Nelson Software Inc has bonds on the market with a YTM of 7.79%, a coupon rate of 7.5%, and a current yield of 7.73%. The bonds have 22 years to maturity, pay semmiannual coupons, and are priced at 97. What is the effective annual yield on these bonds?a) 7.55%b) 8.55%c) 7.94%d) 7.5%

7.94%

Explanation:

The effective annual yield on these bonds would be calculated as:

= [1 + (YTM/2)]² - 1

= [1 + (0.0779/2)]² - 1

= [1 + 0.03895]² - 1

= 1.079417103 - 1

= 0.079417103

= 7.94%

Therefore, the effective annual yield on these bonds would be 7.94%.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total