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
VashaNatasha [74]
3 years ago
8

Last year Carson Industries issued a 10-year, 14% semiannual coupon bond at its par value of $1,000. Currently, the bond can be

called in 6 years at a price of $1,060 and it sells for $1,300. What are the bond's nominal yield to maturity and its nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: % YTC: % Would an investor be more likely to earn the YTM or the YTC?
Business
1 answer:
Alex_Xolod [135]3 years ago
3 0

Answer and Explanation:

The computation is shown below:

For nominal yield to maturity

Given that

NPER = 9 × 2 = 18

PMt = $1,000 ×14% ÷ 2 = $70

PV  = -$1,300

FV = $1,000

The formula is shown below:

= RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the yield to maturity is 9.05%

For nominal yield to call

Given that

NPER = 6 × 2 = 18

PMt = $1,000 ×14% ÷ 2 = $70

PV  = -$1,300

FV = $1,060

The formula is shown below:

= RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the yield to call is 8.34%

As the yield to maturity is more than the yield to call so the bond would be likely to called

You might be interested in
The Securities Investor Protection Corporation is a government agency charged with administering the liquidation of failed secur
deff fn [24]

Answer:

False

Explanation:

First of all, the Securities Investor Protection Corporation is not a government agency. The S.I.P.C was formed in 1970 under the Securities Investor Protection Act as a non-profit membership corporation.

In the unfortunate event that a securities firm fails (which is rather unlikely), the S.I.P.C steps in to help the investor. It can help by either transferring the accounts of the failed firm to a different firm or by liquidation.

4 0
3 years ago
How might a recent college graduate's investment portfolio differ from someone who is nearing retirement
HACTEHA [7]
Someone who is retiring has more experience on what to invest in than someone who is still getting used to knowing what to invest in  
8 0
3 years ago
Read 2 more answers
Wilson Industries holds 100 Farley Enterprises bonds. The bonds pay $4,000 interest each July and January and will mature on Jan
rosijanka [135]

Answer:

All of the electrons that enter the transport chain come from NADH and FADH 2start subscript, 2, end subscript molecules produced during earlier stages of cellular respiration: glycolysis, pyruvate oxidation, and the citric acid cycle.

Explanation:

3 0
3 years ago
Suppose a nation opened its borders to the free flow of workers from other nations. how would this event likely affect the long-
OverLord2011 [107]

Answer:

B) both curves would shift to the right.

Explanation:

The long-run aggregate supply (LRAS) curve will shift to the right because the production costs will decrease, increasing total production output and lowering prices.

The production possibilities frontier (PPF) will also shift to the right because more production output increases total supply, and that increases the production possibilities of the country.

5 0
3 years ago
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 30,000 shares authorized, 15,0
Natasha_Volkova [10]

Answer:

Dr Retained Earnings $6,000

Cr Common Dividends Payable $6,000

Explanation:

Preparation of the journal entry to record the dividend declaration

Based on the information given we were told that the Corporation declared the amount of $0.50 per share cash dividend on common shares in which 12,000 shares of the common stock are outstanding, hence The journal entry to record the dividend declaration is:

Dr Retained Earnings $6,000

Cr Common Dividends Payable $6,000

(12,000*$0.50)

5 0
3 years ago
Other questions:
  • Wich entry would record the payment of a utility bill
    15·1 answer
  • Normally, most organizational objectives can be summarized as:
    10·1 answer
  • currently, a firm has an EPS of $2.08 and a benchmark PE of 12.7. Earning are expected to grow by 3.8 percent annually. What is
    8·1 answer
  • Shauntae is 75 years old. he purchased a single life annuity contract that will pay him $3,000 per month for 10 years. the expec
    10·1 answer
  • In a competitive market, every consumer willing to pay the market price can buy a product and every producer willing to sell the
    13·1 answer
  • Free enterprise and laissez-faire economies gave the most benefits to
    11·1 answer
  • Discuss why it is important for human resource management systems to be in sync with an organization’s strategy and goals and wi
    11·1 answer
  • May I have help with question 3 pleasem
    13·1 answer
  • In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the
    14·1 answer
  • Is Trump/Biden better at being president?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!