A 7.05 percent coupon bond with 25 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,075.85. What is the yield to call of the bond? (Assume interest payments are semiannual.)

Answers

Answer 1

Answer:

Yield to call is 5.88% annually

Explanation:

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

It is assumed that face value of Bond is $1,000

C = Coupon Payment = $1,000 x 7.05% x 6/12 = $35.25

F = Face value = $1,000

P = Call price = $1,075.85

n -= number of periods to call = 8 x 2 = 16 periods

Yield to Call = [ $35.25 + ( $1,000 - $1075.85 ) / 16 ] / [ ( $1,000 + $1075.85 ) / 2 ]

Yield to Call = [ $35.25 - 4.74 ] / $1,037.925

Yield to Call = $30.51 / $1,037.925

Yield to Call = 0.0294

Yield to Call = 2.94% semiannually

YTC = 2.94% x 12/6 = 5.88% annually


Related Questions

Monica wants to sell her share of an investment to Barney for $150,000 in 6 years. If money is worth 6% compounded semiannually, what would Monica accept today?

Answers

Answer:

PV= $105,206.99

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Number of periods= 6*2= 12 semesters

Interest rate= 0.06/2= 0.03

To calculate the present value (PV), we need to use the following formula:

PV= FV/(1+i)^n

PV= 150,000 / (1.03^12)

PV= $105,206.99

A federal budget deficit can strain credit markets, forcing the real rate of interest to decrease. True False

Answers

Answer:

False

Explanation:

When the federal government has a budget deficit, it needs to borrow money to continue operating. It borrows money from the market, i.e. sells securities. This results in the crowding out effect since the funds used by the federal government cannot be used by private investors to finance private projects. Since the FED competes with private entities for available money, this with cause the real price of money, or the real interest rate, to increase.

What kind of warranty is often offered not through the manufacturer but instead through a third party? a. manufacturer’s warranty b. extended warranty c. full warranty d. limited warranty Please select the best answer from the choices provided

Answers

Answer:

The correct answer is B.

Explanation:

I just took the test, and B is correct.

An extended warranty is often offered by a third party instead of a manufacturer. The correct option is b.

What do you understand about an extended warranty?

An extended warranty or service agreement is a prolonged warranty offered to customers in addition to the standard warranty on new items. This kind of warranty can be offered by the warranty administrator, the retailer or the manufacturer.

Extended warranties cost extra and for a percentage of the item's retail price. Occasionally some extended warranties that are purchased for multiple years state in writing that during the first year the consumer must still deal with the manufacturer in the occurrence of malfunction.

There are certain terms and conditions in extended warranty which may not match the original terms and conditions. For instance, these may not cover anything other than mechanical failure from normal usage.

Some common examples of extended warranties are automobiles and electronics.

Learn more about warranty, here:

https://brainly.com/question/13821896

#SPJ6

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $27,000 per year forever. If the required return on this investment is 6.3 percent, how much will you pay for the policy? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g. 32.16.) Present value $ ________

Answers

Answer:

Present value = $428571.4286 rounded off to $428571.43

Explanation:

To determine how much should be paid for the policy today, we must calculate the present value of perpetuity. The policy returns are in the form of a perpetuity as they are paid in a constant amount after equal intervals of time and for an indefinite time period. The formula for the present value of perpetuity is,

Present value = Cash flows / r

Where,

r is the required rate of return

Present value = 27000 / 0.063

Present value = $428571.4286 rounded off to $428571.43

Which type of business constituent has titles such as President and CEO?

Answers

Answer:       s corporations

Explanation:

hope this helps.         With an S corporation that has a single shareholder, he or she can be called the president, CEO, or another title. S corporations with more than one shareholder can issue titles at the time of formation.

Blossom Company has provided you with the following sales data. September October November December Budgeted unit sales 20000 30000 50000 40000 The company requires that 5% of the next monthâs sales be on hand at the end of each month. Budgeted production for October is:_____________

Answers

Answer:

Production= 31,000

Explanation:

Giving the following information:

Sales:

October= 30,000

November= 50,000

The company requires that 5% of the next month's sales be on hand at the end of each month.

To calculate the production for October, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 30,000 + (50,000*0.05) - (30,000*0.05)

Production= 31,000

1- In 2013, Walmart decided to enter the Indian market in a joint-venture with Bharti Enterprises. Based upon your analysis of Walmartâs global expansion up to that point, do you think it was a good idea to go to India? To select joint-venture mode of entry?
2- In general, what do you think is the best way to enter a new market: acquisition, joint venture, or greenfield investment? (please compare and contrast) What is the impact on the Supply Chain? What are the location characteristics that affect this decision? What are the firm characteristics that affect this decision? What industry characteristics affect the decision?

