2) You notice in Wall Street Journal that price of a 12-year bond, with 4% coupo

Question

2) You notice in Wall Street Journal that price of a 12-year bond, with 4% coupon is 90:16. what is the YTM of this bond? 3) Bavarian Sausage has the following details. Sales: $525,000 COGS: $215,000 AR: $125,000 AP: $185,000 Net Income: $126,000 What is the Profit margin? What is the Average Collections Period? 4) You are a shareholder in a C-Corp. The corporation earns $10 per share before taxes. After it pays corporate taxes, it distributes all remaining earnings as dividends. The tax rate on corporates is 35% and on dividends is 10%, what is the amount of total taxes paid?

Explanation / Answer

Here the quote 90:16 represents 90+16/32= 90.5% For a $ 1K bond, bond price is $905 YTM=x; Coupon semiannual=4% 905=PV(x%/2,2*12,2%*-1000)+1000/(1+x%/2)^(12*2) at x=5.07%, bond price is equal to $ 905. Assumed that bond interest is paid semi-annualy. Please raise another question for remaining part as per chegg policy.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.