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
musickatia [10]
2 years ago
15

Stein Co. issued 15-year bonds two years ago at a coupon rate of 5.4 percent. The bonds make semiannual payments. If these bonds

currently sell for 94 percent of par value, what is the annual YTM
Business
1 answer:
kherson [118]2 years ago
7 0

The annual YTM will be 3.07% if the bonds make semiannual payments and sell for 94 percent of par value.

<u>Given data</u>

Coupon rate (CR) = 5.4%

Current price (B0) = 94%

Assuming maturity value (MV) = 100%

Years to maturity (n) = 15.

<h3>What is the Annual YTM?</h3>

YTM = CR + ((MV − B0)/n) / ((MV + B0)/2)

YTM = 5.4% + (100% - 94%)/15) / (100% + 94%)/2)

YTM = 0.054 + (-0.03866666666) / 0.97

YTM = 0.01533333334 / 0.97

YTM = 0.015333 * 2

YTM = 0.030666

YTM = 3.07%

In conclusion, the annual YTM will be 3.07% if the bonds make semiannual payments and sell for 94 percent of par value.

Read more about  Annual YTM

<em>brainly.com/question/15711043</em>

You might be interested in
In a deposits-only monetary system (people hold no currency) with a 5% required reserve ratio, a bank deposit of $1,000 will inc
liraira [26]
The reserve ratio is the portion of the money of the depositor that should be available in cash in the bank. This amount should only be in the bank and not used for all other purposes. Hence, the balance money can be used for the bank operations, increasing the supply. 

In this item, we are given that the reserve ratio is only 5%. This means that, 95% of the money can be used by the bank for its operation. This amount can be calculated by multiplying the amount deposited by the decimal equivalent of 95%. That is,
          = ($1000)(0.95)
          = $950

Therefore, the money supply will increase by $950. 
5 0
3 years ago
A busy small business owner is considering purchasing groceries through a premium home delivery service because of its convenien
jok3333 [9.3K]

Answer:

A busy small business owner is considering purchasing groceries through a premium home delivery service because of its convenience. The service provides the best groceries and costs significantly more than buying groceries in the store, but home delivery is an attractive feature. Examine the

opportunity costs and trade-offs of the small business owner choosing to buy groceries through this premium home delivery service. Compare your

findings with the opportunity costs and trade-offs if the small business owner were to choose buying groceries in the store instead.

Explanation:

Can i have brainliest i've gave lot's but never get

7 0
3 years ago
In preparing a company's statement of cash flows for the most recent year, the following information is available:
Butoxors [25]

Answer:

- $ 138,000

Explanation:

The investment activities includes the transaction done on purchasing the equipment and selling the land.

Thus, for the given question

The list of investment activities:

Purchase of Equipment = - $ 149,000  

Proceeds from Sales = $ 130,000  

Purchase of Land = - $ 119,000

here, the negative sign depicts the amount is paid

thus, the net cash flow from the investment activities

= - $ 149,000 + $ 130,000 + (- $ 119,000)

or

the net cash flow from the investment activities = - $ 138,000

3 0
3 years ago
Read 2 more answers
Write a letter to your friend telling him/her about your health condition? ​
erik [133]

Answer:

Explanation:

Dear Y,                                                                                                                          

How are you? I hope you are well. I received your letter two days ago. But I could not answer in time because of my illness.

 

On last Saturday I went to school as usual. When I was returning home, it started rain. As I was in the way, there was no place to take shelter. As a result I got drenched. Soon after reaching home, I started coughing. I caught acute cold fever by night. Since then, I have been suffering from fever. Father took me to a doctor. But the doctor said that it would take at least 5 days to get cured. So, I am in bed now.  

 

No more today. Take care of you and don’t move while it’s raining. Please pay a visit to our house if possible. Waiting for your reply.

 

Your loving friend

X

4 0
2 years ago
The last data-entry clerk stealthily resigned in the middle of an overwhelmingly difficult database conversion project. Identify
slamgirl [31]

Answer:

The answer is b. Difficult.

Explanation:

The correct answer to the given question is b. Difficult. The word which describes the quality or intensity of verb is known as an adverb. The word Difficult is an adverb as it clarifies the measures the verb which is data base conversion project. Stealthiness is an adjective, the word Overwhelming is a verb and Data-Entry is also a noun.

7 1
3 years ago
Other questions:
  • Merchandise inventory at the end of the year was understated. which of the following statements correctly states the effect of t
    6·1 answer
  • American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construc
    10·1 answer
  • A canadian agent has an existing client who goes on vacation to Seattle, Washington. The agent wishes to contact the customer in
    6·1 answer
  • Once risks have been identified, how can they be managed?
    10·1 answer
  • People who go on to get a _______ are considered experts in their field.
    14·1 answer
  • Baxter Company produces​ children's wiffle ball sets using a threeminusstep sequential process that includes​ molding, coloring
    8·1 answer
  • What are some of the things that japan produces?
    11·1 answer
  • List 5 common advertising techniques.
    15·1 answer
  • Land containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for $375,000. after the o
    6·1 answer
  • Aircraft Products, a manufacturer of aircraft landing gear, makes 2,100 units each year of a special valve used in assembling on
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!