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
Simora [160]
2 years ago
7

Trew Company plans to issue bonds with a face value of $ 900,000 and a coupon rate of 6 percent. The bonds will mature in 10 yea

rs and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. Determine the issuance price of the bonds assuming an annual market rate of interest of 8.5 percent.
Business
1 answer:
luda_lava [24]2 years ago
8 0

r = (8.5:2) = 4.25% (because interest is paid semiannually)

n = 10 * 2 = 20 (compounded twice a year)

Present value of principal

(900000 * PVF (4.25% , 20))

391491

900000*0.43499)

Interest Present Value

(900000*6%*6/12)*PVA(4.25%,20))

358949

27000*13.2944)

Issue Price 750440.

Interest is the amount paid by the borrower or deposit-taking financial institution to the lender or depositor in excess of the repayment of the principal (that is, the amount borrowed) at a specified rate.

learn more about Interest here;  brainly.com/question/25545513

#SPJ4

You might be interested in
According to virginia satir, the single factor determining the kinds of relationships we make with others is
Lilit [14]

According to Virginia Satir, communication is <span>the single factor determining the kinds of relationships we make with others.

</span><span>Virginia Satir was an American author and social worker, known especially for her approach to family therapy and her work with family reconstruction.</span>

3 0
4 years ago
Has any questions or problems.
bearhunter [10]

Answer:

Customer relationship management (CRM).

Explanation:

CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, these employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving marketing communications, sales support, technical assistance and customer service so as to bring satisfaction to the customers.

Hence, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.

5 0
3 years ago
You will receive annual payments of $800 at the end of each year for 12 years. The first payment will be received in Year 3. Wha
Aneli [31]

Answer:

Option (d) $5,549.96

Explanation:

Data provided in the question:

Annual payments = $800

Time, n = 12 years

Discount rate, r = 7% = 0.07

Now,

PV2 = Annual payments × ((1 - (1 + r)⁻ⁿ)) ÷ r ) × (1 + r)

=  $800 × ( (1 - ( 1 + 0.07)¹²)) ÷ 0.07) × (1 + 0.07)

PV2 = $6,354.15

Therefore,

Present value today = PV2 ÷ (1 + r )²

= $6,354.15 ÷ (1 + .07)²

or

= $5,549.96

Hence,

Option (d) $5,549.96

3 0
3 years ago
In the information age, the obligations that individuals and organizations have concerning rights to intellectual property fall
Allisa [31]

Answer:

a) property rights and obligations.

Explanation:

In the case of the information age, the liabilities at which the individuals and the organizations would be concerned related to the intellectual property could decline that lies with the moral dimension of the property rights and its liability as the intellectual property includes the property rights

SO as per the given situation, the option a is correct

7 0
3 years ago
After prospects have been identified and qualified, the next step in the selling process is _________. this step requires the sa
svp [43]
After prospects have been identified and qualified, the next step in the selling process is the preapproach. This step requires the salesperson to learn as much as <span>possible about the potential customers wants and needs.</span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • a customer has invested 20000 in a variable annuity. in the first year nav increases to 21100 at what rate wsill 1100 gain be ta
    10·1 answer
  • If you case a car accident, which type of insurance will require you to pay the least out of pocket?
    10·1 answer
  • A lender demands an interest rate in part to compensate for any expected ___________, so that the money that is repaid in the fu
    6·1 answer
  • If the absolute value of the price elasticity of demand is greater than 1:
    14·1 answer
  • Which hmmwv variant is the primary vehicle carrying the s250 electrical equipment shelter?
    13·1 answer
  • The owner of a valuable painting hired professional movers to transport it to an auction house when she decided to sell it. As t
    15·1 answer
  • Microsoft Windows at one time would have been considered this type of monopoly?
    12·1 answer
  • One of the most important activities of entrepreneurs is identifying their customers. This includes understanding when consumers
    8·1 answer
  • Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only six months old but,
    11·1 answer
  • What is the correct definition of harassment?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!