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Tanya [424]
2 years ago
8

Signature Sweets, Inc. has 8 percent semiannual bonds outstanding with 15 years to maturity. The latest quote on these bonds is

109.16 percent of the face value. What is the yield to maturity
Business
1 answer:
Zepler [3.9K]2 years ago
8 0

Answer:

Yield to maturity is 7% annually

and 3.5% semiannually  

Explanation:

If a bond is held until maturity, the total return expected from the bond until maturity is known as Yield to maturity. It is considered as long term and expressed in annual term.

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

Where

C = Coupon payment = 100 x 8% = 8 annually = 4 semiannually

F = Face value = $100

P = Price of bond = $109.16

n = number of periods = 2 per year x 15 year = 30 periods

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

Yield to maturity = [ 4 + ( ( $100 - 109.16 ) / 30 ) ] / [ ( 100 + 109.16 ) / 2 ]

Yield to maturity = 3.69 / 104.58

Yield to maturity = 0.0353 = 3.53% = 3.5% semiannually ( rounded off to 1 decimal place) = 7% annually

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Stickley furniture
solniwko [45]

Answer:

1. Repetitive and continuous

2. Call

3. How, what, and when

4. Material problem

Explanation:

The work of Stickley furniture is described as repetitive and continuous. This is because, the company will continue to be producing the same kind of furniture continuous, This will be so because, furniture have a limited number of make. For example, furniture are chairs, tables, cabinet, stool and shelf. These things will be continually produced by the company.

The company will be able to keep track of job status and location through call.

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2 years ago
Amazon's latest attempt to shore up and enhance its competitive barriers by introducing a home service marketplace that may help
fenix001 [56]

Answer:

<u>Customer excellence</u>

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4 0
2 years ago
Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her (all are u
Kipish [7]

Answer:

a. $58,000

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c. $9,000

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a. The computation of taxable income is shown below:-

Taxable income = Salary - Short term capital loss + Cash Prize - Greater of Standard or itemized deduction for year 2018 (assumed)

= $80,000 - $2,000 + $4,000 - $24,000

= $58,000

b. The computation of tax liability is shown below:-

Tax liability (Surviving spouse) = ($1,940) + ($58,000 - $19,400) × 12%

=  $1,940 + $38,600 × 12%

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= $6,572

c. The calculation of Charlotte's child and dependent tax credit is given below:-

= ($2,000 × 4) + ($500 × 2)

= $8,000 + $1,000

= $9,000

6 0
2 years ago
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