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
In its focus on bottom-line financial value, the ________ approach offers limited guidance for go-to-market strategies and does
solniwko [45]

Answer:

B. Customer Equity

Explanation:

In its focus on bottom-line financial value, the customer equity approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves. Customer equity can be defined as the total value of all the customers of any firm. It means any firm will have more customer equity if has large number of customers who make frequent purchases as well. Customer loyalty is directly proportional to the customer equity, more is the customer loyalty, the more will be the customer equity of any brand. Although it is very much important for any business but it does not tell about the go-to market strategies and competitive moves that what business you should be in and what business you could be in.

8 0
4 years ago
Archie Co. purchased a framing machine for $60,000 on January 1, 2021. The machine is expected to have a four-year life, with a
horrorfan [7]

Answer:

$16,500

Explanation:

Depreciation is a method used in expensing the cost of an asset.

sum-of-the years'-digits method = (useful life remaining / sum of years) x (cost of asset - residual value)

sum of the years  = 1 + 2 + 3 + 4 = 10

(3 / 10) x ($60,000 - $5,000) = $16,500

3 0
3 years ago
12. Market efficiency and perfect price discrimination Perfect price discrimination is efficient because it converts what would
Nady [450]

Market efficiency is achieved with perfect price discrimination because what would have been dead-weight loss is converted into consumer and producer surplus through perfect price discrimination.

For the market, efficiency is achieved because the dead-weight loss is converted into producer and consumer surpluses, with enormous benefits to the society.

Thus, perfect price discrimination achieves allocation efficiency for both the producer and the consumer (or the society as a whole).

Learn more about market efficiency and price discrimination here: brainly.com/question/10234084

6 0
3 years ago
Read 2 more answers
Both Mia and Mario produce only the item in which they have a comparative advantage. Then they trade one pasta for one pizza. Be
Molodets [167]

The total gains from trade are​ 66 dishes of pasta and​ 66 pizzas an hour.

Explanation:

A calculation of the net income from trade is the amount of the surplus of the customer and the earnings of the manufacturer or, more generally, the enhanced efficiency of the specialization of production with the subsequent export.

Trade gains can also apply to the net benefits of reducing barriers to trade, such as import tariffs, for a region.

To measure the income, take the price at which you sell the investment and deduct from it the price you originally charged for it. Now that you've got the income, split the income by the original value of the investment. Finally, subtract the response by 100 to adjust the percentage of your investment.

4 0
3 years ago
A municipal bond carries a coupon rate of 4.25% and is trading at par. What would be the equivalent taxable yield of this bond t
max2010maxim [7]

Answer and Explanation:

Municipal bond rate = Taxed bond rate × (1-Tax rate)

4.25 = Taxed bond rate × ( 1 - 0.35)

Taxed bond rate = 6.54

4 0
3 years ago
Other questions:
  • On a mobile device, the operating system resides in firmware, and is therefore, a/an _______________ os.
    9·1 answer
  • Heap Corporation is considering an investment in a project that will have a two year life. The project will provide a 10% intern
    7·1 answer
  • . List and describe two types of cues that people use when speaking to others. (2 points)
    7·1 answer
  • Nakato, a South Asian country, exported goods worth $500 million and imported goods worth $400 million in the last fiscal year.
    8·2 answers
  • Sharon had spent months carrying out her sociological experiments. she had collected a ton of data. what was sharon's next step?
    10·1 answer
  • A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number o
    14·2 answers
  • Compare Franklin Roosevelts ( a democrat) actions concerning the economy in the 1930s with Ronald reagans (a republican) actions
    9·1 answer
  • At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is $3,000 () before adjustment.
    11·1 answer
  • You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance
    15·1 answer
  • A company can have many different levels of measuring KPIs. What types of KPIs can be measured besides company-level, campaign-l
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!