What is frim defion please help

Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemp

finlep [7]

Answer:

$ 915.71

Explanation:

In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.

=nper(rate,pmt.-pv,fv)

rate is the semiannual interest rate of 6% (12%*6/12)

pmt is the semiannual interest=$1000*8.3%*6/12=$41.50

pv is the current price at $813.04

fv is the face value of $1000

=nper(6%,41.50,-813.04,1000)= 16.00

The years to maturity=16/2=8 years

The years to maturity of second bond=8+3=11 years

price of second bond=-pv(rate,nper,pmt,fv)

rate is 6%

nper is 11 years multiplied by 2= 22

pmt =5.3%*$1000=$53

fv is $1000

=-pv(6%,22,53,1000)=$915.71

5 0

3 years ago

Read 2 more answers

Assume a contract for the sale of goods specifies that payment is to be made 15 months after delivery of a product. The seller i

Ede4ka [16]

Answer:

The correct Answer is B.

The seller is likely to recognize interest revenue.

Explanation:

What is interest revenue?

Interest revenue is the earnings that an entity receives from any investments it makes, or on debt it owns.

The Logic here posits that for every money invested or loaned out, some interest should accrue. The goods which have been taken delivery of to the buyer becomes a debt which normally should be paid with no strings attached.

However, because of the term in the contract which stipulates, that the payment will be made after 15 months, the concept of the <em>Time Value of Money</em> which is the bedrock of the Principle of Interest Revenue engages.

The Time Value of Money is a basic financial concept that holds that money in the present is worth more than the same sum of money to be received in the future. This is true because money that you have right now can be invested and earn a return, thus creating a larger amount of money in the future.

It therefore follows that if a party in a business transaction is being asked to forfeit the time value of money then it ought to be compensated for such, hence Interest Revenue.

Cheers!

8 0

3 years ago

Harper Electronics Corp. was forced to pay off the government representative of the foreign country before Harper Electronics wa

Sergio [31]

The factor that affected the company's cost of doing business based on having to pay a government official off is a<u> Political factor. </u>

<h3>What are political factors affecting business?</h3>

These relate to the impact of the government of a nation on a business venture.
Includes taxes, relevant laws, and payments to the government.

Paying off the government of a nation to engage in business therefore falls under the political factor because it involves dealing with the government of the nation.

In conclusion, this is the political factor.

Find out more on factors affecting business at brainly.com/question/17961245.

7 0

3 years ago

3.

ValentinkaMS [17]

Answer:

c) controlling the work of others.

Explanation:

8 0

4 years ago

The rise of internet marketing has become particularly important in doing business in the b2b markets.

Jobisdone [24]

<span>This is very true. Business-to-Business markets heavily rely on internet marketing and using internet vendors to procure goods and services. This allows for faster transaction times and more ease in getting what is needed to keep a business competitive in today's climate.</span>

8 0

4 years ago