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sashaice [31]
2 years ago
14

Up in Smoke Tobacco Shops' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is th

e bond's yield to maturity if the bond is selling for $937.75 (rounded to the nearest whole percent)
Business
1 answer:
lara [203]2 years ago
6 0

Answer:

10%

Explanation:

Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.

10% yearly interest rate = 5% semiannual interest rate

we must determine the PV of the 20 coupons paid and the face value at maturity.

to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80

the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89

the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.

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Teresa Carleo, the owner of Plant Fantasies, believes she is a good communicator, but sometimes employees do not seem to underst
amid [387]

Answer: Perceptual barriers  

   

Explanation: As the name suggests perceptual barriers refers to the barriers that are created out from the perceptions. In such barriers the receiver did not even try to understand the message with all his efforts and behaves carelessly.

In the given case, the employees of Teresa did not understand the message and state that they do. Therefore, the employees might be acting carelessly or have some other perception about their boss.

They could have a perception that asking too much questions might affect their image in the eyes of boss.

Hence from the above we can conclude that the correct option is B.

4 0
2 years ago
6-19. Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvag
Lemur [1.5K]

Answer:

Site B should be chosen based on the IRR criterion

Explanation:

Please check the attached image for the complete question

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

When comparing projects, the project with the highest IRR should be chosen.

I hope my answer helps you

3 0
2 years ago
Troy starts a job right out of college. He feels lucky to have found a position in the financial industry. Troy knows that he ne
Mashutka [201]

Answer:

Mentoring Plan.

Explanation:

This is a form of a continuous schooling process that is more of ‘giving advice’, or passing on what your experience was in a particular area or situation.

It is a system of semi structured guidance whereby one person shares their knowledge, skills and experience to assist others to progress in their own lives and careers. Mentors need to be readily accessible and prepared to offer help as the need arises within agreed bounds.

Mentors very often have their own mentors, and in turn their mentees might wish to ‘put something back’ and become mentors themselves - it's a chain for ‘passing on’ good practice so that the benefits can be widely spread.

3 0
2 years ago
The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month
Cloud [144]

Answer:c $1666F

Explanation:

See attached file

5 0
2 years ago
Boris, Carina, and Theo have decided to go into business as a limited partnership importing and selling exotic spices. Boris and
adoni [48]

Answer:

Boris, Carina, and Theo each owe $3 million jointly and severally, so Alina may sue one, two, or all three for the $3 million balance.

Explanation:

Under a partnership firm, all the partners are held equal in terms of liability, and they are held liable independently and together for the same amount.

Accordingly, it do not matter whether the partner is active or not active in the business.

Therefore, in the given instance also, even though Theo was not an active partner he shall also be held liable for any damage to any third person because of concerned business.

Thus, correct option is:

Statement B

4 0
2 years ago
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