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GenaCL600 [577]
2 years ago
8

A bond is selling for 95% of par and has an annual coupon rate of 6% and will mature in five years. There are semi-annual coupon

payments. Calculate the yield-to-maturity on an annualized basis (APR)
Business
1 answer:
Alex2 years ago
4 0

Based on the selling price, the coupon rate, and the period, the yield to maturity will be <u>7.2%. </u>

<h3>What is the yield to maturity?</h3>

This can be found using a financial calculator or Excel worksheet.

Face value = 95% x 1,000

= $950

Coupon amount = 1,000 x 6% / 2 semi annual periods per year

= $30

Period = 5 years x 2

= 10 semi annual periods

Yield to maturity is = 3.6%

Annual yield to maturity:

= 3.6% x 2

= 7.2%

Find out more on yield to maturity at brainly.com/question/15172286.

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Which of the following is a period during which aggregate output, as measured by real GDP, declines
Klio2033 [76]

Answer:

D. Recession

Explanation:

Aggregate output in an economy declines during a recession. This is because economic activities are declining. When such occurs GDP declines. This is different from stagflation in the sense that during a recession, only real GDP declines. However, in a stagflation, the fall in GDP also results to the increase in inflation. During recessions, economic activities are low so is price level.

4 0
2 years ago
Capital market securities include all of the following EXCEPT:
Stells [14]

Answer:

The asnwer is C, Certificate of deposit.

Explanation:

In the U.S., securities are defined as contracts in which one party invests money with another and expects to make a return.

Regular bank cerificates of deposits are not regulated as securities.

Cerificates of deposits are time-deposit agreements between individuals and banks that involve a depositor committing funds to the bank for a predetermined period of time in exchange for a specified rate of interest.

3 0
4 years ago
The most important and volatile component of the current account in the U.S. balance of payments is:
astraxan [27]

Answer: net exports

Explanation:

Balance of payment simply shows the estimation of the inflows and outflow of a nation's money for a certain year. It should be noted that current account of the balance of payment consists of three main components which are the trade in Goods, the trade in services, and the transfer payments.

The trade in goods is segregated into imports and export. This therefore makes the net exports volatile and vital because it has higher share in a current account.

3 0
3 years ago
In a market economy, a high price is a signal for:___________.1. Producers to supply more and consumers to buy less. 2. Producer
shepuryov [24]

Answer: Answer is 1

Explanation:

In a market economy, a high price is a signal for producers to supply more and consumers to buy less.

3 0
3 years ago
Read 2 more answers
Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual di
Ludmilka [50]

Answer:

$28.57

Explanation:

Current price = D1/(Required return-Growth rate)

D1 (Next dividend) = $2

Required return = 10% = 0.1

Growth rate = 3% = 0.03

Current price = $2/(0.1-0.03)

Current price = $2 / 0.07

Current price = $28.57143

Current price = $28.57

Hence, i will be willing to pay $28.57 for a share of Merck stock.

8 0
3 years ago
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