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
Anna11 [10]
2 years ago
5

Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has a f

ace value of $2,000 and the current date is April 19, 2018. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 6 Apr 19, 2034 111.44 ?1,851 a. What is the yield to maturity of the bond?
Business
1 answer:
natulia [17]2 years ago
6 0

Answer:

YTM = 4%

Explanation:

Company (Ticker) Coupon  Maturity   Last Price    Last Yield      EST Vol (000s)

IOU (IOU)                6       Apr 19, 2034  111.44              ?                     1,851

<u />

<u>Determine the yield to maturity </u>

YTM = Rate * 2

years to maturity = 2034 - 2018 = 16 years

NPER = 2 * 16 = 32

PMT = ( face value * coupon rate ) / 2 = ( 2000 * 6% ) / 2 = 60

price of coupon ( PV ) = 2000 * 111.44% = 2228.8

Rate = 2% ( excel function : RATE(32,60,-2228.8,2000)

hence YTM = 2% * 2 = 4%

You might be interested in
Trends established by your competition can provide you with an advantage <br> A. True<br> B. False
Alexus [3.1K]

False, cuz cuz cuz cuz cuz


6 0
3 years ago
Read 2 more answers
State the following statement is True or False, and explain why. Thor who lives in Montana purchased a car produced in Japan for
Likurg_2 [28]

Answer:

false

His purchase left GDP unchanged

Consumption of non durables would increase.

Also, net export would decrease.

these effects would cancel out

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

3 0
3 years ago
A plant asset was purchased on January 1 for $140000 with an estimated salvage value of $20000 at the end of its useful life. Th
alukav5142 [94]

Answer:

useful life= 12 years

Explanation:

Giving the following information:

Purchase price= $140,000

Salvage value= $20,000

Annual depreciation= $10,000

<u>To calculate the useful life, we need to use the straight-line method formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

10,000= (140,00 - 20,000) / useful life

10,000useful life = 120,000

useful life= 120,000 / 10,000

useful life= 12 years

4 0
3 years ago
DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100
Talja [164]

Answer: add this flight because marginal revenue exceeds marginal costs.

Explanation:

Since the total cost of the flight would be $1,100, of which $800 are fixed costs already incurred, then the variable cost in this case will be )$1100 - $800) = $300.

Since the expected revenues from the flight are $600, thus implies that the total revenue exceeds total variable cost and therefore Dash should add the flight because total revenue is more than total variable cost and the marginal revenue exceeds marginal costs.

7 0
3 years ago
Khái niệm giao tiếp trong tổ chức
Delvig [45]

Answer:

bu kin jhu

Explanation:

John jvghh bugs HHH jhu UV juggle

6 0
3 years ago
Other questions:
  • Your company issues $50,000 of one-year, 10% bonds at face value. The journal entry to record this transaction will include a de
    9·1 answer
  • Beginning stockholders' equity was $120,000. Ending stockholders' equity was $195,000. Additional issuances of capital stock dur
    14·1 answer
  • Name the departments, offices, or agencies that were created by the Dodd -F
    8·1 answer
  • Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its ave
    10·1 answer
  • Sam is getting his bachelor's degree. During some of his course work, he honed his research skills and learned to
    13·2 answers
  • Thirty-two new employees from Market Enterprises are attending orientation, receiving information about company policies, and fi
    13·1 answer
  • A small clothing firm currently produces 50,000 shirts and blouses per month. The cost of its factory, raw materials, and labor
    11·1 answer
  • Energy Drink, Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To underst
    8·1 answer
  • The following information is available for the pension plan of Swifty Company for the year 2020.
    8·1 answer
  • How does the cost of doing business affect prices?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!