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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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An effective price ceiling is imposed in a market. This leads to the development of an illegal black market for the product. How
horsena [70]

Answer:

The price on the black market tends to be higher.

Explanation:

When price ceilings are placed in legal markets, buyers are able to get goods and services at lower prices. But sellers may not be willing to sell unlimited supply of goods at the low price. This could lead to artificial scarcity, and formation of black markets.

The main aim of black markets is for suppliers to maximise profits, so a supplier is able to sell his goods at an amount above the price ceiling set in the legal market.

Also black markets are characterised by practices such as tax evasion, which are beneficial to the suppliers.

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Why do starbucks customer at busy downtown locations in major cities pay more for a cup of coffee than they would at less busy l
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Hey You! Here's The Answer:

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When a customer deposits $100 of cash into their checking account at a bank, the cash outside the bank decreases by $100, but th
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3 years ago
What is considered sin tax?
gayaneshka [121]

Definition:

Tax imposed by the government on the things which are harmful for the human health is termed as Sin Tax. For example, Tobacco products, drugs, cola drinks, gambling, fast food items etc.

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7 0
3 years ago
1) Nelson Company began operations on December 1, Year 1. The following transactions and adjustments were recorded in December a
Levart [38]

The total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1 is B) $9,000

Nelson Company Adjusted trial balance at December 31, Year 1

Debit side

Cash  $3,600

($3,800+$1,700-$1,900)

Account Receiveble $1,600

($3,300-$1,700)

Supplies $500

Land $1,900

Salaries expenses  $1,400

Total debit balance $9,000

Credit side

Account payable $500

Salaries payable $1,400

Common stock $3,800

Service revenue $3,300

Total Credit balance $9,000

Inconclusion The total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1 is B) $9,000

Learn more here:

brainly.com/question/15104337

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