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Marizza181 [45]
3 years ago
7

New Markets has $1,000 face value bonds outstanding that pay interest SEMIANNUALLY, mature in 16 years, and have a 4 percent cou

pon. The current price is quoted at 93.546. What is the yield to maturity?
Business
1 answer:
eimsori [14]3 years ago
5 0

Answer:

4.58%

Explanation:

Using the financial calculator as shown below , we can determine the yield to maturity which is the  discount  rate used in discounting bond's future cash flows to present:

N=32 (number of semiannual coupons in 16 years=16*2=32)

PMT=semiannual coupon=$1000*4%*6/12=$20

PV=-935.46(93.546%*$1000=$935.46 )

FV=1000 (face value)

lastly enter I/Y=2.29% (semiannual yield to maturity)

annual yield to maturity=2.29% *2=4.58%

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In the 1950s, imports and exports of goods and services constituted roughly 4% to 5% of U.S. GDP. In recent years, exports have
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Answer:

a) An increasing number of import quotas

b) Better high-speed rail lines

c) Improvements in telecommunications

d) International trade agreements such as the General Agreement on Tariffs and Trade (GATT)

Explanation:

All of the above applies as in order to increase the international trade.

As with the increase in quotas there is a pressure to increase the imports. Further when there is easy chain of supply even in the international market that is railway facility is smooth and that the telecommunications is also easy.

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3 years ago
The ""covenant"" traditionally signifies the a. relationship between Abraham (and later Moses) and Jahweh. b. merging of Judaic
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The correct answer to the question above is:

a. relationship between Abraham (and later Moses) and Jahweh.

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Download docx
8 0
3 years ago
What are three common types of federal taxes?
anastassius [24]

three common types of federal taxes are :

1. income tax

2. Property tax

3.Sales tax

5 0
3 years ago
Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company
blsea [12.9K]

Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

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New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

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Therefore the new WACC will be 8.9%

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3 years ago
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yarga [219]
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