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9966 [12]
1 year ago
9

a bond has a face value of $1,000, an annual coupon rate of 7 percent, yield to maturity of 10 percent, and 20 years to maturity

. the bond's duration is
Business
1 answer:
rewona [7]1 year ago
5 0

The bond that has a face value of $1,000 has a duration of 10 years.

<h3>What is a bond?</h3>

A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.

To learn more about bond, visit:

brainly.com/question/28362992

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Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires six direct-labor
ruslelena [56]

Answer:

Standard hours allowed in May:

Field             = 6 hrs x 300 = 1,800 hrs

Professional = 8 hrs x 400 = 3,200 hrs

Total standard hours allowed 5,000 hours

Explanation:

In this case, we need to multiply the direct labour hours allowed for each product by the number of unit produced for each product.

6 0
3 years ago
At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,510,000. After the timber is cl
V125BC [204]

Answer:

A. $279,000

B. $27,900

Explanation:

A. Calculation for 2021 depletion of the timber tract

2021 Depletion=[($3,510,000 - $720,000) / 6.2 million] *$620,000

2021 Depletion=0.45x 620,000

2021 Depletion= $279,000

Therefore 2021 depletion of the timber tract is $279,000

B. Calculation to determine the depreciation of the logging roads

Depreciation=($279,000 / 6.2 million)*$620,000 Depreciation= 0.073*$620,000

Depreciation= $27,900

Therefore the depreciation of the logging roads is $27,900

5 0
3 years ago
Lance, Art, and Wayne have joined together to open a law practice but are struggling to manage their cash flow. They haven’t yet
mixas84 [53]

Answer:

This is very simple, they should start billing their clients right away.

You don't have to bill your clients for the full legal expenses, but they for sure need to start making some money.

It is very normal that new businesses don't get enough revenue to cover their operation expenses right away. Even for big corporations, like Amazon and FB, it may take years to reach the break even point.

When you open a business you have to keep some money as reserve to cover some expenses for at least a few months.

6 0
3 years ago
Cyber Security Systems had sales of 4,600 units at $65 per unit last year. The marketing manager projects a 30 percent increase
scoray [572]

Answer:

Net dollar sales projection for this year =   516,971.00

Explanation:

<em>Projected sales volume </em>

130%× 4,600= 5,980units

<em>Project selling price</em>

=140% × $65

= $91

<em>Total sales value </em>

= $91 × 5980units

=  $ 544,180.00

<em>Net dollar sales projection</em>

=  Total sales value -  Returned merchandise

= 544,180.00 - (5%  × 544,180.00 )

=  $ 516,971.00

Net dollar sales projection for this year =   516,971.00

3 0
3 years ago
Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special
11Alexandr11 [23.1K]

Answer:

The answer is false

Explanation:

Breadth, refers to the number of product lines  offered by a firm

6 0
3 years ago
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