Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10% a. What is the yield to maturity at a current market price of 1. $892 ? Round your answer to two decimal places. % 2. $1,209 ? Round your answer to two decimal places. % b. Would you pay $892 for each bond if you thought that a "fair" market interest rate for such bonds was 12%− that is, if r d

=12% ? I. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. II. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. III. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return. IV. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. V. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return.

Answers

Answer 1

With a market price of $1,209, we use the same values and solve for YTM, which is approximately 7.83%.

The correct statement is: III. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return.

a. To calculate the yield to maturity (YTM), we can use the bond pricing formula and solve for the discount rate that equates the present value of the bond's cash flows to its market price.

The formula for the present value of a bond is:

Market Price = (Coupon Payment / (1 + YTM)) + (Coupon Payment / (1 + YTM)^2) + ... + (Coupon Payment + Par Value / (1 + YTM)^n)

Where Coupon Payment is the annual coupon payment, Par Value is the face value of the bond, YTM is the yield to maturity, and n is the number of years to maturity.

For the first case, with a market price of $892, we have Coupon Payment = $100 (10% of $1,000), Par Value = $1,000, and n = 5.

Using a financial calculator or spreadsheet, we can solve for YTM, which is approximately 13.55%.

b. If the "fair" market interest rate for such bonds is 12% (r_d = 12%), we need to compare the yield to maturity at the given price to the required rate of return.

In this case, the yield to maturity at a price of $892 is approximately 13.55%, which is greater than the required rate of return (12%). Therefore, you would not buy the bond.

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Related Questions

Every economy must answer each of the following questions except one. Which is the exception?
-Why are these particular goods produced?
-Which goods will be produced?
- Who will actually consume the goods produced?
-Which resources should be used?

Answers

In a pure command economy, there is no personal sector, as the central government owns or controls all business.

In a command economy, government officials set countrywide economic priorities, such as how and when to generate economic growth, how to allocate resources, and how to distribute the output.

What are the three most frequent economic systems quizlet?

The three fundamental kinds of financial systems are traditional, command, and market. Traditional financial system is based on customs and beliefs.

Command economy has government leaders controlling elements of production. Market authorities has humans making decisions themselves. .

-Why are these particular goods produced?

Points on the PPF show all the combinations of two goods that can

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DECA is a CTSO for:

A. Blue-collar Workers
B. Maintenance Workers
C. Fashion Students
D. Marketing Students​

Answers

The answer is Marketing Students

the history of the textile industry raises important questions for economic policy. true false

Answers

The history of the textile industry raises important questions for economic policy. its  true .

The methods for determining tax rates, government spending, the money supply, and interest rates, as well as the labor market, national ownership, and many other areas of government interventions in the economy, are all included in the concept of the economy of governments. The majority of economic policy elements fall into one of two categories: monetary policy, which deals with central bank activities related to the money supply and interest rates, or fiscal policy, which deals with government actions related to taxation and spending. International organizations like the International Monetary Fund and the World Bank, as well as political ideologies and the ensuing party policies, frequently have an impact on such policies.

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the effect of capitalizing a cost that should have been expensed causes ______.

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The effect that capitalization of the cost that supposed to be expensed will have is that; The assets will have to be overstated on the balance sheet, while we have to understate the expenses.

A capitalized cost can be regarded as expense that is been added to the cost basis of a fixed asset when working on a balance sheet of a company.

It is usually incurred during purchasing of fixed assets.

We can conclude that an asset will need to be overstated once there is capitalization of cost.

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QUESTION 4 of 10: A clothing designer is looking for a job that can cover her living expenses of $5,000 per month. If she plans on working
forty hours a week, with four weeks a month, what's the minimum hourly wage she needs?

Answers

Answer:

$31.25

Explanation:

40 hours a week x 4 weeks a month = 160 hours of work per month

$5,000 divided by 160 = $31.25

Mankiw Ch 13 problem 1 (12 pts): Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of the following shocks. A) A fall in consumer confidence about the future induces consumers to spend less and save more. B) (skip). C) The introduction of automated teller machines reduces the demand for money

Answers

A) A fall in consumer confidence   about the future induces consumers to spend less and save more: Under floating exchange rates: The decrease in consumer spending will lead to a decrease in aggregate income, which causes the currency to depreciate. The depreciation will make exports cheaper and imports more expensive, which improves the trade balance.

