answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aliya0001 [1]
2 years ago
10

Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,902.14. The bond has a coupon rate of 6.48 percent and m

atures in 12 years. If the bond makes semiannual coupon payments, what is the YTM of the bond?
Business
1 answer:
Virty [35]2 years ago
8 0

Answer:

yield to maturity = 7.06%

Explanation:

yield to maturity (YTM) is calculated using the following formula:

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

  • FV = $2,000
  • PV = $1,902.14
  • C = $2,000 x 6.48% x 1/2 = $64.80
  • n = 12 x 2 = 24

YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually

Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.

You might be interested in
Jake has been asked to help test the business continuity plan at an offsite location while the system at the main location is sh
Xelga [282]

Answer: a. True

Explanation: A parallel test invovles bringing the recovery site to a state of operational readiness, but maintaining operations at the primary site

8 0
2 years ago
Read 2 more answers
Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contra
Schach [20]

Answer:

3,825.2 labor hours

Explanation:

Learning rate (Unit 1 and unit 2):

= Labor hour required for 2nd unit ÷ Labor hour required for 1st unit

= 1,200 ÷ 2,000

= 0.60

Learning rate (Unit 2 and unit 3):

= Labor hour required for 3rd unit ÷ Labor hour required for 2nd unit

= 1,130 ÷ 1,200

= 0.94

Average of learning rates = (0.60 + 0.94 ) ÷ 2

                                           = 0.77

As per learning curve calculator the value of 77% for 6 units = 4.0776

Cumulative time = Factor × Time of first unit

                           = 4.0776 × 2,000

                           = 8,155.2

Hence,

Time for next three units:

= Cumulative time - Sum of the time of first, second and third unit

= 8,155.2 - (2,000 + 1,200 + 1,130)

= 3,825.2 labor hours should Simpson plan for.

4 0
2 years ago
Assume that a certain product has the demand function given by
ss7ja [257]
What is the question? sorry I can't help
3 0
2 years ago
In which countries do people prefer discussing business during meals?​
Masteriza [31]

Answer:

china

Explanation:

if your traveling to china on business do not discuss business during meals .

6 0
2 years ago
Read 2 more answers
You are the founder of Shadow Skateboards, and you are considering methods of gaining and sustaining a competitive advantage. Wh
bogdanovich [222]

Answer:

The correct option is A,devoting resources to researching and developing new products that will be more durable than competitors'

Explanation:

Creating sustainable advantage means that the company is able to do something very difficult for competitors to copy.

Sustainable advantage is not about cost reductions,is about a perceived  value added to products or services not seen anywhere else.

If customers upload their designs for the company to produce, it does not necessarily mean the product is fit for purpose, as the company does not have full control over it.

7 0
2 years ago
Other questions:
  • Due to the limitation of land and water resources on planet earth, biotechnology can help to increase the crop yields to meet hu
    13·1 answer
  • ________ advertising encourages wholesalers and retailers to carry the products of a specific manufacturer.
    11·1 answer
  • The size of a loan and its issuance costs​ (as a percentage of the amount​ borrowed) are​ ________.
    13·1 answer
  • Suppose that the government decides to issue tradable permits for a certain form of pollution. true or false: in terms of econom
    12·1 answer
  • Pearson Collections (PC) sells one-pound cans of coffee for $25 each. The variable cost to produce each can is $17.50, and fixed
    14·1 answer
  • ​Nourishmix, Inc. manufactures food processors. The target sales price is​ $420 per unit. The company desires a​ 30% net profit
    8·1 answer
  • A national political organization segmented the area of Jackson Hole, Teton County in Wyoming for its political marketing campai
    6·2 answers
  • Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi
    7·1 answer
  • Beck Kubiak wishes to purchase new appliances for her home. The total cost for the appliances is $2,900. To finance the purchase
    6·1 answer
  • Stock in Cheezy-Poofs Manufacturing is currently priced at $80 per share. A call option with a $80 strike and 90 days to maturit
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!