West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?

Answers

Answer 1

Answer:

7.44 %

Explanation:

The Yield to Maturity (YTM) is the Interest rate that makes the Present Value of Coupons and Principle equal the Market Price or Current Price of the Bond.

The Yield to Maturity can be calculated using a financial calculator as follows :

PV = - $100

N = (15 -2) × 2 = 26

PMT = ($100 ×  7.30%) ÷ 2 = $3.65

FV = $103

P/YR = 2

YTM = ?

Therefore, Inputting the values in the calculator as shown gives the Yield to Maturity is 7.44 %.


Related Questions

A stock has had returns of 16 percent, 23 percent, 15 percent, −11 percent, 30 percent, and −5 percent over the last six years.What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic return % Geometric return %

Answers

Answer and Explanation:

The computation of the arithmetic and geometric return for the stock is shown below:

Arithmetic return is

= (16% + 23% + 15% - 11% + 30% - 5%) ÷ 6

= 11.33%

And,

Geometric return is

= ((1 + 16%) × (1 + 23%) × (1 + 15%) × (1 - 11%) × (1 + 30%) × (1 - 5%))^(1 ÷ 6) - 1

= 10.33%

The same is to be considered

Noma plans to save $3,400 per year for the next 35 years. If she can earn an annual interest rate of 9.2 percent, how much will she have in 35 years? a) $716,300.24 b) $119,000.00c) $767,464.54 d) $83807128 e) $734,09652

Answers

Answer:

c) $767,464.54

Explanation:

The computation of the future value of an annuity is shown below:

As we know that

Future value of annuity F =  Payment made × ((1 + rate of interest)^t - 1) ÷ r ate of interest

= $3,400 × (1.092^35 - 1) ÷ 0.092

= $3,400 × 225.7249

= $767,464.54

Hence, the future value of an annuity is $767,464.54

Therefore the correct option is c.

Advantages of large group communication ?

Answers

Answer:

1: Increased output: The first and most important advantage of group work is, that it increases total productivity

2: More resources :The more member you have in a group, the resources you have at the end of the day...

3: Reliability: Project are safer with team than with individual.

4: proper decision making

5:Exposure to diversity.

Answer:

andvatage whem itsits when couple enoustryied withcouple walangjowa ble

Explanation:

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Inter-Personal Intelligence is:
a) The sensitivity to tackle deep questions about human existence, such as the meaning of life, how we got here, and why we die.
b) By the capacity to detect and respond appropriately to the moods, motivations, and desires of others.
c) The well-developed language skills; sensitivity to the meetings and effects of words.

Answers

Answer:

on my view its c for sure

What type of research is being used when gathering data from structured survey responses that are numerical in nature?A. Qualitative.
B. Observational.
C. Quantitative.
D. Secondary.
E. Tertiary.

Answers

Answer:

C. Quantitative.

Explanation:

Here in the question it is mentioned that the research type which is used at the time when the data is gathered from structured survey that response and are in the numerical so here the numerical means the data which can be count and we called as a quantitative

Therefore the option C is correct

hence, the same is to be considered

Discuss about Financial System and its impact on the strategic Financial Management

Answers

Answer:

The modern Financial System is based on a central bank that controls the monetary base (but not the money supply), and in fractional reserve banking. The implicaton of this, is that banks loan out some of the money that they obtain as deposits, and in this process they create money.

Explanation:

The Financial System is influenced by this process of money creation, because when the money that circulates in the economy (the money supply) changes, interest rates also change.

Interest rates are the price of investment, and the most important indicator that a financial manager has to take into account when making a financing decision.

Financial managers must also take into account the different types of financial institutions that exist, from hedge funds, to commercial banks, to cooperatives, and the different types of securities, from stocks, to bonds, to derivatives and futures.

Goodwill is: Group of answer choices Amortized over the greater of its estimated life or forty years. Only recorded by the seller of a business. The excess of the fair value of the consideration exchanged for the company over the fair value of net assets acquired. None of these.

Answers

Explanation:

Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable. Goodwill does not include identifiable assets that are capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability regardless of whether the entity intends to do so. Goodwill also does not include contractual or other legal rights regardless of whether those are transferable or separable from the entity or other rights and obligations. Goodwill is also only acquired through an acquisition; it cannot be self-created. Examples of identifiable assets that are goodwill include a company’s brand name, customer relationships, artistic intangible assets, and any patents or proprietary technology. The goodwill amounts to the excess of the "purchase consideration" (the money paid to purchase the asset or business) over the net value of the assets minus liabilities. It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched. Under US GAAP and IFRS, goodwill is never amortized, because it is considered to have an indefinite useful life. Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market value goes below historical cost (what goodwill was purchased for), an impairment must be recorded to bring it down to its fair market value. However, an increase in the fair market value would not be accounted for in the financial statements. Private companies in the United States, however, may elect to amortize goodwill over a period of ten years or less under an accounting alternative from the Private Company Council of the FASB.