Under fixed exchange rates: The decrease in consumer spending will lead to a decrease in aggregate income, which will cause an excess supply of the domestic currency in the foreign exchange market. To maintain the fixed exchange rate, the central bank must intervene and purchase the excess supply of the domestic currency by selling foreign currency reserves. As a result, the money supply decreases, which raises the interest rates and decreases investment. The decrease in investment causes a further decrease in aggregate income and worsens the trade balance.

C) The introduction of automated teller machines reduces the demand for money:

Under floating exchange rates: The decrease in the demand for money will lead to a decrease in the interest rates, which increases investment and aggregate income. The increase in income causes the currency to appreciate, which makes exports more expensive and imports cheaper, leading to a worsening of the trade balance.

Under fixed exchange rates: The decrease in the demand for money will lead to a decrease in the interest rates. Since the interest rate cannot fall below the fixed rate, there will be no increase in investment or aggregate income. The decrease in the interest rates will cause an excess supply of the domestic currency in the foreign exchange market, which must be intervened by the central bank. The intervention will decrease the foreign reserves, and as a result, the money supply will increase, which raises the interest rates to the fixed rate. The increase in interest rates will lead to an increase in capital inflow, which causes the currency to appreciate, and worsens the trade balance.

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What Do Banks Do With Their Deposits?

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Answer: When a person deposits money into their bank account, the bank can then lend other people that money. The depositing customer gains a small amount of money in return (interest on deposits), and the lending customer pays a larger amount of money to the bank in return (interest on loans).

Explanation: I think

Is there anyway to make money as a teen (Online), I am 14.

Answers

this is not online buttttt, if you’re in high school you can get a work permit, so that when you look for jobs it will be easier to apply to certain places. Although since you’re 14, you would have to work minimal, which is something that most jobs do not consider :(. But online you can try investing?

offering information about a customer's competitor in exchange for an order is unethical. select one: true false

Answers

True. This could be seen as unethical as it could be seen as an attempt to exploit the customer's lack of knowledge about their competitor and gain an advantage in negotiations.

What is customer?

Customer is an individual or organization that purchases goods, services or experiences from a business. Customers have the power to make or break a business and are the lifeblood of any economic system. Companies need to understand their customers’ needs, wants and values to be successful. Companies must also understand the customer’s role in the purchase process and their decision-making criteria. Companies must also take into account customer service, customer experience, and customer loyalty. Companies must be willing to go the extra mile to provide a positive customer experience and keep customers coming back for more.

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True/False. the development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

Answers

False. The development of functional silos within an organization is not considered a key component to achieving successful supply chain process integration.

Functional silos refer to the division of an organization into separate departments or units that operate independently and focus on their specific functions or goals. While functional silos can provide specialization and efficiency within individual departments, they can hinder effective supply chain process integration.

Successful supply chain process integration requires breaking down these silos and fostering collaboration and communication across different functions and departments. It involves aligning goals, sharing information, and coordinating activities to achieve a seamless flow of materials, information, and services throughout the supply chain.

By eliminating functional silos and promoting cross-functional collaboration, organizations can enhance visibility, coordination, and responsiveness in their supply chain processes. This integrated approach enables better decision-making, improved efficiency, and increased customer satisfaction.

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Asking probing questions throughout an interview to find out what the applicant is like is called a/an:

Answers

The process of asking probing questions throughout an interview to find out what the applicant is part of an hiring process called Interviewing.

What is hiring process?

An hiring process is also called recruitment process because its entails the process of choosing the quailified candidate out of total population/

In conclusion, the process of asking probing questions throughout an interview to find out what the applicant is part of an hiring process called Interviewing.

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1. Employees at a call centre have earned a bonus of 0.25% of their salary. The bonus that an
employee who earns £18000 per year can expect to receive is: (1)
А
B
£45
£72
£720
£4500
с
D

Answers

Answer:

£45

Explanation:

Simply multiply 18000 by 0.0025 and you get your result.

A non-entrepreneurship, work-based, agricultural type of sae, in which a student learns and gains skills in a paid or unpaid position describes which type of sae program?.

Answers

A non-entrepreneurship, work-based, agricultural type of sae should have a placement in order to gains skills in a paid or unpaid position describes which type of sae program.