Answers

Answer:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

Explanation:

1- Walmart wanted global expansion and it availed the opportunity to expand its business by entering Indian market, however the Indian market is far different than the US market that is why a joint-venture was required to enter the different market as Bharti Enterprises was already operating in Indian market.

2- To enter a new market Joint-venture will be suitable because:

In acquisition the investor acquires all the shares of an existing organisation in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost. In a Joint venture the investor and a local investor invests together to form a different organisation, in this method the organisations jointly own a newly formed organisation in which they both jointly decide the name and the local investor have knowledge about the local market which can be helpful if the customer taste is different than the investors market. In a Greenfield investment the investor purchases shares and bonds of an organisation already operating in the targeted market, in this way the investor will not be able to operate with the same name as in other markets as the organisation whose shares are purchased already will have a name which if changed all the goodwill will be lost.

Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:
a. Firm A: 30%
b. Firm B: 20%
c. Firms C, D, and E: 10% each
d. Firms F, G, H, and J: 5% each

Answers

Answer: four-firm concentration ratio

Explanation:   hope this helps ;)

Suppose that an MTV, American Cable Channel, open and operates a recording studio in Hungary. This is an example of:________

a. foreign direct investment.
b. foreign indirect investment.
c. foreign portfolio investment.
d. financial intermediary investment

Answers

The answer is A. Foreign direct investment

The weighted-average cost method is used by Jose, Inc. Sales are $240,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted-average cost of the goods available for sale is $600 each. How much is gross profit for the company?a. $195,000 b. $ 60,000 c. $ 30,000 d. $ 45,000

Answers

Answer:

Gross profit= $195,000

Explanation:

Giving the following information:

Sales= $240,000

Number of units sold= 75

Weighted-average cost= $600 each.

To calculate the gross profit, we need to use the following formula:

Gross profit= sales - COGS

Gross profit= 240,000 - 75*600

Gross profit= $195,000

The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as
A. economies of scale.
B. mass customization.
C. specialization.
D. None of the above.

Answers

Answer:

A. economies of scale.

Explanation:

The economies of scale is the scale where the company has the advantage of the cost that reaped by the organization in the case when there is an efficient production. It could be accomplished when the level of production or the volume of the production rises by lowering the cost

Therefore as per the given situation, the option A is correct as it fits to the current situation

Hence, the correct option is A.

During 2020, Flint Corporation reported net sales of $5,490,000 and net income of $1,320,000. Its balance sheet reported average total assets of $1,500,000. Calculate the asset turnover.

Answers

Answer:

The asset turnover is 3.66 times

Explanation:

Asset Turnover is the efficiency rate of the assets of the business to generate revenue for the business. It shows how efficiently the assets of the business are used to generate revenue for the business.

Formula for Asset turnover is as follow

Asset Turnover = Net sales / Average total assets

Asset Turnover = $5,490,000 / $1,500,000

Asset Turnover = 3.66 times

It means that the sale for the period is generated to 3.66 times of average total asset of the business.

Identify the most compelling benefits unique to social networking sites like LinkedIn from a sales representative's perspective
A. Individuals from prospect companies will voluntarily provide information about their roles and affiliations
B. Prospect companies will post press releases announcing their quarterly financial results
C. Sales reps can engage with decision makers in a non-selling environment to develop relationships and trust
D. Sales reps can Tweet the "deal of the day" to their followers to boost commissions with quick sales
E. Sales reps can reach out to individuals in prospect companies and offer them social network discounts from standard product pricing

Answers

Answer:

The most compelling benefits that is unique to social networking sites like LinkedIn from a sales representative's perspective is:

C. Sales reps can engage with decision makers in a non-selling environment to develop relationships and trust.

Explanation:

Such relationships can be carried forward to reach business deals that could not have been possible otherwise.  This is because social networking sites likes LinkedIn provide platforms for some informal interactions.  If a sales representative engages a decision maker in a non-selling environment, they can usually develop lasting trust and relationships that will ease business transactions.  The social network platform has provided the two individuals the opportunity to meet before the business deals, thereby smoothening their relationships.

