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
yKpoI14uk [10]
2 years ago
10

Ruth Lewis is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.825 percent. If these

bonds have a market price of $985.63, what yield to maturity can she expect to earn
Business
1 answer:
wel2 years ago
3 0

Answer:

The question is missing the par value of the Bond, tried searching online but i could not find it.

A Bond`s yield to maturity is the same as the Internal Rate of Return. It is the interest rate that will make the present value of cash flows equal to the price or initial investment. To calculate the Bond`s Yield to Maturity (YTM), we must have the Bond`s Par Value (this is missing), Year to Mature, Coupon Payment, Market Price.

Using a financial calculator, you enter the parameters as follows to calculate the YTM,

PV = $985.63

PMT = 5.825 % of par value

Period per year = 2

N = 3

FV = missing

YTM = ?

With just those steps and finally pressing I/YR button on your financial calculator you will get the yield to maturity that Ruth Lewis can  expect to earn.

You might be interested in
While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves
Scrat [10]

Answer:

Stocks and Bonds

Yes.  It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."

Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

4 0
2 years ago
How do you free market and planned economies differ in the allocation of factors of production
SSSSS [86.1K]

Answer:

sorr ia  am blind

Explanation:

hdnb smcjrnjnjrn

4 0
3 years ago
How much does it cost to get your ears pierced at walmart?
bazaltina [42]

Answer: 10-35 USD

Explanation:

5 0
2 years ago
Read 2 more answers
Modern corporation operates a steel mill. it has never contributed anything to the local community, and it knowingly pollutes bo
svetlana [45]

I guess the correct answer is the narrow view, or invisible hand theory .

The narrow view, or invisible hand theory, holds that producing profit is more important than being socially responsible.

5 0
3 years ago
Seven months ago, you purchased 140 shares of Mitchum Trading for $50.07 per share. The stock pays a quarterly dividend of $.17
sesenic [268]

Answer:

The answer is $47.6

Explanation:

Solution

Given that

You bought = 140 shares of  Mitchum Trading for $50.07  per share

The quarterly dividend = $.17

The current price = $51.03

So we find the total dividend income you received which is computed below:

The total dividend received = (0.17 * 2) * 140

=(0.34) * 140

= $47.6

Therefore the total dividend of income that you received is $47.6

4 0
3 years ago
Other questions:
  • Connor Corp. has large amount of data that they are trying to analyze from the last 15 years. They have an arithmetic sales grow
    10·1 answer
  • As of December 31, 2019, Armani Company’s financial records show the following items and amounts.
    11·1 answer
  • Explain the chain of cause and effect reactions since the mid-1990s that led to lower book prices for American consumers.
    5·1 answer
  • When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags.
    12·1 answer
  • Which of these represents an equilibrium price for designer jeans? The arrow pointing to D2 The intersection of P1 and Q1 The li
    9·2 answers
  • Hartley Psychiatric, Inc., needs to purchase office equipment for its 2,000 drive-in therapy centers nationwide. The total cost
    11·1 answer
  • CTSOs are especially helpful for people who are applying for which things? Check all that apply.
    15·2 answers
  • Quick assets (cash, short-term investments, and current receivables) divided by current liabilities is the: Multiple Choice Curr
    15·1 answer
  • red line railroad inc. has three regional divisions organized as profit centers. the chief executive officer (ceo) evaluates div
    10·1 answer
  • g which type of stocks will likely have the most price movement? stocks with very consistent earnings stocks with frequent chang
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!