Entrepreneurship is the creation or acquisition of economic value. Under this definition, entrepreneurship is generally seen as a change that involves more risk than would normally occur when starting a business and may involve value other than financial value.

An entrepreneur is someone who starts a new business, takes the biggest risks and reaps the biggest benefits. The process of starting a business is known as entrepreneurship. Entrepreneurs are generally seen as innovators, sources of new ideas, products, services and businesses/processes.

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Differentiate between equity financing and debt financing?

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Answer:

When a business wants to obtain cash, it has two options for financing: equity financing and debt financing. Equity financing is the most common kind of financing accessible to companies. Debt financing refers to the borrowing of money, while equity financing refers to the sale of a piece of the company's stock.

Explanation:

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chris (67) and leon (68) are married, and they will file a joint return. their only income during the year consisted of $34,000 in social security benefits and a $10,000 pension distribution. how much of their social security benefits are taxable?

Answers

The social security benefits that taxable shall be 50%.

How much of your social security benefits will be taxed depends on how high your combined income is.

In this case, the combined income is:

= $10,000 + (50% ×$34,000)

= $10,000+$17,000

=$27,000

There is 2 conditions how your social security benefits will be taxed

Individual filers. If you file a federal tax return as individual and your combine income is between $25,000 and $34,000 you may have to pay income tax on up to 50% of your social security benefits. If your income is above $34,000, you have pay income tax 85% of your social security benefits.Joint filers. If you and your spouse combine income is between $32,000 and $44,000, you have to pay income tax on up to 50%. If your income is above 44,000 up to 85% of your social security benefits is subject to income tax.

Therefore, they have to pay income tax on 50% of their social security benefits.

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The price of a ranchette estate is $260,000. The bank requires a 15% down payment and 3 points at the time of closing. The cost of the ranchette is financed with a 30-year fixed-rate mortgage at 7.45%. What is the mortgage amount? *

Answers

Answer:

Missing word "and the cost of one point at the time of closing"

Down payment = $260,000*15%

Down payment = $260,000*0.15

Down payment = $39,000

Amount of mortgage = $260,000 - $39,000

Amount of mortgage = $221,000

Cost of 3 point at the time of closing = 3% of amount of mortgage

Cost of 3 point at the time of closing = 3% * $221,000

Cost of 3 point at the time of closing = $6,630

If GNP is $200 billion, receipts of factor income from the rest of the world are $10 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is

Answers

Answer:

$220 billion

Explanation:

GNP is $200 billion

Factor income from the rest of the world is $10 billion

Factor income to the rest of the world is $30 billion

Therefore the GDP can be calculated as follows

= $200 billion + (30 billion- 10billion)

= $200 billion + 20 billion

= $220 billion

Hence the GDP is $220 billion

you are an administrative assistant in the purchasing department. Another administrative assistant is getting married in three weeks. Rumor has it that after the wedding, she will not be returning, and two of your peers have come to you asking if it is true because they want to apply for her job. you have not seen an official announcement, however, the assistant did tell you that she plans not to come back. What should you say to your two coworkers?

Answers

In this situation, You should tell your coworkers that you are unsure and that it is not yet official announced.

Co - workers.

Co workers refers a person with whom one works, typically someone in a similar role or at a similar level within an organization.

Given,

Here we have given that, you are an administrative assistant in the purchasing department. And another administrative assistant is getting married in three weeks. There is a rumor has it that after the wedding, she will not be returning, and two of your peers have come to you asking if it is true because they want to apply for her job. Now, you have not seen an official announcement, however, the assistant did tell you that she plans not to come back.

Here we need to find how you should handle this situation.

While we looking into the given question, we have identified the following,

There are 2 administrative assistant in your company.

One is you and another one is a girl and she get married in three weeks. And she also planned to resign after her marriage but this resignation is not officially confirmed.

So, in this situation, two of your peer interested for the position and asking you about the recruitment process.

Here you have to reply the co workers that the resignation is not conformed and if it is officially announced they you have the option to apply for that position.

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If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction into the accounting equation by:____.

Answers

If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction by increasing cash and decreasing accounts receivable.

The accounting equation is a fundamental accounting concept and a crucial part of the balance sheet. The calculation looks like this:

Assets = Liabilities + Shareholder’s Equity

This equation highlights the balance sheet's structure and lays the groundwork for double-entry accounting, also referred to as double-entry bookkeeping. In a double-entry accounting system, every transaction affects at least two accounts.

