A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to worst of this bond when it is released

6.32%

Explanation:

This can be calculate using  the YTC using the following equation:

YTC  = (C + (CP - P) / t) / ((CP + P) / 2)   (1)

Where:

YTC = YTW = yield to call  or yield to worst = ?

C = annual coupon  interest payment = bond interest rate * Bond price = 6% * $100 = $6

CP = call price of the bond  = $104

P = price of the bond  = $100

t = time in years remaining until the call date  = 10 - 1 = 9 years

Substituting the values into equation (1), we have:

YTC  = ($6 + ($104 - $100) / 9) / (($104 + $100) / 2)  = 0.0632, or 6.32%

b

explanation:

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: