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solong [7]
3 years ago
6

The Outlet needs to raise $3.2 million for an expansion project. The firm wants to raise this money by selling zero coupon bonds

with a par value of $1,000 that mature in 20 years. The market yield on similar bonds is 7.8 percent. How many bonds must The Outlet sell to raise the money it needs?
Business
1 answer:
Pani-rosa [81]3 years ago
3 0

Answer:

14,783.33 bonds

Explanation:

Given

Par value FV = $1000

n =20 * 2 =40

R= 7.80/2 = 3.90%

Price per bond:

price per bond :PV = \frac{FV/}{(1+r)^n}

     = \frac{000}{(1+0.039)^{40}}

      = \frac{1000}{4.619786467}

      = 216.46

No. of bonds to be issued = \frac{amount to raise}{ price per bond}

                                           = \frac{3,200,000}{216.46}  

                                            = 14,783.33 bonds

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The situation that corresponds with the graph of the market for gasoline-fuelled cars is the average price of crude oil decreased, causing the price of gasoline to decrease as well.

The graph is a diagram of the demand and supply curve for gasoline-fuelled cars. There is a rightward shift of the demand curve. A rightward shift of the demand curve indicates that the demand for gasoline-fuelled cars have increased.

<u><em>Factors that can lead to a rightward shift of the demand curve for gasoline-fuelled cars</em></u>

  • A decrease in the cost of a <em>complement good:</em> A <em>complement good</em> is a good that can be used together with a gasoline-fuelled car. An example of a <em>complement good</em> for gasoline-fuelled car is gasoline. If there is a decrease in the cost of gasoline, the demand for gasoline-fuelled cars would increase.

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3 0
2 years ago
The police need to have _____ to obtain a search warrant.
solniwko [45]

Answer:

a

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they need a absolute certainty to search your house like what

7 0
3 years ago
The following are budgeted data:Sales (units ) Production (units)April 15,000 18,000May 20,000 19,000June 18,000 16,000Two pound
zmey [24]

Answer:

Total= 36,800 pounds

Explanation:

Giving the following information:

Sales (units ) - Production (units):

May: 20,000 - 19,000

June: 18,000 - 16,000

Two pounds of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs.

Purchases for May= production for the month + desired ending inventory - beginning inventory

Production= 19,000*2 pounds= 38,000 pounds

Desired ending inventory= (16,000*2)*0.2= 6,400 pounds

Beginning inventory= (38,000*0.2)= (7,600)

Total= 36,800 pounds

3 0
3 years ago
The answer is c i just got it right on plato
Helen [10]

Answer:

the answer to what lol

Explanation:

3 0
2 years ago
Consider a firm with a daily demand of 100​ units, a production rate per day of 500​ units, a setup cost of​ $200, and an annual
podryga [215]

Answer: 980

Explanation:

The number of units of inventory that the storage area must be able to​ hold will be calculated as:

Demand = 100 × 300 = 30000

Production rate per day = 500

Setup cost = $200

Annual holding cost = $10

We then use the economic order quantity formula to solve and the answer will be gotten as 1225

The maximum inventory will now be:

= EQQ × (1-d/p)

= 1225 × (1-100/500)

= 1225 × ( 1 - 0.2)

= 1225 × 0.8

= 980

6 0
3 years ago
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