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Sladkaya [172]
3 years ago
10

There is a bond that has a quoted price of 110.547 and a par value of $2,000. The coupon rate is 7.05 percent and the bond matur

es in 19 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
Business
1 answer:
olga55 [171]3 years ago
6 0

Answer:

the YTM of the bond is 127.55 %

Explanation:

The YTM of the bond is the Market return that similar Bond Holders expect from the bond.

This can be calculated using a Financial calculator as :

PV = - $ 110.547

FV =  $2,000

PMT =  $2,000 x 7.05 % x 1/2 = $70.50

N = 19 x 2 = 38

P/yr = 2

YTM = ???

Therefore, the YTM of the bond is 127.55 %

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assume that the price of a $1,000 zero-coupon bond with five years to maturity is $567 when the required rate of return is 12 pe
Gelneren [198K]

The price elasticity of the bond, based on the years to maturity and the required rate of return is -0.494

<h3>How to find the price elasticity of he bond?</h3><h3 />

First, find the new price of the bond:
= 1, 000 / ( 1 + 15%)⁵

= $497

The change in price:

= (497 - 567) / 567

= -12.3%

Then find the percentage change in the required rate of return:

= (15 - 12%) / 12

= 25%

The price elasticity of the bond is:

= -12.3% / 25%

= -0.494

Find out more on price elasticity at brainly.com/question/5078326

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3 0
1 year ago
Country A would have an absolute advantage compared to Country B in the production of corn if
viva [34]

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others.  A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.  

Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.

6 0
3 years ago
In​ manufacturing, excess capacity can be used to A. do fewer​ setups, lengthen production​ runs, and drive down inventory costs
Aleksandr-060686 [28]

Answer:

In​ manufacturing, excess capacity can be used todo more​ setups, shorten production​ runs, and drive down inventory costs

Explanation:

Excess capacity refers to a situation where a firm is producing at a lower scale of output than it has been designed for. Context: It exists when marginal cost is less than average cost and it is still possible to decrease average (unit) cost by producing more goods and services

7 0
3 years ago
For each example, determine how the market for the good in bolded text will respond to the described change. Due to increases in
crimeas [40]

Answer:

Explanation:

According to the law of demand,a rise in price leads to a decrease in quantity demanded and a fall in price leads to an increase in quantity demanded.

1.The price of a gallon of 2% milk has risen, therefore, quantity demanded decreases.

2.The price of laser tag has fallen,therefore,quantity demanded increases.

3.The price of dressers and desks has risen,therefore,quantity demanded decreases.

4.The price of pork shoulder has fallen from $3.99 per pound to $1.99 per pound,therefore,quantity demanded increases.

5.Another MP3 album comes free,with purchase of an MP3 album .This means the supplier have effectively halved the price.therefore,quantity demanded increases.

3 0
3 years ago
If the forecasted volume increased to 12,000 procedures and budgeted costs increased to $440,000, while all other variables rema
Alona [7]

Answer- $ 54.74

Explanation-

= ($440,000 ÷ 12,000) + [($80,000 + 4,800 ($36.67 – $38.00)) ÷ 6,000]  / (1-0.106)

= 48.936 / 0.894

= $ 54.74

Finance encompasses banking, leverage or debt, credit score, capital markets, money, investments, and the advent and oversight of financial systems. basic economic standards are based on microeconomic and macroeconomic theories.

There are two most important purposes of the finance feature: to offer the monetary records that other business features require to perform efficaciously and correctly. to assist business making plans and choice-making.

Learn more about Finance here

brainly.com/question/1279044

#SPJ4

3 0
2 years ago
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