Question

In: Accounting

Currently working on a chart for maturity, YTM, Quoted price, book market value, and market value...

Currently working on a chart for maturity, YTM, Quoted price, book market value, and market value weight where would i find that information or how would i calculate it? Currently doing it for Zoeitis

Solutions

Expert Solution

Answer:

1. The maturity value formula is V= P*(1+r)n

P = Principal Amount

N = number of compounding interval from the time of issue to maturity date.

r = Periodic interst rate.

2. YTM Yield to maturity = ((Face value/present value)/time period)-1

If the YTM is less than the bond's coupan rate, then the market value of bond is greater than par value. If bond's coupan rate is less than its YTM, then the bond is selling at a discount.

3. Quoted Price refers to stock, bond or other secuirity quotes, A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from the other. A quoted price consist of a bid price and an ask price.

4. The difference between book value and market value . The book value of an asset is original purchase cost, adjusted for any subsequent change, such as for impairmetn or depreciation. Market value is the price that could be obtained be selling an asset on a competitive open market.


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