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
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%.

You might be interested in
An organization that has all its people in one location is typically ________ than an organization that is dispersed around the
Vera_Pavlovna [14]

Answer:

less spatially complex is the answer.

7 0
8 months ago
Cutting taxes
gladu [14]

Answer:

The answer is D) will raise disposable income and raise spending

Explanation:

When taxes are cut disposable income increases as there is less income used to pay taxes. If there is a higher amount of disposable income available then spending will increase as well as spending appetite.

Cutting taxes is a easy way to stimulate spending in an economy.

The correct answer is therefore D) will raise disposable income and raise spending.

Cutting taxes can also increase aggregate demand which can lead to higher economic growth as well.

8 0
2 years ago
Read 2 more answers
Which of the following is true about organizational change?
Pavel [41]

Change occurs more informally through social networks is  is true about organizational change, so option (d) is correct.

In terms of organisational change, which of the following is accurate?

Change agents perform best when they take the initiative in isolation.

b. The success of organisational change in the public sector is most heavily influenced by groups of people who are committed to the change to varying degrees.

b. The executive team constitutes the only guiding coalitions for organisational change.

d. Social networks facilitate change in a more casual manner.

e. Organizations should avoid adopting viral change,

One who is alone is said to be in isolation or seclusion. One's customary friends may be cut off from them by choice or circumstance, or isolation may refer to a state of being apart from all other people. A few peaceful hours of seclusion and isolation highlight the tendency to unintentionally distance oneself from others.

To know more about social networks   CLICK HERE

brainly.com/question/14312767

#SPJ4

8 0
1 year ago
Lakeside Inc. produces a product that currently sells for $64.80 per unit. Current production costs per unit include direct mate
iren [92.7K]

Answer:

a. Incremental costs = (Direct materials + Direct labor) * 20%

Incremental costs = ($26 + $28) * 20%

Incremental costs = $54 * 20%

Incremental costs = $10.8

Incremental selling price = $72 - $64.8 = $7.2

Incremental profit (loss) = Incremental selling price - Incremental costs = $7.2 - $10.8 = $(3.6)

b. No. As there is Incremental loss, it should not be processed further

5 0
2 years ago
Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are pai
cluponka [151]

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

3 0
3 years ago
Other questions:
  • Dividing a stock's current price per share by the issuing company's earnings per share results in
    15·2 answers
  • Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000 and falls into t
    15·1 answer
  • The Doak Company has projected the following quarterly sales amounts for the coming year:
    5·1 answer
  • Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at Burton realize that human capital plays
    11·1 answer
  • Sally is a cash basis taxpayer and a member of the Valley Barter club. This year Sally provided 100 hours of sewing services to
    12·1 answer
  • Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:Project Soup P
    15·1 answer
  • Which document establishes an initial record of the receipt of the inventory? petty cash voucher purchase order vendor's invoice
    14·1 answer
  • Match each type of savings account with its features. members own it interest rate rises and falls with the market minimal overh
    13·2 answers
  • A company that owns companies that are in a different industry and performs
    13·1 answer
  • Can a person work as an agent for two different people with conflicting interests?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!