Based on the coupon rate, the call price and the selling price, the yield to call is 11.06%.
<h3>How is the yield to call found?</h3>
The formula to find it is:
= (Coupon + (Call price - Current price) / Number of periods ) / ( (Call price + Current price) / 2 ) x 2
Solving gives:
=( (12%/2 x 1,000) + (1,120 - 1,110) / 6 semi annual periods ) ) / ( (1,120 + 1,110) / 2) x 2
= (61.667 / 1,115) x 2
= 11.06%
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The MARGINAL tax rate is the percentage of additional earnings that goes to taxes.
Marginal tax rate stands for the amount of tax paid on any additional income. It is based on progressive tax system that increases with the increase of an individual's income. Thus, it varis with the income of an individual.
Answer:
A-Changing federal income tax rates
Explanation:
The Fed controls the money supply using monetary policy tools. Monetary policy is either expansionary or contractionary. The Fed chooses which policies to apply depending on the prevailing economic conditions.
Monetary policy tools available to the Fed include reserve requirements, interest on reserves, open-market operations, discount rates, and the federal fund rate.
The Fed does not set the federal income tax rates. Taxes are part of the fiscal policy applied by the executive arm of government. The government alters taxation to achieve desired macroeconomics objectives.
Answer:
A broker refers to an individual who is saddled with the responsibility of buying and selling stocks (shares) on a stock exchange market on behalf of his or her clients.
Explanation:
A broker refers to an individual or business firm that is saddled with the responsibility of buying and selling stocks (shares) on a stock exchange market on behalf of his or her clients.
Generally, a broker acts as an intermediary between a buyer (investor) and a seller (securities exchange) for a commission or an agreed upon fee after executing the deal. Thus, a broker also referred to as a stockbroker acts as a principal party in the buying or selling of stocks or securities in the financial markets.
Additionally, the actions or activities of a broker in the financial market is regulated by regulatory (financial) institutions such as the securities and exchange commission (SEC).
