Answer:
a) YTM = 9.8%
b) realized compound yield is 9.9%
Explanation:
a) PMT = 80
par value FV = 1000
coupon rate = 8%
curent price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) = 
= 
= 9.8%
b) r2 = 10% = 100%+10%=1.1
r3 = 12% = 100%+12%=1.12
Realized compound yield:First, find the future value (FV. of reinvested coupons and principal
FV = ($80 *1.10 *1.12) + ($80 * 1.12) + $1080 = $1268.16
let a be the rate that makes the future value $1268.16
953.1(1+y)³ =$1268.16
(1+y)³=1.33
1+y=1.099
y = 0.099 = 9.9%
Answer:
It is easier to raise large amounts of capital.
Owners are not personally liable for corporations’ debts
Explanation:
A corporation is a company (or a group of people) allowed to act as a single legal entity.
It is separated from the owner or the manager of the company.So, they are not personally liable for corporations’ debts
.
A corporation can also access to capital markets, this makes things easier to raise large amounts of capital for investment.
Feel free to ask for more if needed or if you did not understand something.
Stating Limitations in a report, It discuss factors beyond your control that affect report quality. The answer in this question is Stating limitations. The limitations in the study are those in the methodology design <span>that impacted or influenced the interpretation of the findings from your </span>research<span>.</span>
The Peak & Vale Accountants provides or offers
other firms and institutions with accounting services. Questions of what is ethical
involve the extent to which the Peak & Vale has an ethical duty beyond
those duties mandated by the law.
