What is the yield to maturity (rounded to the nearest whole percent) of a 20 year, $100 par value bond, that pays a 10% coupon s
1 answer:
Answer:
the yield to maturity is 12%
Explanation:
The computation of the yield to maturity is as follows
Given that
Future value is $100
Present value is $85
PMT = $100 × 10% ÷ 2 = $5
NPER = 20 × 2 = 40
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in positive
After applying the above formula, the yield to maturity is
= 6% × 2
= 12%
Hence, the yield to maturity is 12%
You might be interested in
Answer:
As a result of the political unrest in Libya, the supply of oil would fall, As a result the supply curve would shift to the left. This would lead to fall in equilibrium quantity and a rise in price.
The increased demand for oil would shift the demand curve to the right. The equilibrium price and quantity would increase
Taking these two effects together, equilibrium price would rise and there would be an indeterminate effect on equilibrium quantity
Please check the attached image for a graph showing these shifts
b. As a result of the change in supply, supply would increase. This would increase equilibrium quantity and equilibrium price would fall. in addition with the increase in demand for oil, equilibrium quantity would rise and there would be an indeterminate effect on equilibrium quantity
Explanation:
Answer:
Following are the solution to the given points:
Explanation:
For point a:
After-tax profit for each country.
For Country X:
For Country Y:
For point b:
For Country X:
Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].