Answer:
Yield to call (YTC) = 7.64%
Explanation:
Yield to call (YTC) = {coupon + [(call price - market price)/n]} / [(call price + market price)/2]
YTC = {135 + [(1,050 - 1,280)/5]} / [(1,050 + 1,280)/2]
YTC = 89 / 1,165 = 0.07639 = 7.64%
Yield to call is how much a bondholder will earn if the bond is actually called, and it may differ from yield to maturity since the call price is generally higher than the face value, but the yield to maturity generally is longer than the call period.
We
should note that the bond investment account is recorded at cost by the Bondholder
or Investor.
The
cost or price is calculated as:
Cost
= $90,000 * 86.4%
Cost
= $90,000 * 0.864 = $77,760
Therefore,
the entry to record should be:
<span>debit
Held-to-Maturity Investment in Bonds for $77,760 and credit Cash for $77,760</span>
Yes, because Ray investing in two different saving bonds is basically diversification.
The makers of UAV drones have good reason to sell their drone models to buyers in the Asia- Pacific at lower average website prices than the average website prices charged to buyers in the Europe-Africa region because they incur higher import duties on shipments of UAV drones to buyers in Europe-Africa than they do on each drone shipped to buyers in the Asia-Pacific region.
The costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV drones from Taiwan to Europe-Africa.
The production/assembly costs per drone that drone-makers incur on all UAV drones shipped to the Asia-Pacific region are many dollars higher than production/assembly costs per drone shipped to buyers in the Europe-Africa region.
The administrative costs per UAV drone sold that companies incur on sales to buyers in the Asia- Pacific region are about $10 higher than those incurred on sales to buyers in the Europe- Africa region.
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