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agasfer [191]
2 years ago
11

What is the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, t

hat has a ytm of 13 percent?.
Business
1 answer:
Katen [24]2 years ago
3 0

The current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14%, paid semiannually, and a YTM of 13% is $1,899.31.

<h3>How is the price of bonds calculated?</h3>

The price of bonds can be computed using the present value formula of all future cash flows.

The present value table can also be used.  Here, we have used the present value calculator from an online finance calculator, as below.

<h3>Data and Calculations:</h3>

N (# of periods) = 24 (12 x 2)

I/Y (Interest per year) = 13%

PMT (Periodic Payment) = $140

FV (Future Value) = $1,000

<u>Results:</u>

PV = $1,899.31

Sum of all periodic payments = $3,360 ($140 x 24)

Total Interest $2,460.69

Thus, the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14%, paid semiannually, and a YTM of 13% is $1,899.31.

Learn more about the price of bonds at brainly.com/question/25596583

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Blake and Matthew are partners who agree that Blake will receive a $103,000 salary allowance and that any remaining income or lo
Sedaia [141]

Answer:

total net income = $109,000

Explanation:

given data

Blake receive = $103,000

Matthew capital account is credited = $3,000

solution

we know that both partner get equal part in  remaining loss or income

so here Blake get $3,000 as share of the net income

so that here net income for the period, that will Blake's salary allowance +  amount shared in both persons of net income

as that

total net income = $103,000 + $3,000 +$3,000

total net income = $109,000

7 0
2 years ago
Anna employs Mark to purchase for her a suitable site for a roller rink. Mark owns a huge site himself and sells it to Anna at f
mylen [45]

Answer:

Fiduciary

Explanation:

A fiduciary is a person that is appointed to protect the interests of his principal.

He should ensure that all transactions favor his principal maximally. It also entails full disclosure.

In this case, Mark was going to be the beneficiary of the sale. Even if the site was sold at fair market value, Mark has responsibility to fully disclose the source of the transaction to Anna.

Conflict of duty is when the fiduciary benefits from his position. This is not allowed.

8 0
3 years ago
Select the correct answers. At which stage of the product life cycle does a product reach its peak in terms of sales and profits
Ostrovityanka [42]

Answer:

D. maturity

Explanation:

A product life cycle is divided into four, namely, introduction,  growth, maturity, and decline. The concept of the product life's cycle is used as a decision-making tool to help management know when to expand to new markets, increase advertising, adjust prices, or redesign a product.

The maturity cycle is the third stage of a product life cycle. At this stage, sales revenues and sale volume reach the peak. The market get saturated with very few new customers. The product growth becomes stagnant. Profits may begin to decline at this stage.

3 0
2 years ago
In general, how long does it take to accomplish a long-term goal?
Mkey [24]

Answer:

The answer is D.more than a year

Explanation:

3 0
3 years ago
All definitions are correct except: Leverage: using other people's money. Equity buildup: As the loan is paid, the amount an inv
Verizon [17]

The definition that is not correct is that Leverage: using other people's money.

<h3>What is leverage?</h3>

When it comes to property, using leverage means borrowing money from a bank or financial institution.

Leverage is therefore not a simple matter of using other people's money, but rather using complex loan instruments from institutions.

Find out more on property mortgage at brainly.com/question/22598793.

#SPJ12

7 0
1 year ago
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