1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex_Xolod [135]
3 years ago
7

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third yea

r of the bond (8 years left to maturity) is 8.6%. What is the new price of the bond

Business
1 answer:
Montano1993 [528]3 years ago
5 0

Answer:

$880.31

Explanation:

For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Assuming Future value = $1,000

Rate of interest = 8.6%  ÷ 2 = 4.3%

NPER = 8 years  × 2 =

PMT = $1,000 × 6.5% ÷ 2  = $32.5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $880.31

You might be interested in
Suppose monetary neutrality holds and velocity is constant. A 5 percent increase in the money supply increases the price level b
Alex73 [517]

Answer:  Increases the price level by 5 percent

Explanation:

Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.

It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.

A 5 percent increase in the money supply will therefore increase the price level by 5 percent.

4 0
2 years ago
In the short run, a monopolistically competitive firm continues to increase production _____ if it can at least cover its variab
tankabanditka [31]

Answer:

Until Marginal Revenue = Marginal Cost

​

Explanation:

In the short run, a monopolistic ally competitive firm continues to increase production until MR = MC if it can at least cover its variable cost. This is the profit maximizing condition. If firm is able to cover his variable costs in short run, he should continue production.

8 0
2 years ago
As organizations expand into global markets, business communicators need to become aware of their own culture and how it differs
Natalka [10]

Answer:

1. Robust middle class growth

2. Technological advancements

3. a) A beer and wine selection primarily made up of U.S. brands

b) A policy forbidding employees from dating each other

d) A friendliness policy encouraging employees to smile at customers

e) Plastic bags

Explanation:

Middle class growth in different countries in recent times have increased the sake of smartphone and tablets globally

Technological advancements in the second question would be the only cause of better technologies such as the use of video teleconferencing in the example

The people in this country would not like the listed options as shown here

7 0
3 years ago
Which of these is NOT an assumption of the basic continuous review​ model?
VladimirAG [237]

Answer:

D. The order quantity is​ constant, regardless of the demand.

Explanation:

Basic Continuous Review Model relates to inventory stock management, where each time an inventory unit is added in or moved out the stock level is calculated again.

It do not assume that the order quantity is constant as it calculates inventory level after each order, there is no basic assumption as such.

The review model keeps on moving the stock and tries to maintain such level as by ordering the quantity sold, and it keeps on rotating, but there is no standard set for order quantity.

6 0
3 years ago
According to the Truth in Lending Act, which of the following is the bank NOT obligated to inform you of? A.APY B.Interest calcu
Mama L [17]
According to the Truth in Lending Act, which of the following is the bank NOT obligated to inform you of?

Answer: Out of all the options presented above the one that represents what banks are not obligated to inform you of is answer choice B) Interest calculating method. The reason being that the TILA does not tell financial institutions how much interest they may charge or whether they must grant a consumer a loan.

I hope it helps, Regards.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Executives at mary kay cosmetics' european operations are conducting a study analyzing why households have stopped purchasing ce
    11·1 answer
  • one of the major criticisms of the G-20 is that they are completely ineffective in setting policies? true or false
    6·1 answer
  • Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000. If the
    8·1 answer
  • A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovat
    9·1 answer
  • Who was the first missionary to arrive in Africa?​
    15·2 answers
  • In a period of rising prices, the inventory method which tends to give the highest reported inventory is
    11·1 answer
  • if the federal reserve decreases the reserve rate from 10% to 8%, how does this affect the amount of money that would result bec
    12·1 answer
  • An individual or a firm can internalize an externality by​ ___________. A. disputing that an externality exists. B. doubling the
    9·1 answer
  • Second-degree price discrimination: Multiple Choice results in transfer pricing. None of the answers are correct. is the practic
    9·1 answer
  • It is a business venture by two or more people​
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!