Answer:
5.75%
Explanation:
First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.
<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.
Maturity of the bond ; N = 14.5*2 = 29
Semi-annual rate ; I/Y = (5.3%/2) = 2.65%
Face value ; FV = 1000
Price of the bond or PV = -1045
then compute semiannual coupon payment ; CPT PMT = $28.743
Annual coupon rate is therefore = $28.743*2 = $57.486
Coupon rate = coupon payment / face value
Coupon rate = $57.486 / 1000
= 0.05749 or 5.75%
Toby should use his debit card. he should use his debit card because it’s only 15 dollars which is not an expensive amount. using his debit card would keep the payments he has to make on his credit card lower
Answer:
$1,042.04
Explanation:
to calculate the present value using a continuously compounded interest rate, we can use the following 2 formulas:
1) present value = cash flow / eⁿˣ
- e = 2.71828
- x = 5% / 2 = 2.5%
- n = 10
- cash flow = $1,030
present value = $1,030 / 2.71828¹⁰ˣ⁰°⁰²⁵ = $1,030 / 1.284 = $802.16
2) present value of an annuity = payment [(1 - e⁻ⁿˣ) / (eˣ - 1)]
- payment = $30
- x = 2.5%
- n = 9
- e = 2.71828
present value = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30(0.2015 / 0.0252) = $239.88
present value of the stream of cash flows = $802.16 + $239.88 = $1,042.04
Answer:
External finance needed = $2,088
Explanation:
Note: See the attached excel file for the Calculation of ratios with respect to sales, Proforma Income Statement, Calculation of Retained Earnings and Equity, and Proforma Balance Sheet.
From the Proforma Balance Sheet in the attached excel file, we have:
Total Assets = $12,610
Total Liabilities = $10,448
Therefore, we have:
External finance needed = Total Assets - Total Liabilities = = $12,610 - $10,448 = $2,088
Answer:Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve his goal
Explanation:Hope you understand but this is not the whole thing if you want me to tell you the full answer follow and like and give 5 star rating please.
