BUSINESS COLLEGE

A bond with a coupon rate of 5.16 percent and semiannual coupon payments matures in 12 years. The YTM is 6.37 percent. What is the effective annual yield?

Answers

Answer 1

Answer:

Answer:

6.47%

Explanation:

The computation of effective annual yield is shown below:-

Annual YTM = 6.37%

Semiannual YTM = 6.37% ÷ 2

= 3.185%

Effective Annual Yield = (1 + Semiannual YTM)^2 - 1

= (1 + 0.03185)^2 - 1

= 1.03185^2 - 1

= 1.0647 - 1

= 0.0647

= 6.47%

Hence, the effective annual yield is 6.47% i.e come after applying the above formula

Related Questions

New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $1,000,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, so all of its after-tax income will be paid out as dividends to its investors. The investors will have to pay personal taxes on whatever they receive. How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation? Group of answer choices $26,078 $20,332 $22,763 $19,006 $22,100
2. Alternative explanations of wage disparities Suppose that a labor economist claims that recipients of economics Ph.D.s gain little in terms of acquired productive skills from their graduate studies but that, instead, the degree simply reflects a high level of inherent mathematical ability. Which one of the following characterizes the labor economist's perspective on the link between education and wages?A. Compensating differentialsB. Human capitalC. SignalingD. The superstar phenomenonA famous rapper has earned enormous sums of money by supplying creative music to millions of fans. Which of the following statements characterize this market in which some earn astronomical incomes while others (who may have similar talent) earn very little? Check all that apply.A. Because of technology, his music is essentially a public goodB. The best recording artists have high levels of human capitalC. The best recording artists earn dramatically more than good or mediocre artistsD. Customers in this type of market prefer having twice as much of a good from a recording artist half as talented as the superstarE. Nearly all customers in the market desire the good supplied by the superstar.
Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $85,800 Depreciation expense 12,500 Gain on sale of land 8,000 Increase in merchandise inventory 2,550 Increase in accounts payable 6,650a. $37,400.b. $13,150.c. $94,400.d. $14,150.e. $29,400.
Which examples demonstrate common Governance workplaces and employers? Check all that apply.Melissa works in Washington, D.C., writing and voting on federal laws.Danette uses a vehicle to deliver US mail to people who live in a city.Gavin was elected as a city council member in his hometown.Vito works in a US embassy in China helping Americans with paperwork.
To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.

Which of the following assumptions is likely to be met in the real world? Group of answer choices All labor has zero costs of mobility. Demand for labor is identical in every labor market. All labor is homogeneous. Nonpecuniary factors in each job are not the same.

Answers

Answer:

None of the above

Explanation:

NONE of of the following assumptions is likely to be met in the real world.

Assumptions which include

A) All labor has zero costs of mobility. B) Demand for labor is identical in every labor market. C) All labor is homogeneous. D) Non pecuniary factors in each job are not the same are NOT likely to be met in the real word

Felicia is looking for a new job in the insurance industry. She used to work for the controller of a retail company. What items should she add to her resume to explain her work for the controller? Select the 2 that apply.

Answers

Answer: preparing financial statements

& prepare papers for external auditor

Explanation:

Since Felicia worked for a retail company, there are definitely two things she would have being doing for the retail company that would be similar in the rod she wants to apply for at the insurance industry, they are;

-preparing financial statements;

-prepare papers for external auditor

these are a roles she would have definitely played at one point or the other for the retail store and are vital when working for the insurance industry

you are going to deposit $19000 today. You will earn an annual rateof 3.3 percent for 11 years, and then earn an annual rate of 2.7 percent for 14 years. how much will you have in your account in 25 years?

Answers

Answer:

After 25 years you will have in your account $42,782.05.

Explanation:

First find the Future value of $19000 invested today at the end of 11 years.

PV = - $19,000

Pmt = $0

P/yr = 1

r = 3.30%

n = 11

FV = ?

