0.07 $1,000 = $70. a. Current yield = Annual interest/Current price of bond = $70/$985.00 = 7.11%. b. N = 10; PV = -985; PMT = 70; FV = 1000; YTM = ? Solve for I/YR = YTM = 7.2157% 7.22%. c. N = 7; I/YR = 7.2157; PMT = 70; FV = 1000; PV = ? Solve for VB = PV = $988.46. 7-3 The problem asks you to find the price of a bond, given the following facts: N = 2 8 = 16; I/YR = 8.5/2 = 4.25; PMT = 45; FV = 1000.
Words: 8940 - Pages: 36
1. (TCO A) Which of the following statements is CORRECT? (Points : 10) It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. Corporations face fewer regulations than sole proprietorships. One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. One advantage of forming a corporation
Words: 896 - Pages: 4
|1. |Wachowicz Corporation issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the | | |market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to | | |maturity? | | |
Words: 1348 - Pages: 6
| (29,100) | |Deferred income taxes | (5,300) | (4,600) | |8% callable bonds payable |(45,000) | (20,000) | |Unamortized bond discount | 4,500 | 5,000 | |Common stock | (50,000)
Words: 251 - Pages: 2
Appendix B Use Table FA–1 (in Exhibit B-2) and Table FA–2 (in Exhibit B-4) | a. | To determine the future amount of $20,000 is invested for 10 years, at 6 percent interest, compounded annually. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) | Future value | $ | b. | To determine the future amount of $100,000 is to be received five years from today, at 10 percent annual interest. (Round your FV
Words: 2881 - Pages: 12
Promissory Note (Lump-Sum Payment) 1. Names. Borrower: ________Shayne Ward____________________________________________ Address: ________Suite 1173 Sacramento, CA 95814, USA_______________________ Lender: _________Kelly Clarkson____________________________________________ Address: _________PO Box 309. Hickory, NC 28603. USA_______________________ 2. Promise to Pay. For value received, Borrower promises to pay Lender $___10,000___ and interest at the yearly rate of ___8__% on the unpaid
Words: 417 - Pages: 2
all relevant information. 3. Primary Market The primary market is the part of the capital market that deals with issuing of new securities. Companies, governments or public sector institutions can obtain funds through the sale of a new stock or bond issues through primary market. 4. Secondary Market A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the
Words: 496 - Pages: 2
Sukuk can be defined as Islamic bond, it has been the most active Islamic debt market instrument. It is also known as the Islamic securities in the market today. Literally, Sukuk means certificates. Sukuk also can be defined as certificates of equal value that represent an undivided interest (proportional to the investor’s interest) in the ownership of an underlying asset (both tangible and intangible), usufruct, services or investments in particular projects or special investment activities.
Words: 539 - Pages: 3
Late Reports will not be accepted. Hard copy (2) must be handed in; email reports not accepted. Summarize the activity of your portfolio, including the performance of each security. Performance includes purchase price on close of business January 27, price at close of business February 28 and the dollar and percentage return (which would include any dividends you legitimately would have received by this point). It includes return on cash and return on the whole portfolio. (Performance must
Words: 334 - Pages: 2
3 Preferred is paid first, less risky Common stock can be traded, price could go up more Dividend can go up on common but is fixed with preferred Task 3 1 The coupon rate that AirJet Best Parts should use to sell the bonds at par value is 6.92%. INTEREST RATE what is the yield PMT 37.5 (7.5% semiannual) PV (1062.00) Interest Solve Periods 40 (20 years semiannual) Future Value 1000
Words: 384 - Pages: 2
