What are Yield to Maturity (YTM) and Yield to Call (YTC)? By calculating the present and future value of bonds‚ managers can make sound decisions about their potential strengths and weaknesses as investments. Answer the following questions in this week’s Discussion 2 thread: 1. What terms (or inputs) are needed to calculate yield to maturity (YTM)? How does this compare to calculating yield to call (YTC)? To calculate the YTM you will need to use Annual Interest‚ Par value‚ Market Price
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2. I noticed that all of the ionic compounds are soluble in water. This is due to the fact that water molecules are polar. Meaning that they have dipole bonds‚ which have a slightly positive and slightly negative end due to electronegativity differences between atoms. When ionic bonds are placed in water‚ they dissociate into their ions (positive and negative) due to the process of dissociation. These ions are then attracted to different dipoles present in the water molecule‚ in other words the negative
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Purpose: The purpose of the lab was to observe what happens when two ionic compounds are combined in a small area and to be able to record the type of precipitate that is formed. Background: An ionic compound is formed when ions “transfer‚” or lose or gain electrons. The ions in an ionic compound are held together by ionic bonds in a lattice shaped structured. They are packed tightly together to maximize the attraction between the ions. When two compounds are mixed together‚ they form a precipitate
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Bonds and Their Valuation After reading this chapter‚ students should be able to: • List the four main classifications of bonds and differentiate among them. • Identify the key characteristics common to all bonds. • Calculate the value of a bond with annual or semiannual interest payments. • Explain why the market value of an outstanding fixed-rate bond will fall when interest rates rise on new bonds of equal risk‚ or vice versa. • Calculate the current yield
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perpetual bond is currently selling for RS. 95/-. The coupon rate of interest is 13.5%. The approximate discount rate is 15%. The value of the bond and the YTM is: (a) Rs. 90/- and 14.2% Value is (13.5*15%=90) and YTM is ((13.5/95)*100=14.21%) (b) Rs. 100/- and 13.5% (c) Rs. 90 and 15% (d) Rs. 90/- and 13.5% 902. In 2001‚ Meridian Ltd. has issued bonds of Rs. 10‚000/-each due in 2011 with a 14% per annum coupon rate payable at the end of each year during the life of the bond. If the required
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NAME: MASSAWE BARAKA‚ REG. NO: 2010-04-03894. 12 FINANCE 202 INDIVIDUAL ASSIGNMENT UDBS Consider a 10 year bond that has a face value shs 1000‚ a coupon rate of 6% and pays interest once a year. (a)Suppose person A bought this bond at par when it was initially issued and sold it 1 year later to person B for shs 1024.What is B’s total return? Soln Total return =[ Interest paid +(selling price – buying price)]/buying price Given; Annual interest paid = coupon rate x par value‚ coupon
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Procedure Read through the following Procedures and then draw a data table in your notebook to record your observations about any precipitates or gases that form when the two solutions are combined. Remember to include color for precipitates. Examine the reactions against both dark and white backgrounds. If there is no reaction for that combination of solutions write NR (no reaction). Before beginning‚ set up a data table similar to the Data Table: Solubility Rules Table in the Lab Report
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90‚000 Share of dividends (.25 × $160‚000) (40‚000) Balance in investment account $550‚000 2)During 2008‚ PK Co. purchased 2‚000‚ $1‚000‚ 9% bonds. The carrying value of the bonds at December 31‚ 2010 was $1‚960‚000. The bonds mature on March 1‚ 2015‚ and pay interest on March 1 and September 1. PK sells 1‚000 bonds on September 1‚ 2012‚ for $988‚000‚ after the interest has been received. PK uses straight-line amortization. The gain on the sale is Discount amortization: $40
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Topic 4 - Bonding 4.1 Ionic bonds 4.1.1 Ionic bond: +ve (cations) and -ve (anions) ions are attracted to each other and form a continuous ionic lattice 4.1.2 Group 1 metals form +1 ions‚ group 2 metals form +2 ions‚ metals in group 3 form +3 ions . Examples : Li+‚ Mg2+‚ Al3+. Greater ease of ionisation Li->Cs is due to the increased electron shielding of the nuclear attraction caused by additional inner shells of electrons. The easier atoms are to ionise‚ the more reactive they
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Unit C2‚ C2.2.3 Covalent structures 1. This drill contains an electric motor. The diagram below shows the main parts of an electric motor. The carbon contacts are made of graphite. Springs push the contacts against the copper ring. The contacts conduct electricity to the copper ring. The copper ring rotates rapidly but does not stick or become worn because the graphite is soft and slippery. Graphite has properties which are ideal for making the contacts in an electric motor. Explain
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