Business High School

one year ago, you purchased a $1,000 face value bond at a yield to maturity of 9.45%. the bond has a 9% coupon and pays interest semiannually. when you purchased the bond, it had 12 years left until maturity. assuming you are able to reinvest the coupon at the ytm of 9.45% over the one year period. you are selling the bond today when the yield to maturity is 8.20%. what is your realized yield on this bond?

Answers

Answer 1

The yielded bond in this situation according to the question is 18.50%.

What is bond valuation?

The calculation of a bond's fair price is known as bond valuation.

The theoretical fair value of a bond is the present value of the stream of cash flows it is anticipated to produce, just like with any securities or capital instrument.

In order to determine a bond's value, prospective cash flows are discounted to the present using a suitable discount rate.

If comparable instruments exist, the discount rate is frequently calculated using them.

Then, at the specified price, a number of related yield-measures are calculated.

A bond is selling at a discount when its market price is lower than its face value. The bond is selling at a premium if the market price is higher than face value.

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Related Questions

is also called procurement. a.purchasing management b.automation c.inventory management d.materials control e.quality control

Answers

Purchasing management is also called procurement. The procurement is the term which means to buy or purchase products and services for the selling purpose.

The purchasing management is the management in which the business buys the products in the bundle or stock quantity for the re-selling purpose or to make their business products as taking the raw material or intermediate  goods or stocks.

The purchasing management is the management in which the small seller or shopkeeper become unite with the big organization or business to sell their products and give some profit at the end of the year.

The purchasing management is good for those seller who is not able to sell their products.

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a company had net cash flows from operations of $143,000, cash flows from financing of $376,000, total cash flows of $569,000, and average total assets of $3,880,000. the cash flow on total assets ratio equals:

Answers

Option B  is correct. A company had net cash flows from operations of $143,000, cash flows from financing of $376,000, Total cash flows of $569,000, and average total assets of $3,880,000. the cash flow on total assets ratio equals 4.1%.

Net cash flows from operations = 133000

Divide by Average total assets  = 3280000

Cash flow on total assets ratio = 4.1%  

Option B 4.1% is correct.  

Cash float is a degree of ways awful lot cash a business introduced or spent in general over a time period. Coins go with the flow is generally damaged down into coins glide from working sports, making investment sports, and financing sports on the announcement of cash flows, a common economic assertion.

Cash drift from operations is comprised of fees made as part of the regular route of operations. Examples of these coins outflows are payroll, the fee of goods sold, hire, and utilities. Coins outflows can range considerably whilst business operations are fairly seasonal.

A coins flow declaration suggests the exact amount of a company's cash inflows and outflows over a time frame. The earnings announcement is the maximum commonplace financial announcement and shows an enterprise's revenues and total costs, along with noncash accounting, such as depreciation over a period of time.

 

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Complete Question:

A company had net cash flows from operations of $133,000, cash flows from the financing of $356,000, total cash flows of $539,000, and average total assets of $3,280,000. The cash flow on total assets ratio equals:

Multiple Choice

A). 16.4%.

B). 4.1%.

C). 3%.

D). 16.5%.

E). 24.7%

describe the options that you have if the goods that you receive as a buyer are nonconforming to the goods described within a written sales contract?

Answers

Nonconforming goods are delivered that don't satisfy the specifications (quantities and qualities) of the requested goods defined in a purchase contract.

What are the remedies available to a buyer?

1. Lawsuit for Damages for Non-Delivery - If the seller wilfully fails or declines to deliver the products to the buyer, the buyer may bring a lawsuit for damages for non-delivery. Additionally, in the event of non-delivery, the buyer has the right to get their money back, if they have already paid the price.

2. Lawsuit for price - In the event that the buyer has already paid the price but the items are not delivered to him, he may sue to reclaim the money.

3. Suit for specific performance - When the goods are specified or determinable, the buyer may bring legal action against the seller to require him to fulfil the same goods as agreed upon under the terms of the contract. Only in cases where the products are specific or known, does the court issue orders for specific performance and damages.

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