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mestny [16]
3 years ago
14

A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivale

nt and effective annual yield to maturity of the bond if the bond price is $950.
Business
1 answer:
kipiarov [429]3 years ago
7 0

Answer:

The answer is 4.26 percent

Explanation:

This is a semiannual paying coupon.

N(Number of periods) = 40 periods ( 20 years x 2)

I/Y(Yield to maturity) = ???

PV(present value or market price) = $950

PMT( coupon payment) = $40 ( [8 percent÷ 2] x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 40; PMT = 40; FV= $1,000; PV= -950 CPT I/Y = 4.26

Therefore, the bond's yield-to-maturity is 4.26 percent

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Voiles Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for
Naddika [18.5K]

Answer:

The correct option is A,A. 7,000 = NA + 2,000 - (5,000) NA - NA = NA 7.000 FA

Explanation:

By issuing the treasury stock ,asset,cash to be precise increases by $7000($35*200) which implies a debit to the asset ,hence the $7000 seen on the left hand-side of the equation.

This transaction has no liability impact,as a result liabilities is denoted NA,not applicable.

The par value of the treasury is to be credited to treasury stock with $5,000($25*200).

Lastly the difference between the par value and the issue is credited to paid-in capital from treasury stock i.e($35-$25)*200))=$2000,this is depicted by $2000 in the equation

5 0
3 years ago
If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium tha
Pachacha [2.7K]

Answer:

(a) 5

(b) $150 million

(c) 45 million

Explanation:

(a) Multiplier = 1 ÷ (1 - MPC )

                     = 1 ÷ (1 - 0.8 )

                     = 1 ÷ 0.2

                     = 5 ⇒ the value of the simple multiplier is 5.

b) If the autonomous expenditure is increased by $30 million then the total output will increase by:

= $30 million × 5

= $150 million

c) If the Marginal propensity to import is 0.3 then the import will increase by:

= 150 × 0.3

= 45 million

6 0
3 years ago
Playwrights that have been quoted as serving as the initial director of their work are
Scorpion4ik [409]
Among the novelists, these are the those that served the initial director of their work: Samuel B<span>eckett, Bertolt Brecht, David Mamet, </span><span>George Bernard </span><span>Shaw</span>, Sam Shepard and the most famous novelist, William Shakespeare. After Shakespeare's time, playwrights are already considered as independent artists.
6 0
3 years ago
An exploration of the factors underlying an​ economy's capital stock and its level of technology indicates that the relevant tim
scoray [572]

Answer:

The correct answer are: A. quality of its education system. B. saving rate. and E. role of the government.

Explanation:

The stock of capital is a fundamental variable in economic analysis, especially for economic growth studies. The level of capital stock, together with measurements of labor (labor), constitute the factors that allow analyzing the production function of an economy; as well as determine the long-term growth patterns of it.

5 0
3 years ago
An advantage of using the nominal group technique of group decision making is thata) People can participate as they wishb) Peopl
Katen [24]

Answer:

Letter c is correct. <u>It encourages participation from everyone.</u>

Explanation:

People are encouraged to participate in a nominal group technique because it is comprehensive to all participants.

This technique consists of creating group dynamics where each member can express their opinion about what is being proposed by voting, independently and silently, which consequently encourages the breakdown of shyness and reduces the pressure on the participant. This technique has positive effects by balancing the participation of all people and by motivating the group's sense of belonging and effectiveness.

8 0
3 years ago
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