subject
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?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.
Answers: 1
question
Business, 21.06.2019 21:50
Discuss how the resource-based view (rbv) of the firm combines the two perspectives of (1) an internal analysis of a firm and (2) an external analysis of its industry and its competitive environment. include comments on the different types of firm resources and how these resources can be used by a firm to build sustainable competitive advantages.
Answers: 3
question
Business, 22.06.2019 08:30
What has caroline's payment history been like? support your answer with two examples
Answers: 3
question
Business, 22.06.2019 10:50
Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.
Answers: 2
You know the right answer?
Harold Reese must choose between two bonds:. Bond A pays $102 annual interest and has a market valu...
Questions
Questions on the website: 13722362