Business, 08.07.2020 23:01 martinjohnsond079
Harold Reese must choose between two bonds:.
Bond A pays $102 annual interest and has a market value of $890. It has 10 years to maturity.
Bond B pays $88 annual interest and has a market value of $800. It has five years to maturity.
Assume the par value of the bonds is $1,000.
A. Compute the current yield on both bondsBond A 0.1089 or 10.89Bond B 0.1062 or 10.62C. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond X is 11.90 percent. What is the approximate yield to maturity on Bond Z? The exact yield to maturity?Approximate yield to maturity 16.19 ()(How do you get the Exact yield to maturity) for this problem?
Answers: 2
Another question on Business
Business, 21.06.2019 22:20
Suppose a ceiling fan manufacturer has the total cost function c(x) = 48x + 1485 and the total revenue function r(x) = 75x. (a) what is the equation of the profit function p(x) for this commodity? p(x) = (b) what is the profit on 35 units? p(35) = interpret your result. the total costs are less than the revenue. the total costs are more than the revenue. the total costs are exactly the same as the revenue. (c) how many fans must be sold to avoid losing money? fans
Answers: 1
Business, 22.06.2019 01:10
Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ
Answers: 3
Business, 22.06.2019 09:40
As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?
Answers: 3
Business, 22.06.2019 10:20
The following information is for alex corp: product x: revenue $12.00 variable cost $4.50 product y: revenue $44.50 variable cost $9.50 total fixed costs $75,000 what is the breakeven point assuming the sales mix consists of two units of product x and one unit of product y?
Answers: 3
You know the right answer?
Harold Reese must choose between two bonds:.
Bond A pays $102 annual interest and has a market valu...
Questions
Mathematics, 31.07.2019 22:30
Mathematics, 31.07.2019 22:30
Health, 31.07.2019 22:30
Mathematics, 31.07.2019 22:30
Mathematics, 31.07.2019 22:30
History, 31.07.2019 22:30