The nonmoney benefits a person may receive in a job are sometimes referred to by economists as:___________.
A. nonpayment benefits
B. pecuniary benefits
C. nonpecuniary benefits
D. internal payments

Answers

Answer:

C. nonpecuniary benefits

Explanation:

Nonpecuniary benefits are also referred to as non cash benefits that are earned by employees as they occupy a particular position in a company.

Examples of nonpecuniary benefits are official car, accommodation, and schooling packages.

The non cash benefits an employee gets on a job are as important as the cash compensation they will get.

Nonpecuniary benefits go a long way in creating a conducive working environment to work.

A polisher costs $10,000 and will cost $20,000 a year to operate and maintain.If the discount rate is 10% and the polisher will last for 5 years,what is the equivalent annual cost of the tool?
A) $17,163.04
B) $22,187.84
C) $22,637.98
D) $19,411.15

Answers

Answer: $22637.98

Explanation:

Based on the information given in the question, the equivalent annual cost of the tool will be calculated as:

We first calculate the present value which will be:

= 10000 + 20000/(1+.10) + 20000/(1+.10)^2 + 20000/(1+.10)^3 + 20000/(1+.10)^4 + 20000/(1+.10)^5

= $85815.74

The the equivalent annual cost will be:

= Present Value/PVIFA(10%,5)

= 85815.74/3.7908

= $22637.98

Broad, Inc. had a beginning inventory of $50,000 and an ending inventory of $80,000. Its Cost of Goods Sold for the year was $970,000. What was the amount of purchases that it made for the year?
A. $940,000
B. $1,000,000
C. $1,050,000
D. $1,060,000

Answers

Answer:B. $1,000,000

Explanation :

Given that

beginning inventory = $50,000

Cost of Goods Sold =$970,000.

ending inventory = $80,000.

Using the formula below  to find the amount of purchases , we have that

Cost of Goods Sold  = Beginning Inventory + Purchases During the Period – Ending Inventory

$970,000 =$50,000+Purchases During the Period  -$80,000

Purchases During the Period =$970,000 -$50,000 +$80,000

Amount of Purchases During the Period for Broad, Inc.  = $ 1,000,000

The Hewitt Company has calculated that their average collection period (ACP) is 25 days. They are hoping that the new cash discounts they have implemented will reduce the ACP. After one month, they have the following data: 60% pay in 15 days and 40% pay in 30 days. How much is the change in the ACP?

a. 4 days reduced
b. 4 days increased
c. 17 days increased
d. 21 days reduced

Answers

Answer:

a. 4 days reduced

Explanation:

Calculation for How much is the change in the ACP

First step is to calculate New Collection Period

New Collection Period =( 60% * 15 Days) + (40% * 30 Days )

New Collection Period=9 Days+12 Days

New Collection Period= 21 Days

Last step is to calculate Change in ACP using this formula

Change in ACP =Current Average Collection Period -New Collection Period

Let plug in the formula

Change in ACP = 25 Days - 21 Days

Change in ACP= 4 Days (Reduced)

Therefore the change in the ACP will reduced by 4 days

Which of the following would provide you with information about the health of the U.S. economy: *

Answers

Answer:

this makes no sence!

Explanation:

_____ is the character and personality of your organization.
[A] Social media
[B] Culture
[C] Career
[D] Atmosphere

Answers

Answer:

B - Culture

Explanation:

An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding.

3) A 20 year mortgage set up for uniform monthly payments with 6 percent interest compounded monthly is taken over by a new owner after 8 years. At that time $12,000 is still owed on the principal. What was the amount of the original loan?

Answers

Answer:

Original loan = $16,344.91

Explanation:

No of monthly payments remaining at the end of 8 years = 12* 12 = 144

Monthly rate= 6%/12 = 0.5% = 0.005

Loan balance at the end of year 8 = Present value of remaining 144 monthly payments

Present value of annuity = Annuity amount * {1-(1+r)^-n}/r

$12,000 = Monthly payment * (1-1.005-144)/0.005

$12,000 = Monthly payment * 102.47474

Monthly payments = $12,000/102.47474

Monthly payments = $117.10

Original loan = Present value of 240(20 years *12) monthly payments

Original loan = $117.10*(1-1.005^-240)/0.005

Original loan = $16,344.91

A farmer is an example of what kind of producer?
A. Builder
O B. Raw-goods producer
C. Manufacturer
D. Service business

Answers

Answer:

Option B Raw goods producer

Explanation:

Raw-goods producer is the kind of producer of a farmer. Hence, option B is correct.