A disadvantage of bond financing is: Multiple Choice Bonds pay periodic interest and the repayment of par value at maturity. It allows firms to trade on the equity. Bonds do not affect owners' control. Interest on bonds is tax deductible. Bonds can increase return on equity.

Answers

Answer:

Bonds pay periodic interest and the repayment of par value at maturity.

Explanation:

The main disadvantages that businesses face when issuing bonds are:

bonds pay coupons either semiannually or annually, and the company needs to have the money to pay thembonds increase the risk of insolvency, AKA bankruptcy, which increases the cost of equitysince bonds require interest payments (coupons), they can potentially decrease return on equity

RedEx Shipping determined the rate to apply overhead based on direct labor hours would be $5.40, and based on machine hours would be $4.20. Job 664 used $26.00 of direct materials, 2.5 machine hours, and 4 hours of direct labor at a cost of $14 per hour. How much is the manufacturing cost of job 664 if RedEx Shipping applies overhead based on machine hours?

a. $92.50
b. $10.50
c. $21.60
d. $103.60

Answers

Answer:

Manufacturing cost= $92.5

Explanation:

Giving the following information:

Predetermined overhead rate= $4.2 per machine hour

Job 664:

2.5 machine hours

$26.00 of direct materials

4 hours of direct labor for $14 per hour.

To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4.2*2.5= $10.5

Now, the manufacturing cost:

Manufacturing cost= 10.5 + 26 + 4*14

Manufacturing cost= $92.5

Southwest U's campus book store sells course packs for $15 each, the variable cost per pack is $10, fixed costs to produce the packs are $200,000, and expected annual sales are 50,000 What are the pre-tax profits from sales of course packs?A. $72,900.B. $81,000.C. $90,000.
D. $100,000.
E. $110,000.

Answers

Answer:

Pre-tax income= $50,000

Explanation:

Giving the following information:

Selling price per unit=$15 each

Unitary variable cost= $10

Fixed costs= $200,000

Sales in units= 50,000

First, we will determine the unitary contribution margin:

Unitary contribution margin= 15 - 10= $5

Now, the pre-tax income:

Pre-tax income= 50,000*5 - 200,000

Pre-tax income= $50,000

A person is considered an entrepreneur because she?

Answers

The answer must be 3

A person is considered an entrepreneur because she combined resources to create new products. Thus, option (c) is correct.

A person who starts a new firm, taking on the majority of the risks and reaping the majority of the gains, is an entrepreneur. Entrepreneurship is the practice of starting a business.

Every economy requires entrepreneurs because they have the knowledge and drive to foresee demands and promote novel ideas. Entrepreneurship that succeeds in assuming the risks involved in founding a firm is rewarded with earnings and expansion possibilities.

Therefore, option (c) is correct.

Learn more about on entrepreneur, here:

https://brainly.com/question/31010585

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Common problems being faced by internet users with having an online business

Answers

Answer:

businesses are facing issues for a number of reasons. one of which is that websites may crash with a large amount of users on a website at any given period.

Explanation:

Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute the net tax payment or savings if you sell the equipment for $271,400.

Answers

Answer: Savings on taxes of -$50,008‬

Explanation:

Book Value = $450,000

Selling Price = $271,400

Book Value is more than selling price so there is a Capital loss.

Capital gains tax will therefore become a tax saving of;

= 28% * (271,400 - 450,000)

= ‭-$50,008‬

You own a movie theater. The theater generates $100,000 per year in net income. This is expected to grow at 2% per year. Someone offers to buy the theater from you. How much should you charge as the selling price of the theater?

Answers

Answer: $1275000

Explanation:

From the question, we are informed that a theater generates $100,000 per year in net income and it is expected to grow at 2% per year.

The selling price of the theater if someone offers to buy will be:

= net income × (1+g) / (r-g)

= $100,000 × (1 + 2%) / (10% - 2%)

= $100,000 × (1.02) / (0.08)

= $1275000

The amount of money which the theater owner should charge as the selling price of the theater is:

$1275000

According to the given question, we are asked to calculate the selling price of a movie theater, when we factor in the net  income, expected growth, etc.

