1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
astra-53 [7]
3 years ago
10

Morin Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $60. The mar

ket requires an interest rate of 8.0% on these bonds. What is the bond's price
Business
1 answer:
m_a_m_a [10]3 years ago
7 0

Answer:

= $865.79

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).</em>

Value of Bond = PV of interest + PV of RV

The value of bond of Morin Company can be worked out as follows:

Step 1

PV of interest payment

PV = A ×  (1-(1+r)^(-n))/r

r- 8%, n- 10, A- interest payment = 60

PV of interest

= 60× (1- (1+0.08)^(-10)/0.08

= 402.60

Step 2

<em>PV of Redemption Value</em>

PV = RV × (1+r)^(-n)

= 1,000 × (1.08)^(-10)

= $463.193

Step 3

<em>Price of bond</em>

= $536.80 + 463.19

= $865.79

You might be interested in
intext:"A company has net sales of $1,200,000 and average accounts receivable of $400,000. What is its accounts receivable turno
Paraphin [41]

Answer:

i think it would be 4x

Explanation:

im dumb

6 0
3 years ago
The nominal interest rate is 6 percent and the inflation rate is 3 percent. What is the real interest rate
rusak2 [61]

Answer:

3%

Explanation:

real interest rate ≈ nomial interest rate - inflation

ratereal interest rate ≈ 6 - 3 ≈ 3%

Please mark as brainliest if you find this useful, I need it to rank up

5 0
2 years ago
The term used to describe the degree to which tasks in an organization are subdivided into separate jobs is called ________.
lyudmila [28]

Answer:

work specialization

Explanation:

The term being described is known as work specialization. This term, also known as division of labor, is mainly used by companies in order to divide a large job position into smaller, single tasks that can be completed by one individual. The individual that is given such a task is trained thoroughly in order for them to become a specialist in that task and output more precise workloads.

6 0
3 years ago
A product manager is eager to develop a new product idea. To gain approval to do so, the product manager orders the research tea
vladimir1956 [14]

Answer:

The answer is b. Advocacy research

Explanation:

Advocacy research is carried out with the intention of providing evidence and arguments that can be used to support a particular cause or position.

8 0
3 years ago
Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respec
Allushta [10]

Answer: The answer is e. $215,000.

Explanation: Based on the information provided in the question, see the cash flows statement below:

XYZ Cash Flows Statement

Net income                                                         $180,000

Increase in account receivable                           (15,000)

Increase in accounts payable                              50,000

Cash flows from operating activities             $215,000

  • Note that the purchase of equipment of $50,000 cash would not be considered under cash flows from operating activities but would rather be considered under cash flows from investing activities.
  • Increase in accounts receivable means outflow of cash while increase in accounts payable means non-payment of debt, that is, inflow of cash.
7 0
2 years ago
Read 2 more answers
Other questions:
  • Consider the following cases.
    7·1 answer
  • Mighty Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Mighty Corporation
    8·1 answer
  • Michael is the project manager in a Manufacturing Company he wants his organization to use technology for higher revenue and pro
    8·2 answers
  • Preferred stocks share characteristics with which of the following? A-Common stocks and corporate bonds. B-Real estate and commo
    7·2 answers
  • Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts
    12·1 answer
  • Hamish Life, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler,
    11·1 answer
  • Jacob Smith overheard that Joe Dunn was blowing the whistle on managers at XYZ Company and that a full story would appear in Sun
    13·1 answer
  • Which of the following behaviors is likely to be considered unethical?
    8·1 answer
  • Would anyone like to ............ watch anime
    11·1 answer
  • Profit on sale of fixed assets is used to creat
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!