What is a Raw-goods producer?

A manufacturer of raw materials: Producers of raw goods are a primary source of dependency for most firms since they provide the raw materials required to create the desired final products. for instance, machinery for producing cement. They produce goods that satiate desires in subtle ways.

Producer commodities include things like a warehouse, a factory, or an office building. A service that helps the company generate more of the goods and services in its supply chain is also regarded as a producer good.

An individual who creates and provides goods or services is a producer. Factor inputs, such as labour and capital, are combined by producers to make, or transform, a product.

Thus, option B is correct.

For more details about Raw-goods producer, click here:

https://brainly.com/question/658706

#SPJ5

On January 1, 2019. A Corp purchased equipment for $20,000. The equipment had an estimated useful life of 5 years and a salvage value of $2,000. A Corp. uses the straight-line method for depreciation It A Corp sells the equipment for $13,600 on December 31 2020, it will have an:___________. (Hint: Watch the dates) a. $2,000 loss. b. $2,000 gain c. $800 gain d. $800 loss

Answers

Answer:

c. $800 gain

Explanation:

First we need to calculate the accumulated depreciation as on December 31, 2020

Accumulated depreciation = ( ( Cost - Salvage value ) / Useful Life ) x Numbers of years

Placing values in the formula

Accumulated depreciation = ( ( $20,000 - $2,000 ) / 5 year ) x ( December

31, 2020 - January 1, 2019 )

Accumulated depreciation = $3,600 x 2 years

Accumulated depreciation = $7,200

Now calculate the carrying value as on December 31, 2020

Carrying Value = Cost of asset - Accumulated Depreciation

Placing values in the formula

Carrying Value = $20,000 - $7,200 = $12,800

Now calculate the gain or loss on disposal

Gain / Loss on Disposal = Sale price - Carrying value

Placing values in the formula

Gain / Loss on Disposal = $13,600 - $12,800

Gain on Disposal = $800 Gain

Money is functioning as a medium of exchange if you:_________
a) compare book prices at the university bookstore versus online.
b) share a ride with your roommate instead of buying gas.
c) spend less this week so you'll have money for a concert next month.
d) purchase coffee at the local coffee shop before class.

Answers

Answer:

d) purchase coffee at the local coffee shop before class.

Explanation:

Money is used as a medium of exchange when buying or selling goods or services take place. Pertaining to this question, Money is functioning as a medium of exchange if you purchase coffee at the local coffee shop before class.

lauren is 17 years old. She report earned income of $3,000 and unearned income of $6,200. Is it likely that she is subject to the kidie tax? Explain.

Answers

Answer:

Following are the solution to this question:

Explanation:

Yes, at the end of the year Lauren is now under the age of eighteen but her salary is much more than $2,100, and she's eligible to its Kiddie levy. Notice that perhaps the child's net unpaid wages are a kiddie tax base. Net income that is undeserved shall be less than total salary of even an unarned infant minus $2,100 or tax payable of the child. Here, Lauren's Tax Income is measured as gross income of $9,200, minus her $3,350 = $5,850. That gross taxes unattained minus 2,100 dollars was estimated as 6.200 dollars less 2,100 dollars = 4,100 dollars taxed to use a fide and interest deduction schedule. The other $1,750 is paid 10 percent of Lauren's cost.

If a manufacturing process takes 4 hours per unit of x and 2 hours per unit of y and a maximum of 100 hours of manufacturing process time are available,then an algebraic formulation of this constraint is:_______.
A) 4x + 2y ï³ 100
B) 4x ï­ 2y ï£ 100
C) 4x + 2y ï£ 100
D) 4x ï­ 2y ï³ 100

Answers

Answer:

The algebraic formulation of the constraint is 4X+2Y ≤ 100

Explanation:

The algebraic formulation of the constraint is shown below:

Given that

The number of hours taken per unit of x is 4 hours

And the number of hours taken per unit of x is 2 hours

And, the maximum hours available is 100

Now based on the above information

The  algebraic formulation of the constraint is

= 4X+2Y ≤ 100

hence, the same is to be considered

How long do financial records remain on your credit report?


Answers

seven years!!!!!!!!!

