidee and Leaudy are virtually identical in that they are both profitable, and they have the same total assets (TA),
    15·1 answer
  • Fiji, Inc. started 2025 with $12,000 in assets and $2,500 in liabilities. Fiji had issued 50 shares of stock when it went into b
    7·1 answer
  • Dividing Partnership Net Income Han Lee and Monica Andrews formed a partnership, dividing income as follows: Annual salary allow
    13·1 answer
  • Who wants branliest???!!!
    12·1 answer
  • Of the following are money market instruments except? a tax anticipation notes b treasury notes c certificates of deposit d comm
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!