Using a Financial calculator, the Future Value (FV) after 11 years will be $27,155.46.

Use the $27,155.46 to find future value at the end of the next 14 years at the rate of 2.70%

PV = - $27,155.46

Pmt = $0

P/yr = 1

r = 3.30%

n = 14

FV = ?

Using a Financial calculator, the Future Value (FV) after 14 years will be $42,782.05.

Thus, after 25 years you will have in your account $42,782.05.

Refer to the following list of liability balances at December 31, 2015. Accounts Payable $ 13,000
Employee Health Insurance Payable 450
Employee Income Tax Payable 400
Estimated Warranty Payable 600
Long-Term Notes Payable(Due 2019) 33,000
FICA—OASDI Taxes Payable 560
Sales Tax Payable 370
Mortgage Payable(Due 2020) 6,000
Bonds Payable(Due 2021) 53,000
Current Portion of Long-Term Notes Payable 3,500

What is the total amount of current liabilities?

Answers

Answer:

$18,880

Explanation:

Current Liabilities are those liabilities which need to be paid within on year time. These liabilities are also called short term liabilities.

Following Liabilities are considered as the current liabilities because these needs to be paid within one year.

Accounts Payable $13,000

Employee Health Insurance Payable $450

Employee Income Tax Payable $400

Estimated Warranty Payable $600

FICA—OASDI Taxes Payable $560

Sales Tax Payable $370

Current Portion of Long-Term Notes Payable $3,500

Total Current Liabilities $18,880

Following are all the Non current liabilities balances:

Long-Term Notes Payable(Due 2019) 33,000

Mortgage Payable(Due 2020) 6,000

Bonds Payable(Due 2021) 53,000

If wages grew 4.80 percent, but inflation was 3.60 percent, what was the approximate real increase in wages? (Enter your answer as a percent rounded to 2 decimal places.)

Answers

Answer:

1.2%

Explanation:

The increase in wages must be bench-marked with the rate of inflation because the increase in wages does not determine your purchasing power, If the rate of inflation exceeds the percentage increase wages, your purchasing power is is declining all things being equal..

The real increase in wages = Percentage increase in wages - Inflation rate

= 4.80 percent - 3.60 percent

= 4.80% - 3.60%

= 1.2%

Therefore the approximate real increase in wages is 1.2%

Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)Required:

What is her after-tax rate of return for the City of Heflin bond?
How much explicit tax does Melinda pay on the City of Heflin bond?
How much implicit tax does she pay on the City of Heflin bond?
How much explicit tax would she have paid on the Surething Inc. bond?
What is her after-tax rate of return on the Surething Inc. bond?

Answers

Answer:

What is her after-tax rate of return for the City of Heflin bond?

Melinda's after tax rate of return for the City of Heflin bonds = $200,000 x 6% = $12,000. Interest revenue from city bonds is not taxed.

How much explicit tax does Melinda pay on the City of Heflin bond?

How much implicit tax does she pay on the City of Heflin bond?

$4,000. The tax difference between the yields of the city bond vs Surething bond.

How much explicit tax would she have paid on the Surething Inc. bond?

($200,000 x 8%) x 25% = $4,000

What is her after-tax rate of return on the Surething Inc. bond?

($16,000 - $4,000) / $200,000 = $12,000 / $200,000 = 6%

Other Questions

Where to write the account name? *a)At the bottom of T accountb)At the top of T accountc)In the debit sided)In the credit side

If a seller declines to show a property to a minority he or she could be sued for violating a. HUD. b. fair housing laws.c. the Equal Opportunity Act. d. RESPA

On October 1, a client pays a company the full $12,000 balance of a year-long contract. Using the accrual method, what's the unearned revenue as of December 31

Draft an inquiry letter for purchase of 10 units of IBM P4 computers and 2 units of Lx 300 Epson printers to Kathmandu Computers and Engineering Kathmandu.