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viktelen [127]
3 years ago
10

You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and an 8% annual coupon. The bond has a c

urrent yield of 8.21%. What is the bond's yield to maturity?
Business
1 answer:
Luda [366]3 years ago
8 0

Answer:

Your answer is given below:

Explanation:

Information provided:

Face value= future value= $1,000

Time= 5 years

Coupon rate= 8%

Coupon payment= 0.08*1,000= $80

Current yield= 8.21%

Current yield is calculated using the below formula:

Current Yield= Annual interest/Current price

0.0821= $80/ Current price

Current price= $80/ 0.0821

                        = $974.42

The yield to maturity is calculated by entering the below in a financial calculator:

FV= 1,000

PV= -974.42

N= 5

PMT= 80

Press the CPT key and I/Y to compute the yield to maturity.

The value obtained is 8.6517.

Therefore, the yield to maturity is 8.65%.

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Monique Products, a web-based company, maintains no manufacturing facilities. As orders come in, the company contracts with othe
Sonbull [250]

Answer:

The correct answer is: a virtual corporation.

Explanation:

Virtual corporations are becoming more common with the massification of the internet and communications. They are generally companies that are dedicated to the commercialization of products and generate a massive movement in the network that allows them to be in the "voice to voice" of people. They do not have physical facilities, which saves them expenses such as leasing and public services, and the contracted staff is minimal. These companies are based on the strategy of fast and massive shipments through transport companies in order to satisfy the needs of their clients.

8 0
3 years ago
five (5) specific forces that are acting as stimulants for change, state and explain them with relevant examples.
In-s [12.5K]

Explanation:

It can be mentioned as the five specific forces that are acting as stimulators for change the forces:

  1. Competition
  2. Nature of the workforce
  3. economy
  4. Policy
  5. Technology

These are stimulating forces for change because they are factors that drive the change process so that organizational activities are able to remain and adapt in the market according to what happens in your micro and macro business environment.

Market competition is a factor that makes companies always willing to develop new methods, products and services so that they can achieve better results in the market search than competing companies. Integrated with the competition is the search for technology, which innovates the way in which techniques are developed and exists to facilitate and change work, as well as methods of using work forces.

Political and economic scenarios are also forces that drive change and the decisions that companies make in the market to seek better results and achieve their goals.

4 0
3 years ago
Required information Use the following information for the Exercises below. Skip to question [The following information applies
rosijanka [135]

Answer:

See

Explanation:

1. Break even point in units

= Fixed cost / Selling price per unit - Variable cost per unit

Given that

Fixed cost = $600,000

Selling price per unit = $375

Variable cost per unit = $300

Break even point in units = $600,000 / ($375 - $300)

= $600,000 / $75

= 8,000 units

2. Break even in sales

= Fixed cost / Selling price unit - Variable cost per unit × Selling price per unit.

=[ $600,000 / ($375 - $300) ] × $375

= 8,000 × $375

= $3,000,000

6 0
3 years ago
With 34,000 restaurants worldwide and a daily customer count of 69 million people, mcdonald's manages its product mix to generat
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Oml so much to read ...
4 0
3 years ago
On October 1, Black Company receives a 6% interest bearing note from Reese Company to settle a $20,000 account receivable. The n
Ivanshal [37]

Answer:

B. $300

Explanation:

The interest revenue is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $20,000 × 6% × (3 months ÷ 12 months)

= $300

The 6 months is calculated from October 1 to December 31

Simply we use the simple interest formula by considering the principal amount, rate of interest and time period so that the correct revenue can be computed

7 0
3 years ago
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