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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%

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What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something hap
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The concept that consists of the distinct phases that a family progresses through from formation to retirement, each phase bring
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The correct answer is: family life cycle.

Explanation:

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3 years ago
It will cost $4,000 to acquire a small ice cream cart. Cart sales are expected to be $3,200 a year for five years. After the fiv
Anna [14]
Cost = $4,000
Revenues = $3,200 per year
Life = 5 years

Payback period calculation:
Year -----   Cash flow -------- Investment
Yr 0 -----               ------------ -4,000
Yr 1 ------   3,200  -----------  -800
Yr 2 ------   3,200 -------------- 0

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3 years ago
Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled,
Svetradugi [14.3K]

Answer:

The total amount of administrative cost to the Accounting Department is $ 14,900.

Explanation:

In order to calculate the total amount of administrative cost to the Accounting Department, first we need to calculate the Utilization Ratio of the particulars, using the following formua:

Utilization Ratio=(Total amount particular/Utilised by accounting department)

Hence, the Utilization Ratio of Administration costs =(50/280)

                                                                                    =0.178

             the Utilization Ratio of Maintenance fee =(12,000/36,000)=0.33

             the Utilization Ratio of Utilities=(12,000/36,000)=0.33

Therefore, the total amount of administrative cost to the Accounting Department=(0.178×$50,000)+(0.33×$12,000)+(0.33×$6,000)

                  =$8,900+$4,000+$2,000

                  =$14,900

6 0
4 years ago
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