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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The Red Convertible Louise Erdrich tells us a story about two Native American brothers‚ Lyman and Henry Lamartine‚ and their developing and ongoing connection as brothers. Erdrich uses literary imagery in this story to help describe the relationship between the two brothers. The focus of this story is the red convertible‚ and what it represents; the bond between the two brothers and the hardships the two boys face when Henry goes into the Marines to fight in the Vietnam War‚ and when he returns
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Theme of The Red Convertible In The Red Convertible‚ LouiseErdrich uses the red convertible to symbolize the theme of change in two brothers relationship. The changes in the car parallel with the changes the brothers go through. As the car evolves‚ so does the relationship between Lyman and Henry. The two brothers have a close bond until Henry is sent off to war. Upon his arrival home‚ the changes in Henry and how he relates to his brother is apparent. As the short story opens‚ the brothers
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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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materiality or spirituality. On the contrary‚ Tim O’Brien on “The Things They Carried” and Louise Erdrich in “The Red Convertible” write about the meaning of symbolism. Symbolism can be an object that we have a deep connection to depending on the circumstances we are in. In “The Red Convertible” Louise Erdrich describes the relationship of Lyman and Henry when they both buy a red convertible. The car becomes a symbol of their connection as brothers‚ but also the car foreshadows Henry’s health after he
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The 1996 film‚ Fargo was directed and written by Joel and Ethan Coen. Unlike many films‚ Fargo was not filmed in a linear pattern; instead‚ Fargo was filmed in an episodic pattern with three sets of characters that gradually flow into one linear path. Fargo also has an unusual set of characters‚ with the true roles of the protagonist and antagonist being shown and understood towards the middle of the film. The film was set in 1987 and took place mainly in Brainerd‚ Minnesota. The film focuses on
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BOND PROBLEM SOLUTIONS 1. Six years ago‚ The Corzine Company sold a 20-year bond issue with a 14 percent annual coupon rate and a 9 percent call premium. Today‚ Corzine called the bonds. The bonds originally were sold at their face value of $1‚000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. PV = 1000; N = 6; PMT = 140; FV = 1090; CPT I/Y I/Y = 15.02% 2. You just purchased
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In the short story The Red Convertible‚ written by Louise Erdrich‚ there were two brothers who went through the same problem. Henry and Lyman had a close brotherly bond relationship‚ going through adventures together with the car they bought with their money combined. One day‚ Henry got deployed to Vietnam. As soon as he came back‚ he was a changed man‚ inside and out. Henry only wore his worn out clothes‚ and military boots. He showed no interest to the car as well as to his brother. When both
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Using present value to value bonds A bond‚ from the perspective of the person issuing the bond is a form of long term debt. In the hands of the person who has acquired the bond it is an asset. The agency issuing the bond agrees to pay a fixed sum of money to the holder of the bond for a period of years and then‚ at the end of that period‚ to pay back the face value of the bond. Bonds can be issued by a variety of agencies/companies: 1. Municipal bonds: issued by cities‚ states and
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