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SOVA2 [1]
3 years ago
8

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today,

the market interest rate on these bonds is 5.5%.
What is the current price of the bonds, given that they now have 14 years to maturity?

a) $1,077.01 b) $1,104.62 c) $1,132.95 d) $1,162.00 e) $1,191.79
Business
1 answer:
denis-greek [22]3 years ago
4 0

Answer:

e) $1,191.79

Explanation:

In order to find the price of a bond we need to know the future value of the bond, the interest rate on the bonds, the coupon payments and the time to maturity. In this case the future value of the bond is 1,000, the interest rate is 5.5%, the time to maturity is 14 years and the coupon payments are 7.5% which are (0.075*1,000)=75. Now we input all these values in a financial calculator and compute the present value/price.

FV= 1,000

I=5.5

N=14

PMT= 75

Compute PV=1,191

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Which of the following is a characteristic of a partnership? a.The partners have limited liability. b.The partnership is subject
Ulleksa [173]

Answer:

The correct answer is letter "C": The partnership has a limited life.

Explanation:

A partnership is an organization with two or more members running a business. They share the profits in percentage terms in proportion to their partnership value. There are two types of partnerships: general partnerships (<em>unlimited liability</em>) and limited partnerships (<em>liability proportional to the contribution to the partnership</em>).

The partnership dissolves and a new partnership is created when one of the partners is removed, retired or deceased or even when a new partner is introduced. Thus, <em>partnerships have a limited life</em>.

8 0
3 years ago
Joey notices that people always compliment his Dad on the nice suits that he wears. His Dad owns a business in town. People alwa
liberstina [14]

Answer: Orientation to internal, unique self  

Explanation: In simple words, orientation refers to the process of determining the position of one self or the others with respect to a particular situation.

In the given case, Joey has to make a decision that impacts his personal life and he has to make it himself. Therefore, the confusion he is having about the decision depicts that he is at the stage of internal orientation.

7 0
3 years ago
A researcher was interested in the relationship between the number of texts sent in a day and the number of e-mails sent in a da
mixas84 [53]

Answer:

A. 14

Explanation:

the researcher claims that the width of the interval would have been smaller if the sample had been different, and in this case different refers to larger. The original sample included only 15 people, so in order to increase the data sample, you must include more than 15 people. That is why 14 doesn't make sense.

3 0
3 years ago
Blackwelder factory produces two similar products-small lamps and desk lamps. the total plant overhead budget is $640,000 with 4
olasank [31]

Answer: b. $188,800 Blackwelder Company will allocates $188,800 to desk lamp production if the actual direct hours is 118,000.

We have the following:

Total Plant Overhead = $640,000

Total Estimated Direct labour hours = 400,000 hours

Actual labour hours for desk lamp = 118, 000 hours

Overhead allocation rate = \frac{Total overhead}{Total estimated direct labor hours}

Overhead allocation rate = \frac{640,000}{400,000}

Overhead Allocation Rate =  $1.6

Factory overhead allocated = Overhead allocation Rate * Actual labour hours [/tex] [tex] Factory overhead allocated = $188,800 (1.6 * 118,000)

3 0
3 years ago
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jeyben [28]

Several of the readings highlight the differences between firms in realizing IT value. The biggest factors in creating these differences are growth prospects , earning history , location, concentration, staff and management, reputation etc.

Growth prospects - this factor looks at how much potential the business has to grow in the future.

Earning history - In earning history, income is a major factor in valuation of any business.

The importance of IT value is the first way to increase value is simply to increase the speed you deliver the kind of value people are willing to, offer better quality.

Learn more about IT here

brainly.com/question/13171394

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7 0
2 years ago
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