The balance sheet's foundation is the accounting equation. The statement of financial position and balance sheet are both financial statements. Assets, Liabilities, and Shareholder's Equity are the three main sections of the balance sheet, along with their various underlying components.

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Create a monthly budget for yourself using the steps discussed in the unit. If you don't wish to discuss your financial situation, you can create a budget based on an average individual your age.

Answers

What is being discussed in the unit

The career cluster which provides security and protection for the public is___.
A.Law, Public Safety Corrections, and Security.
B.Hospitality and Tourism.
C.Human Services.
D.Information Technology

Answers

Answer:

A.Law, Public Safety Corrections, and Security.

Explanation:

Officers in the Law, Public Safety Corrections, and Security cluster protect properties and citizens' lives.  Job titles in this cluster include police officers, security guards, lawyers, correctional officers, and legal assistants.

Works in this cluster revolve around jails, police stations, courts, correctional facilities, and public places where people require security and protection.

In order for a check to be legal tender it must be?
O Authorized
O Certified
Signed
O Processed

Answers

Answer:

certified signed

Explanation:

that signature come from police

Answer:

certified signed

Explanation:

The check only have power or in other words legit when only have the certification from the bank or the treasury.

Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months.

Answers

The time it will take to increase the limit to $1,600 is 2.5 years, when the credit card has a credit limit of $1,000.

What is a credit card?

A credit card is a payment card issued to users or cardholders to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt that is promised to the card issuer to pay them for the amounts plus the other agreed charges. The card issuer usually a bank or credit union creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.

A credit card is different from a debit card.

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Your question was incomplete, your full question probably was:

Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not increase your credit line more than 10% each 6-month period. Assuming they increase your limit each 6-month period by 10%, how long will it take to increase your limit to $1,600?

organizational planning will be most beneficial when: group of answer choices the organization is small the market is stable the organization is a one-person operation the market is complex and unstable the market is simple with few competitors and products

Answers

Organizational planning will be most beneficial when D. the market is complex and unstable.

What is organizational planning ?

Planning your organization is similar to plotting your company's course on a map. To remain competitive, you must be aware of your direction.

Organizational planning is how business owners set up a company's daily operations. This might include simple things like the rationale for the company's existence or more complicated things like creating goals to achieve a particular purpose. The organizational plan serves as a guide for developing tasks that, when completed, will help the business reach its objective.

Organizational planning is frequently utilized to boost a business's overall performance, but it can also be used to improve its personnel, finances, or goods. Because of this, there are many different sorts of organizational planning objectives, ranging from workforce development and financial planning to products, services, and expansion planning.

In conclusion, when the market is quite complex and unstable, this is when organizational planning is needed.

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____ are groups of independent companies that join together to share skills, resources, costs, and access to one another's markets

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The term that describes groups of independent companies that join together to share skills, resources, costs, and access to one another's markets is called a business consortium.

A consortium refers to an association or partnership of multiple organizations, institutions, or individuals who come together to pursue a common goal or objective. It is typically formed to pool resources, expertise, and efforts in order to tackle complex challenges or undertake large-scale projects that would be difficult to accomplish individually. Consortia are commonly found in various sectors, including business, research, education, and healthcare. They provide a platform for collaboration, knowledge sharing, and collective decision-making among the participating entities. Consortia often facilitate innovation, foster cooperation, and enable economies of scale, leading to enhanced efficiency and outcomes in the respective domains they operate in.

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the law of one price is enforced by: a governments. b producers. c consumers. d arbitrageurs.

Answers

The law of one price is enforced by d) arbitrageurs. These are individuals or companies who take advantage of price differences between markets by buying low in one market and selling high in another market.

This process helps to equalize prices across different markets, ensuring that the same product is sold at the same price in different locations. Without the actions of arbitrageurs, prices would not be as consistent across different markets, which could lead to market inefficiencies and disparities in access to goods and services.

Arbitrageurs play a crucial role in enforcing this law by exploiting price differences between markets. When they identify a price disparity, they buy the good at the lower price and sell it at the higher price, thereby profiting from the price difference. Their actions help to equalize prices and eliminate any opportunities for risk-free profits. Arbitrageurs ensure that prices converge to a single equilibrium level, promoting market efficiency and the enforcement of the law of one price.

