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MrRissso [65]
4 years ago
9

A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annual

ly. The coupon rate is 7 percent. What is the current price of this bond?
Business
1 answer:
algol [13]4 years ago
6 0

Answer:

$1,008.18

Explanation:

Using a financial calculator, you can calculate the price of this bond with the following inputs;

Maturity of the bond; N= 3

Face value ; FV = 1000

Annual coupon payment; PMT = 7% *1000 = 70

Yield to maturity ; I/Y = 6.69%

then compute the Price;  CPT PV = 1,008.182

Therefore, the current price is $1,008.18

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Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella $150,000 and assume her mortgage on the la
Anna11 [10]

Answer:

The cost basis for the land is equal under both options.

Explanation:

If Taylor pays Ella $150,000 in cash and assumes the mortgage of $100,000, the cost basis of the land will be $250,000 (= $150,000 + $100,000). If he decides to pay Ella the full amount of $250,000, that will also be the cost basis of the land.

The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).

8 0
3 years ago
4.You can buy a machine for $100,000 that will produce a net income, after operating expenses, of $10,000 per year. If you plan
Anon25 [30]

Answer:

$124,966.9

Explanation:

The computation of the market or resale value is shown below:

$100,000 = $10,000 ÷ (1.15^1) + $10,000 ÷ (1.15^2) + $10,000 ÷ (1.15^3) + $10,000 ÷ (1.15^4) + Resale value  ÷ (1.15^4)

$100,000 = $8695.65 + $7561.44 + $6575.16 + $5717.53 + Resale value ÷ 1.749006

Resale value ÷1.749006 = $71,450.22

So, the resale value is  = $124,966.9

We simply applied the present value formula

3 0
3 years ago
Suppose that in 1984 the total output in a single good economy was 12,000 buckets of chicken. Also assume that in 1984 each buck
xxMikexx [17]

Answer:

The GDP price index for 1984 using 2005 as the base year was 80%

Explanation:

The GDP price index:

X/100 = $16/$20

X = 80%

Therefore, The GDP price index for 1984 using 2005 as the base year was 80%

6 0
3 years ago
Anton is a salesperson at GF Motors Co. Ben, a customer, has an engine complaint with the car he purchased from GF Motors. Anton
posledela

Answer:

He should offer solution and gain agreement that the proposed solution is acceptable.

Explanation:

Achieving customer satisfaction is essential for any Company to be a successful entity. Anton is one of the representatives of Company and hence he needs to present the Company in good light before the customers. One of the ways of doing this is to pay attention to their grievances with the attempt to solve and redress the same as Anton should do in the above manner.

5 0
4 years ago
What is noncompetition?
Valentin [98]

Answer:

A lack of competition

Explanation:

Non = absence

competition = the act of competing in a event

Which means noncompetition would mean "a lack or a absence of competition."

Hope this helps.

8 0
3 years ago
Read 2 more answers
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