Meacham enterprises' bonds currently sell for $1,280 and have a per value of $1,000. they pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. what is their yield to call (ytc)?
select one:
a. 6.39%
b. 7.08%
c. 7.45%
d. 6.72%
e. 7.82%

c. 7.45%

Explanation:

The yield to call is the rate of return that a bondholder earns when he holds a callable bond until the call date.

With a financial calculator, you can solve this question using the following inputs;

Total duration to the bond being called ; N = 5

Price of the bond ; PV = -1,280

Annual coupon payment ; PMT = 135

The call value at year 5 will be the Face value at that time hence FV = 1,050

Compute the rate ; CPT I/Y = 7.45%

Therefore, the Yield to Call(YTC) is 7.45%

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.

answer; drop shippers;