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When an insured under a life insurance policy, died, the designated beneficiary is?

Answers

A beneficiary is a person or entity that you legally designate to receive the benefits from your financial products. For life insurance coverage, that is the death benefit your policy will pay if you die.

Insurance coverage is an economic concept that refers to the protection offered to individuals or businesses against potential losses or damages. In essence, insurance coverage is a risk management tool that shields policyholders from financial liabilities arising from unforeseen events such as accidents, theft, fire, or natural disasters. In exchange for paying premiums, policyholders receive compensation from the insurance company if they experience a loss that falls within the scope of their coverage.

Insurance coverage plays a crucial role in the economy by mitigating the negative impact of risks and uncertainties on businesses and households, thereby fostering economic growth and stability. Insurance companies are able to provide coverage by pooling premiums from a large number of policyholders and investing these funds in various assets such as stocks, bonds, and real estate. The success of insurance coverage depends on the ability of insurance companies to accurately assess risks and set premiums that are commensurate with the likelihood of loss.

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Complete Question:

When an insured under a life insurance policy is the designated beneficiary?

according to the table, the work-eligible population equals to: work-eligible populationa. 90.1%b. 12.2%c. 87.8%d. 8%e. 8.9%

Answers

The work-eligible population equals **87.8%**. The work-eligible population refers to the percentage of the total population that is eligible and available for work.

According to the table provided, the data indicates that 87.8% of the population falls under the category of being work-eligible. This means that a significant portion of the population is considered suitable for employment based on certain criteria such as age, education, and legal status. It is important to note that the work-eligible population percentage may vary across different regions or demographics, and it is a key factor in analyzing labor market dynamics and workforce potential.

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Anyone have a good name for a sports media company?

Answers

Less go, as if you will offer less money to give them the service

What is the best animal?

Answers

Answer: The answer is Dogs

Explanation: Dogs are the best animal because They're not just popular- historically, the symbiotic relationship between dogs and people helped both species survive.

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It is illegal for a corporation to hold a ________ on any product.1.trust2.monopoly3.economics4.surplus Who encouraged African Americans to escape race-based discrimination inthe United States by moving to Africa?A. W. E. B. Du BoisB. Booker T. WashingtonC. Frederick DouglassD. Marcus Garvey what is the slope of the line It is commonplace to find statements on food cans such as Net Weight: 16 oz. (454g) Why do most people find this acceptable? The highest pressure measured in Jupiter's upper atmosphere by the Galileo probe is 22.0 atm. Calculate the highest pressure measured in mm Hg and torr. Round each of your answers to 3 significant digits. 1 mm Hg x 6 ? torr Consider the optimization problem of maximizing CobbDouglas production function: Q = 20 K1/2 L1/2, subject to cost constraint: K + 4L = 64. a/ Use the method of Lagrange multipliers to find the maximum value of the production function;b/ Estimate the change in the optimal value of Q if the cost constraint is changed to K + 4L = 65, and state the new maximum value of the production function. Select the correct answer from each drop-down menu. Complete the sentences about HIPAA rules.The Security Rule of HIPAA applies to a patients ______ protected health information. The Privacy Rule of HIPAA protects a patients health information in either ______ form, ______ form, or ______form.PLATO First-person to answer all questions correctly get Brainliest, Please do note right just to get point this is important to me. which of the following pairs would have larger size ? Explain your answera) k or k+b) Br or Br-c) O2- or F- 17. Find the volume of the prism. in moran v. sims, where the house sims built was surrounded by land owned by moran, and sims sued for the right of access to his house, the courts held that sims had a prescriptive easement. that is a form of: the symbol used to represent a process on a context level data flow diagram is: Who was the author of the mystery document? Suppose f(x,y) = 10xy^2 in 0x1 and 0y1. Find fy(y). O a. 3y+2 b.2y(y^2+2)6 c.5y^4 d. 3y^3 + 1 which of them offers greater datail of face structure,body,dressing,etc?can you cite some differences in their stul is 2 square root of 5 plus three rational or irrational Please in your words and thoughtsWhat have you heard about Medicare? Are you paying attention toany of the changes that are being talked about by politicians? Whyshould you care? what risks do you think an individual might face during or after an earthquake 4c+3d+f c=5 3=d f=-2 Describe events that show terrorism is now a major threat to U.S. national security