Answer:
current yield 8.2089552%
YTM = 8.05%
effective annual yield = 4.92%
Explanation:
(A)
current yield = C/P
coupon payment / market price
8.8/107.2 = 0.082089552 = 8.2089552%
(B)

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.
market price 107.2
face value 100
time = 19
rate 8.8%
C = annual coupon payment 100 x 8.8% = 8.8
You solve this using a financial calculation and get the semiannual rate
YTM/2 = 0.040268160
then multiply by 2 to get the annual YTM
0.040268160 x 2 =
YTM = 0.08053632 = 8.05%
(C)
Effective Annual Yield

where:
Holding period return:

In this case:
coupon payment + redem - investment = net return
8.8 * 19 + 100 - 107.2 = 160
160/107.2 = 1.492537313
Then


EAY = 0.049242509 = 4.9242509%
Answer:
1. Current bonds price = $81.86.
2. Yield to maturity = 22.16%.
3. 3. Expected Return = 7.5%.
Explanation:
Required Rate = Rf + beta*MRP
= 5% + 0.25*(15% - 5%)
= 5% +0.25*10%
= 5% + 2.5% = 7.5%
Required Rate = 7.5%
Expected Future Value = 70% x $100 + 30% x $60
= (0.7*$100) + (0.3*$60)
= $(70+18) = $88
Expected Future Value = $88
1. Current bonds price = 88/1.075 = $81.86
2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%
3. Expected Return = 7.5%
Answer:
Stop assuming then....hehe haha don't know ur previous ques and too lazy to open it and even too lazy to read it full sorry
<u>Solution and Explanation:</u>
<u>Computation of service years
</u>
Year Jim Paul Nancy Dave Kathy Total * Cost Amortization
2014 1 1 1 1 1 5 * 3000 15000
2015 1 1 1 1 1 5 * 3000 15000
2016 1 1 1 1 1 5 * 3000 15000
2017 1 1 1 1 4 * 3000 12000
2018 1 1 1 3 * 3000 9000
2019 1 1 2 * 3000 6000
72000
<u>Future years of service </u>
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
24

Pierre engaging in such actions is known as rationalizing.
When a person rationalizes a decision they:
- <em>T</em><em>ry to prove that what they did isn't bad </em>
- <em>C</em><em>ome up with some sort of reasoning to support their decision </em>
Pierre is clearly doing something wrong here by increasing expenses more than they are supposed to be. He however convinces himself that what he is doing is not bad because no one will notice.
He is therefore coming up with reasons to prove that what he is doing is not bad and we can conclude based on this fact that he is engaged in rationalizing his behavior.
<em>Find out more at brainly.com/question/14453354.</em>