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
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

You might be interested in
. Seven cards each have a positive integer printed
Amiraneli [1.4K]
This is a probability question
4 0
3 years ago
A shipment of frozen fish arrives at your food establishment. you see that the outside bottoms of the shipping cartons have too
Lena [83]
<span>Excess browning at the edges, ice formation at the bottoms of the containers, and are indicators of thawing and refreezing. While in standard at-home practice of refreezing thawed fish is acceptable, it is not during shipping because it is impossible to tell how long the fish were kept out of a cold environment and may transmit disease (plus, visible damage to the fish decreases salability).</span>
8 0
3 years ago
Read 2 more answers
Interest is defined as
maks197457 [2]

Answer:

in·ter·est

/ˈint(ə)rəst/

Learn to pronounce

See definitions in:

All

Commerce

Law

noun

1.

the state of wanting to know or learn about something or someone.

"she looked about her with interest"

Similar:

attentiveness

undivided attention

absorption

engrossment

heed

regard

notice

scrutiny

curiosity

inquisitiveness

enjoyment

delight

Opposite:

boredom

2.

money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

"the monthly rate of interest"

Similar:

dividends

profits

returns

a percentage

Explanation:

3 0
3 years ago
Read 2 more answers
wo firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution an
almond37 [142]

Answer:

Firm A will buy all of the firm B's pollution permits. Each one will cost between $100 and $200.

Explanation:

The firm B will gain from the trade of pollution permits. Firm A will need higher pollution permits since it emits 100 tons of chemicals into air and the cost for eliminating each ton is $200. This cost is higher than the cost to Firm B which is $100 only. Firm A will buy all the pollution permits from Firm B and there will advantage for the Firm B to gain from the trade.

3 0
3 years ago
Express Meals is a local bistro that has budgeted inventory purchases as follows: September: $ 300,000 October: $ 350,000 Novemb
ziro4ka [17]

Answer:

Express Meals

The budgeted accounts payable balance on November 30 is:

= $347,000.

Explanation:

a) Data and Calculations:

Budgeted inventory purchases:

September: $ 300,000

October: $ 350,000

November: $ 390,000

Payment to suppliers:

Month of purchase = 20%

Month following purchase = 70%

Two months after purchase = 10%

                                                   September    October   November  Total

Purchase                                     $300,000   $350,000    $390,000 $1,040,000

Payments:

Month of purchase  (20%)             60,000        70,000         78,000  $208,000

Month following purchase (70%)                     210,000      245,000  $455,000

Two months after purchase (10%)                                         30,000  $30,000

Total payments                             60,000      280,000      353,000  $693,000

Outstanding balance ($1,040,000 - $693,000) = $347,000

6 0
2 years ago
Other questions:
  • Gvb inc., a consulting firm, hires zainab, who is a muslim. in order to avoid discriminating against zainab based on her religio
    14·1 answer
  • Shanice is a new project manager working with a preexisting team that has resisted many of the new policies she has put into pla
    15·1 answer
  • Some years ago, chemists at 3M Corporation were trying to create a super-strong glue. Somehow they got their molecules twisted a
    14·1 answer
  • You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve
    7·1 answer
  • Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $13.00
    7·1 answer
  • If current market interest rates rise, what will happen to the value of outstanding bonds?
    7·1 answer
  • Time Remaining 1 hour 48 minutes 56 seconds01:48:56 Item 5Item 5 Time Remaining 1 hour 48 minutes 56 seconds01:48:56 Accounts pa
    5·1 answer
  • A customer who sold a bond at a loss must wait how long before he can buy back a substantially identical bond and not have the s
    15·1 answer
  • The total payroll of Trolley Company for the month of October, 2014 was $800,000, of which $150,000 represented amounts paid in
    9·1 answer
  • Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!