As a result of this, we can see that to make the necessary calculations, we have to take note of some important things such as:

Net income

Expected growth rate

The net income is $100, 000 per year

The expected growth rate is 2% per year

With this in mind, the owner can calculate the selling price as net income × (1+g) / (r-g) which would give us $100,000 x 91.02)/ (0.08)

= $1275000

Therefore, the correct answer is $1275000

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Joe's Mart policy is to have 20% of the next month's sales on hand at the end of the current month. Projected sales for August, September, and October are 36,000 units, 31,000 units, and 41,000 units, respectively. How many units must be purchased in September?A. 16,000.B. 17,000.C. 22,000.D. 26,000.E. 28,000.

Answers

Answer:

the number of units purchased in September is 33,000 units

Explanation:

The computation of the number of units purchased in September is shown below:

= September sales + desired ending inventory - beginning inventory

= 31,000 + 41,000 × 20% - 31,000 × 20%

= 31,000 + 8,200 - 6,200

= 33,000 units

This is the answer but the same is not provided in the given options

hence, the number of units purchased in September is 33,000 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Calculate the federal income tax liability of a worker who earned $522,503 in 2019, and who takes the standard deduction of $12,200. Keep in mind that calculations of federal income tax drop any numbers after the decimal point.

Answers

Answer:

Tax liability = $157,611 (Approx)

Explanation:

Taxable Income = Gross Income – Standard Deduction

Taxable Income = $522,503 - $12,200

Taxable Income = $510,303

Calculation of tax liability:

Tax liability = ($9,700 x 10%) + [($39,475 - $9700) x 12%] + [($84,200 - $39,475) x 22%] + [($160,725 - $84,200) x 24%] + [($204,100 - $160,725) x 32%] + [($510,300 - $204,100) x 35%] + [($510,303 - $500,000) x 37%]

Tax liability = $157,611 (Approx)

An indifference curve shows the various bundles of goods that:_________ A. all cost the same amount of money. B. make the consumer equally happy. C. can be purchased on the open market. D. are overpriced.

Answers

Answer:

B. make the consumer equally happy.

Explanation:

An indifference curve can be defined as the graphical representation of two products (commodities) that gives a customer equal utility and satisfaction and as such making him or her indifferent about them as they are equally happy.

Hence, an indifference curve shows the various bundles of goods that make the consumer equally happy.

entrepreneur development is the key to​

Answers

Explanation:

Entrepreneurial development is the key to achieve all-round industrial and entrepreneurial activities.

Earnings of workers are typically decreased by

Answers

It’s typically decreases by the amount of other workers.

The vast improvement in communications technology and globalization has caused the degree of competition many local retail businesses face to ___________.

a. fluctuate drastically
b. increase
c. decrease
d. stay the same

Answers

Answer:

b. increase

Explanation:

These changes have caused competition to greatly increase. This is mainly because with these changes anyone from around the world can provide the same services/products that a local retail business can provide while reaching customers from all over the world. Therefore, also competing with any retail brick-and-mortar business from any part of the world. Customers can easily communicate with these online businesses and purchase their products/services from the comfort of their homes and usually at a much better price.

In the __________________ manufacturing environment, order acceptance occurs before the production lead time. Fill in the blanks.

Answers

Answer:

Make to order (MTO)

Explanation:

A Make to order (MTO) can be defined as a manufacturing technique which typically involves the production of goods only when an order has been placed by a customer. Thus, no product would be manufactured under this production technique or approach until a confirm order is received.

In the Make to order (MTO) manufacturing environment, order acceptance occurs before the production lead time.

The price of TSC stock will be either $42 or $46 at the end of the year. Currently, T-bills yield 4.1 percent and TSC sells for $43 a share. What is the per share value of a one-year TSC call option if the exercise price is $45 per share?

a. $1.03
b. $.66
c. $.72
d. $.81
e. $0

Answers

Answer:

b. $.66

Explanation:

The computation of the per share value for the one year is

Given that

Current Price = $43

Possible Prices = $42 and $46

Now

u = [($46 - $43) ÷ $43] + 1

= 1.06977

And

d = 1 - [($42 - $43) ÷ $43]

= 0.9767

And,

Risk-Free Rate = T-Bill Rate = Rf = 4.1 %

Now the up move price probability is

= [(1 + Rf) - d] ÷ [u - d]

= [(1.041) - 0.9767] ÷ [1.06977 - 0.9767]

= 0.69088

And,  

Exercise Price = $ 45

Now

If the Price is $42, so Payoff = $0

And

if the Price is $46, so Payoff =is

= ($46 - $45)

= $1

Finally the call price is

= [0.69088 × 1 + (1 - 0.69088) × 0] ÷ 1.041

= $0.66367

= $0.66

At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $16,000. Instructions Journalize and post the adjusting entry for bad debts at December 31, 2020. Journalize and post to the allowance account the following events and transactions in the year 2020. March 1, a $1,900 customer balance originating in 2020 is judged uncollectible. May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1. Journalize the adjusting entry for bad debts on December 31, 2020. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $2,000, and the aging schedule indicates that total estimated bad debts will be $38,300.

Answers

Answer:

a. Journal Entry

Date     Account Titles            Debit            Credit

Dec 31  Bad Debts Expense  $16,000

            Allowance for Doubtful Accounts $16,000

To record bad debts expense.

b. Journal Entries:

Date     Account Titles            Debit            Credit

Mar 1   Allowance for

           Doubtful Accounts    $1,900

            Accounts Receivable                     $1,900

To record the write-off of uncollectible account.

Date     Account Titles              Debit            Credit

May 1    Accounts Receivable $1,900

             Allowance for Doubtful Accounts  $1,900

To record the reversal of the March 1, 2020 entries.

Date     Account Titles            Debit            Credit

May 1   Cash                           $1,900

             Accounts Receivable                    $1,900

To record the receipt of check from the customer.

c. Journal Entries:

Date      Account Titles              Debit            Credit

Dec. 31  Bad Debts Expense $40,300

             Allowance for Doubtful Accounts $40,300

To record bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $38,300.

Explanation:

a) Adjusting journal entries are necessary to ensure that the accounts are reported in accordance with the accrual concept.

When preparing the financial analysis for a business plan, the required statements and schedules will depend on the:

Answers

Complete Question:

When preparing the financial analysis for a business plan, the required statements and schedules will depend on the:

Group of answer choices

A. size of the particular project.

B. plan's presentation procedure that is expected in your own organization.

C. project's complexity.

D. All of these are correct.

Answer:

D. All of these are correct.

Explanation:

Financial analysis can be defined as the process of analyzing the stability, profitability, accuracy and viability of a business entity through its financial statements.

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

Hence, when preparing the financial analysis for a business plan, the required statements and schedules will depend on the following;

A. size of the particular project.

B. plan's presentation procedure that is expected in your own organization.

C. project's complexity.

Both of these changes happen simultaneously in a market: the supply of good X falls and the demand for good X rises. This will result in:_______

a. an increase in both the equilibrium price and quantity in the market.
b. an increase in the equilibrium quantity and an uncertain impact on the equilibrium price
c. a decrease in both the equilibrium price and quantity in the market.
d. an increase in the equilibrium price and an uncertain impact on the equilibrium quantity.

Answers

Answer:

d.

Explanation:

This scenario will result in an increase in the equilibrium price and an uncertain impact on the equilibrium quantity. This is because when customers in a market want a product but there is very little supply exists it makes the product more valuable and thus increases the price since consumers are willing to pay more for that product to get their hands on it. Scarcity increases price always, but while the supply and demand of a product are not the same this causes an uncertain impact on the equilibrium quantity.

Bagrov Corporation had a net decrease in cash of $10,500 for the current year. Net cash used in investing activities was $52,500 and net cash used in financing activities was $38,500. What amount of cash was provided (used) in operating activities?
A. $(101,500) used.
B. $(10,500) used.
C. $101,500 provided.
D. $80,500 provided.
E. $(80,500) used.

Answers

Answer:

I believe the answer to that would be B.

Explanation:

Plz mark as Brainliest!

Right Hand inc.'s company structure is designed to provide focus to each distinct industry the company serves. This is an example of a __ structure.

Answers

Answer:

Product

Explanation:

The product structure is a structure that gives an overview of the product to the customers and according to the customer needs and wants the product could be customized. Also the company have to see the customer taste and preferences and modify there products from time to time so that the company could able to accomplish its sales target

Here in the question, the company focused on each and every different industry that the company serves

So this represents the product structure

Accounting Employees view budgeting more positively when goals are established for them by senior management.

a. True
b. False

Answers

Answer:

B

Explanation:

What are the difference between aims and goal​

Answers

Answer:

Goal is a set target that a person wants to achieve, while Aim is the determined course a person sets to achieve a target.

Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?A) Marginal revenue and marginal cos inerese B) Marginal revenue increases but marginal cost remain the same. C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and marginal cost decrease

Answers

Answer: C) Marginal cost may change but marginal revenue remains the same

Explanation:

In a perfect competition the price is set by the market which means that one individual firm cannot change the price. This means that the marginal revenue for everyone is the same. If your firm decided to double its output, total revenue might change but marginal revenue will remain the same.

The marginal cost may change as well because marginal cost is unique to firms so if your firm wants to double output, it might find that it will cost more or less to produce an additional unit of a good.

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