The bonds issued by Stainless Tubs bear a 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $989. What is the yield to maturity

Answers

Answer 1
Answer:

Answer:

The annual YTM will be = 6.133735546% rounded off to 6.13%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

C is the coupon payment

F is the Face value of the bond

P is the current value of the bond

n is the number of years to maturity

 

Coupon payment = 1000 * 0.06 * 6/12 = 30

Number of periods remaining till maturity = 11 * 2 = 22

semi annual YTM = [ (30 + (1000 - 989 / 22))  /  (1000 + 989 / 2)

semi annual YTM = 0.03066867773 or 3.066867773% rounded off to 3.07%

The annual YTM will be = 3.066867773% * 2 = 6.133735546% rounded off to 6.13%


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Regarding the AQCD​ criteria, strive to include all high quality factors in an external assessment for a firm. A high quality factor will meet​ ______ of the AQCD​ criteria; a low quality factor will meet​ ______ of the AQCD criteria. A. ​3; 1 B. 3 or​ 4; 2 or fewer C. 3 or​ 4; 0 D. ​4; 0 E. ​All; none

Answers

Answer:

Option B) 3 or​ 4; 2 or fewer

Explanation:

A high quality factor will not meet 3 or 4 and low quality factor will not meet 1 or 0 so option A, C and D are incorrect.

The correct option is B. 3 or 4; 2 or fewer as a high quality factor will meet three or four of the AQCD criteria; a low quality factor will meet two or fewer of the AQCD critieria.

The bonds of Lapeer Airlines, Inc., are currently trading on the market at $1,119.34. They have a par value of $1000, make semi-annual coupon payments with a coupon rate of 6.4%, and a YTM of 4.6%. How many years until these bonds mature?

Answers

Answer:

Number of years = 7.54 or 8 years

Explanation:

We know,

YTM = (I + (M - V_(o))/(n) )/((2M + V_(o) )/(3))

Here,

I = Coupon payment

M = Par value

V = Market price

Given,

M = Par value = $1,000

V = Market price = $1,119.34

I = Coupon Payment = Par value × Coupon rate = $1,000 × 6.4% = $64

Since, it is a semi-annual payment = $64/2 = $32

YTM = 4.6%

Therefore, putting the value into the above formula, we can get

YTM = (32 + (1,000 - 1119.34)/(n) )/(((2*1,000) + 1,119.34)/(3))

or, 0.046 = ((32n - 119.34)/(n) )/((3,119.34)/(3))

or, 0.046 = ((32n - 119.34)/(n) )/(1,039.78)

or, 47.82988 = (32n - 119.34)/(n) [Multiplying both the sides by 1,039.78]

or, 47.82988n = 32n - 119.34 [Multiplying both the sides by n]

or, 47.82988n - 32n = -119.34

or, -15.82988n = -119.34

or, n = (-119.34) ÷ (-15.82988)

Therefore, n = 7.54 years or almost 8 years.

According to the VRIO (value, rarity, imitability, organization) criteria, which of the following marketing or supply chain activities must be avoided by companies? a. Activities that are hard to imitate
b. Activities that add value
c. Activities that contribute to organizational capabilities
d. Activities that are followed by other vendors

Answers

Answer:

D.

Explanation:

According to VRIO there are 4 questions  asked about a resource or capability to determine its competitive potential:

The Question of Value: Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" (can it add value? )

The Question of Rarity: "Is control of the resource/capability in the hands of a relative few?"  

The Question of Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?"  (can other vendors do the same activities?)

The Question of Organization: "Is the firm organized, ready, and able to exploit the resource/capability?" "Is the firm organized to capture value?"

With those 4 questions, we analize the statements.

a. It is in accordance with the question of imitability.

b. It is in accordance with the question of value.

c. It is in accordance with the question of organization.

d. It should be avoided. We don't want our activities to be imitated.

ne year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 145 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock

Answers

Answer:

realized loss = -20.31%

Explanation:

stock price ¥3,150, total operation ¥315,000

in US dollars = ¥315,000 x $0.00952 = $2,998.80

current market price ¥3,465, total operation ¥346,500

in US dollars = ¥346,500 / ¥145 = $2,389.66

realized loss = (current value in US dollars - initial investment) / initial investment = ($2,389.66 - $2,998.80) / $2,998.80 = -20.31%

Even though the stock price increased significantly (10%), the yen depreciated against the dollar even more (-38%)

Many demographers predict that the United States will have zero populationgrowth in the twenty-first century, in contrast to average population growth of about 1percent per year in the twentieth century. Use the Solow model to forecast the effect ofthis slowdown in population growth on the growth of total output and the growth ofoutput per person. Consider the effects both in the steady state and in the transition between steady states

Answers

Answer:

Check the explanation

Explanation:

  • The foremost thing is to first consider steady states. The Sluggish population growth rate swings in the line representing population growth and depreciation to the downward trend.
  • The new stable rate has a superior level of capital per worker thereby having a higher level of output per worker.
  • In Steady state, the entire output develops at rate n, whereas the output rate per worker grows at figure 0. Hence, slower population growth will hamper the figure of total output growth, but the rate of per-worker output growth will be the same.
  • Now reflect on the transition. We know that the constant-state level of output per worker is higher with little population growth. Hence, for the period of the transition to the new steady state, output per worker should grow at a rate faster than 0 for a sometime.

Rubrix, a leading animation and gaming company, launches its video game console at an introductory price of $189.00, which is relatively low for products of this category. The reasoning behind this low pricing is that Rubrix expected fierce competition to move in rapidly. Also, the demand for video game consoles varied according to the price sensitivity of prospective customers. Identify the pricing policy used here.Skimming policy

Markdown policy

Going-rate policy

Penetration policy

Answers

Answer:

The correct answer is letter "D": Penetration policy.

Explanation:

Penetration pricing refers to a strategy by which firms introduce their products at a price lower than the average in the market in an attempt of attracting the greater quantity of consumers possible and wiping out competitors. After the competition is removed, the entity plans to set the price of its good higher since it has the control of the market now assuming customers would not have found a substitute.

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