Question

In: Finance

Can you show me how to work out the problem below to get the right answer...

Can you show me how to work out the problem below to get the right answer in EXCEL please? Please show work and formulas to calculate the right answer

Two years ago an investor purchased a 6% semi-annual compounding coupon bond with a remaining maturity of 15 years at a price of (at that time) 85% of par. Today, i.e. two years after the purchase, the investor realizes that the bond has exactly the same price like it had two years ago (i.e. 85%). Based on this information, which of the following answers is correct:

A. The YTM of the 6% Bond today is the higher than two years ago.

B. Overall, the profit for the investor from this investment over the two years is Zero.

C. Over the remaining life of the bond, the value of the principal is less than the value of the coupons.

D. If the investor held the 6% coupon bond until maturity, the overall return from this investment over the 8 years would be 100% minus 85%, i.e. 15%.

E. None of the above answers is correct.

Solutions

Expert Solution


Related Solutions

Can you please show me the work on how you get your answer please (thank you...
Can you please show me the work on how you get your answer please (thank you in advance kings and queens of chegg) Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases800,000 Direct labor 415,000 Overhead applied730,000 Actual overhead745,000 Selling and administrative salaries500,000 Other selling and administrative expenses185,000 Sales revenue5,000,000 Inventory data: January 1 December 31Raw material 75,000 100,000Work in process 105,000 140,000Finished goods 120,000 125,000Calculate the cost of goods sold. Assume that under/over...
PLEASE TELL ME HOW TO GET TO THESE ANSWERS AND SHOW WORK. Below is the shareholders’...
PLEASE TELL ME HOW TO GET TO THESE ANSWERS AND SHOW WORK. Below is the shareholders’ equity section of Matt Co.’s balance sheet for December 31, 2018 and December 31, 2017. Matt uses the treasury stock method to account for repurchases. During 2017, Matt repurchased 1,000 shares at $10 per share. December 31, 2018 December 31, 2017 Common Stock (par value $0.01) 120 100 Paid-in Capital, in excess of par 189,880 149,900 Paid-in Capital, share repurchase 3,200 0 Treasury Stock...
Please show work for how you get answers for a and b. FOR A the answer...
Please show work for how you get answers for a and b. FOR A the answer is -46,247.78 For B the answer is 930,668. Lease or Buy Wolfson Corporation has decided to purchase a new machine that costs $3.2 million. The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 35 percent. The Sur Bank has offered Wolfson a four-year loan for $3.2 million. The repayment schedule is four...
Please show the work for how to get the answer. Thank you in advance. Assume that...
Please show the work for how to get the answer. Thank you in advance. Assume that all of the mass of a bicycle wheel is concentrated at its rim. Such a wheel of mass 1.2 kg and radius 30 cm starts from rest at the top of a hill 100 m long and inclined at 20� to the horizontal. What will be the speed of the wheel at the bottom of the hill if it rolls without slipping? (Answer: 15...
Problem 1 (In order to get credit, show your work and you can copy the tables...
Problem 1 (In order to get credit, show your work and you can copy the tables below into the answer box to fill in.) Sugar Land Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by a MBA student. The production line would be set up in unused space in Sugar Land’ main plant. Total cost of the machine is $260,000. The machinery has an economic life of 4 years,...
please show me or tell me a trick, on how can i tell right away when...
please show me or tell me a trick, on how can i tell right away when a characteristics equation(system) is 1)overdamped 2)underdamped 3)critically damped 4) nonlinear show each an example write neatly!!!!!
Can you show me how this problem is B Consider a population in which the frequencies...
Can you show me how this problem is B Consider a population in which the frequencies of allele A is p=0.7 and the frequency of a is q=0.3 The fitness of each of the genotypes are as follows: wAA = 1 wAa = 0.9 waa = 0.8 What will be the allele frequencies of p and q after one generation? A. p =0.5 q =0.5 B. p = .722 q = .278 C. p = .70 q = .30   D....
Hello! Can you show me how to this problem by hand? No Excel please! An organization...
Hello! Can you show me how to this problem by hand? No Excel please! An organization is considering the purchase of new machines to automatically conduct some quality control tasks. The machines are expected to save production cost which is given below as Annual Income. The machines are expected to be part of the production process for 5 years. The company has a minimum attractive rate of return (MARR) of 5.4%. The following data is available for these new machines:...
I do not know how to answer part b. Can you show me how to conduct...
I do not know how to answer part b. Can you show me how to conduct a hypothesis test for this problem? As I know the answer for part a is 0.4 Let X be the weight of flour (in g) contained in a 1kg bag of flour made by a certain company and assume X~U(980,1030). a) What is the probability that the bag of flour has less than 1kg of flour in it? b) The owner of this factory...
The correct answers are already bolded, but please show your work/explain how you get the answer....
The correct answers are already bolded, but please show your work/explain how you get the answer. 1. Rick can cut 6 pieces of wood or catch 6 fish per day. Timmy can cut 9 pieces of wood or catch 18 fish per day. Which one of the following points is not on the Timmy’s production possibility frontier fish is on the horizontal axis and pieces of wood is on the vertical axis? a. (0, 9) b. (18, 0) c. (8,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT