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Setler79 [48]
2 years ago
12

YIELD TO MATURITY Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,00

0 par value and a coupon rate of 10%. What is the yield to maturity at a current market price of (1) $865 and (2) $1,166? Would you pay $865 for each bond if you thought that a "fair" market interest rate for such bonds was 12%—that is, if ? Explain your answer.

Business
1 answer:
Sloan [31]2 years ago
5 0

Answer:

1) 13.42%

2) 6.56%

Explanation:

a. Given:

Par value of bonds (FV) = $1,000

Coupon rate = 10%

Coupon payment (pmt) = 0.1 × 1,000 = $100

Present value of bond = $865

Maturity period (nper) = 6

Use spreadsheet function =rate(nper,pmt,-PV,FV)

Yield to maturity when price of bond is $865 is 13.42%

2) If PV is $1166, then yield to maturity is 6.56%

If interest rate is 12%

FV is $1,000

Pmt is $100

nper = 6

The use spreadsheet function =PV(rate,nper,pmt,FV) to compute present value of bond.

Present value of bond is $917.77

Since present value of bond is more high, one can pay $865 for each bond.

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Tju [1.3M]

The full question is:

Karl's Sporting Goods started as a small shop catering to the fly-fishing crowd but as requests were made for different and varied goods, it branched out into an outdoor-sports store. Karl caters to his core customer base of hunters and fishermen, but stocks the latest outdoor gear for those who want to incorporate other sports such as backpacking into their hunting and fishing experience. Due to space limitations, he does not carry mountain bikes, but does carry gear for them. Since Karl's is not located near the ocean or a large body of water, he does not carry wetsuits or other watersports equipment, but he does carry gear that would be required for wading in cold mountain rivers and streams, and canoes and kayaks. His marketing is directed toward hunters and fishermen, but includes activities, events, and sales aimed at bringing outdoor enthusiasts with other interests into his store. Over the past month, he has received numerous request for rock climbing gear. As a result of these requests, Karl has entered into negotiations with three providers of high-quality rock climbing shoes and gear. What do Karl's activities show about his marketing for Karl's Sporting Goods?

Answer:

He has a marketing concept and is acting on it.

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A marketing concept is the way by which businesses identify the needs of customers and come up with strategic ways of meeting those needs better than competing firms.

Different marketing concepts include: production concept, product concept, selling concept, marketing concept, and the societal marketing concept.

In the given scenario Karl's sporting goods only catered for fly fishers but as demand for other items increased they branched into other outdoor sport items.

He is stocking gear for swimming, rock climbing, and mountain bikers through partnership with suppliers even if they are not his primary market.

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3 0
2 years ago
Outlines give you a chance to organize your thinking before determining word choice and sentence structure.
Tresset [83]

Answer:

a. Make each sub-point exclusive

f. Divide the main topic into major components

Explanation:

Outline is a type of table of content that helps a reader to understand the scenario of the overall article or piece. Making an effective outline is a challenging task. However, the following things certainly can make an effective outline.

Putting the main idea in the title is one of them. Under the title, break the topic or title into major components (Option F). Using sub-points make the piece more relevant (Option A). Besides, moving sub-points to larger group or components make the article beautiful (Opposite of Option B). Do not separate the main topic from the title make an outline unclear (Opposite of Option D).

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nalin [4]

Answer:

Contributor to quality and satisfaction

Explanation:

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6 0
2 years ago
Once you have collected data for a message, you’ll need to find a way to organize it. Well-organized messages group similar idea
shutvik [7]

Answer:

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Numeral c would be a good addition to the scratch list, because it lists items that would fall in place for the type of Hotel being described: sparking water, evening wine tasting, and a the mention of a four-star hotel restaurant.

5 0
2 years ago
Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s
larisa [96]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
8 0
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