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Usimov [2.4K]
3 years ago
9

Vangaurd Health System bonds have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If y

ou require a 7 percent return, what price would you be willing to pay for a Vangaurd bond
Business
1 answer:
Umnica [9.8K]3 years ago
8 0

Answer:

Price willing to pay=$1105.94

Explanation:

Annual Coupon Payment=$1,000*0.08

Annual Coupon Payment=$80

Calculating Present Value (PV) of Par Value:

PV=\frac{FV}{(1+i)^{20}}

Where:

i is the rate of return.

FV is par value

PV=\frac{\$1000}{(1+0.07)^{20}}

PV= $258.419.

Calculating PV of annual Coupon Payment:

PV=A\frac{1-(1+i)^{-20}}{i}

i is the coupon rate

A is the annual Payment

PV=\$80\frac{1-(1+0.07)^{-20}}{0.07}

PV=$847.521

Price willing to pay= Present Value (PV) of Par Value+ PV of annual Coupon Payment

Price willing to pay=$258.419+$847.521

Price willing to pay=$1105.94

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Solnce55 [7]

Answer:

Store A = 3.4521

Store B = 2.9589

Store C =  4.4384

Explanation:

Store A charges ADB method

purchase made on 5th first payment on 15th of 100

so from 5th to 15th Average daily balance =300 for 10 days

then from 15th to 4th for remaining 20 days average daily balance = 200

Average Daily Balance = (300*10+200*20)/30

Total finance charge = ADB*(APR*(Days/365))

=300*((0.18)*(10/365))+200*((0.18)*(20/365))

= 1.4795+1.9726=3.4521

Store B

Adjusted Balance Method uses adjusted balance to calculate the charges

Adjusted balance=Starting balance adjusted for credit and debit

Adjusted balance =300-100=200

Financial Charges = 200*(.18*(30/365))=2.9589

Store C

Previous Balance Method the interest is calculated on amount of balance carried from previous billing cycle

Balance Carried = 300

Charges =300*(.18*(30/365))= 4.4384

7 0
3 years ago
Read 2 more answers
Vessels Corporation's net income for the most recent year was $2,532,000. A total of 200,000 shares of common stock and 200,000
Usimov [2.4K]

Answer:

  • The earnings per share of common stock is closest to

D. $11.41.

Explanation:

To find the Price-Earning Ratio first, it's necessary to deduct from the Net Income the part corresponding to Preferred Stock,

which is , $2,532,000 - (200,000*1,25= $250,000) = $2,282,000

Then we calculate the Earning/Share Ratio : $2,282,000/200,000 = 11,41

Shares of Common stock outstanding    200.000     

Shares of Preferred stock outstanding    200.000*$1,25 = $250.000  

NET INCOME Available    $2,282,000  = $ 2,532,000  - $250,000

6 0
3 years ago
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Strike441 [17]

Answer: incomplete

Explanation: the client provided Kanska with incomplete details, in its requirement the client should have specified that the sizes of the files sent differ

7 0
3 years ago
Use the words innovative and ambitious in one sentence
Ilia_Sergeevich [38]

Answer:

As a team, and as company,  we try to be forward thinking, and ambitious in our approach with the technology , and innovative with new products to market to the consumer.

Explanation:

Able to use both words in a solid sentence structure.

8 0
3 years ago
Todd wants to be sure everyone gets the message about a special speaker coming to their next meeting, so he should use a lot of
Zepler [3.9K]

Answer:

True.

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Formatting is a feature found in a lot of word processing software applications such as Microsoft Word, Notepad, etc., which is designed to avail end users the ability to apply specific formatting options such as cut, bold, italics, underline, etc., to texts based on certain defined criteria.

Basically, it is used for highlighting, emphasize, comparing or differentiating between data (information) stored in a text document.

In this scenario, Todd wants to be sure that the message about a special speaker attending their next meeting is conveyed to the members.

Therefore, he should use a lot of unique formatting such as italics or underlining in the newsletter to be sent out, so as to get their attention.

7 0
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