Answer:
The yield to maturity is 9.127%
Explanation:
The yield to maturity is the yield or return on the bond as a percentage of its current price in the market. The formula to calculate the yield to maturity is:
YTM = C + {(F - P) / n} / {(F + P) / 2}
Where,
- C is the coupon payment / interest payment on the bond
- F is the face value of the bond
- P is the current market price of the bond
- n is the years to maturity
The coupon payment = 1000 * 0.113 = 113 per year
So, YTM = 113 + {(1000 - 1127.3) / 8} / {(1000 + 1127.3) / 2}
YTM = 0.09127 or 9.127%
Answer:
Price of bond = $1,365.54
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>
Value of Bond = PV of interest + PV of RV
The value of bond for Orlando Builders Inc. can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 9% × 1000 × 1/2 = 45
Semi-annual yield = 5.80%/2 = 2.9
% per six months
Total period to maturity (in months)
= (2 × 19) = 38 periods
PV of interest =
45 × (1- (1+0.029)^(-21)/0.029)= 1028.087
Step 2
PV of Redemption Value
= 1000 × (1.029)^(-19×2) =337.45
Price of bond
= 1028.08 + 337.45 =1365.54
Price of bond = $1,365.54
The answer is D.
Continue to operate her business, and she is also in long run equilibrium.
Answer:
A. $205,899 thousand
Explanation:
cash flow effect = restructuring charges - the company’s balance sheet included a restructuring accrual
= $235,542 thousand - $29,643 thousand
= $205,899 thousand
Therefore, The cash flow effect of Acadia’s restructuring during fiscal 2017 was $205,899 thousand.
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