Risk-taking and financing activities of channel intermediaries:

a, Is an important basic channel function these days.
b. Have been greatly increased over the last one hundred years.
c. Have been greatly reduced over the last one hundred years.
d. Both A and B

Answers

Answer:

c) Have been greatly reduced over the last one hundred years

Explanation:

financing activities which could be explained as the activities that involves

flow of cash when doing a business among business owner and creditors, it includes selling if stock, payment of dividend, paying back of investors and others, however in financial activities, risk taking is very crucial, when taking loan to run a business is a risk taking and other activities that may result in loss. It should be noted that Risk-taking and financing activities of channel intermediaries Have been greatly reduced over the last one hundred years

If one person's consumption of a good does not preclude another's consumption, the good is said to be: A. nonrival in consumption. B. rival in consumption. C. nonexcludable. D. excludable.

Answers

Answer:

The answer is "Option A".

Explanation:

All the commercial goods are generally competition. Non-rival products might well be purchased by one user, by comparison, while preventing concurrent usage by the others. Most – anti goods instances are abstract. TV is itself a good rival, yet Television broadcasts become non-rival goods.  

It mentioned the rival product is also something that only a single consumer can acquire or ingest. Alternatively, a good that different individuals can use or own is said to have been inconsistent.

Andrea is a stock broker. She is a member of a self-regulatory organization. This organization regulates broker deals under the guidance of SEC. Which regulating body is Andrea a part of?



A.

American Institute of Certified Public Accountants (AICPA)

B.

Financial Accounting Foundation (FAF)

C.

Financial Industry Regulatory Authority (FINRA)

D.

Governmental Accounting Standard Board (GASB)

Answers

Answer:

For edmentum its C

Explanation:

Keidis Industries will pay a dividend of $2.85, $3.95, and $5.15 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $46.00 per share. The return on similar stocks is 9.5 percent. What is the current stock price? a) $54.72 b) $45.64 c) $42.38 d) $41.82 e) $47.81

Answers

Answer:

Present value = $41.8160 rounded off to $41.82

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3  +  P4 / (1+r)^4

Where,

r is the required rate of return

Present value = 2.85 / (1+0.095)  +  3.95 / (1+0.095)^2  +    

5.15 / (1+0.095)^3  +  46 / (1+0.095)^4

Present value = $41.8160 rounded off to $41.82

Other Questions
You have -1 point after level 2 of a video game. Your score is 24 points less than your friends score. Write and solve an equation to find our friends score after level 2 Which sentence includes a word that is used incorrectly Which graph shows y = 2x -1/2 20 Points. will give brainliest.Which one doesn't belong? Read the following dictionary entry:petitionpe-ti-tion /po'tiSH(o)n/noun1. A formal, written request to an authority2. A solemn appeal to a superior3. An application to a court for a judicial actionWhich definition most closely matches the meaning of petition as it is used in paragraph five? Write the correct definition of petition here andexplain how you figured out the meaning. how does fire start what was unusual about the college when they moved there Discuss the differences expected in the IR spectra of methyl benzoate vs methyl m-nitrobenzoate. 4) Why is it important to educated thefarmers about the use of pesticides and chemical fertilizers? because of its proximity to arab lands many people in the sahel have adopted _____ Highlight the verb of each bold direct object in the sentence below . Miranda Bailey ordered a milkshake, and the artist ate a cheeseburger .Need answers ASAP I made a fort by connecting two boxes.The first box is 555 meters long, 999 meters wide, and 999 meters high.The second box is 333 meters long, 888 meters wide, and 222 meters high.How many cubic meters of space does my fort have? What is the distance between (7,0) and (-8,45) Whats parent material? Please put it in your own words not copy and paste. I'll give brainliest Which ordered pair is a solution to the system of linear equations One-half x minus three-fourths y = StartFraction 11 Over 60 EndFraction and Two-fifths x + one-sixth y = StartFraction 3 Over 10 EndFraction? (one-fifth, negative two-thirds) (one-fifth, two-thirds) (two-thirds, negative one-fifth) (two-thirds, one-fifth) Help plz idk I need help ASAP Which of the following shows 2.736 correctly rounded to the tenths place?2.7432.72.8 In Act I, Scene 4 of The Diary of Anne Frank, we notice that Anne and Peter are at a particularly awkward and delicate stage in their lives. They are not quite children, but have not fully developed into adults. You can probably relate to how they feel. In this scene, Mrs. Van Daan embarrasses Peter by calling Anne his "little girlfriend." How do you think Peter really feels toward Anne? Write about a time when an adult did or said something to embarrass you. How did you react? How was your experience simliar or different from Peter and Anne's? Your answer should be about 150 words in length. How do I Factor by grouping: pq - 10p + 8q - 80 What is the meaning of a claim in an article?