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AnnyKZ [126]
3 years ago
11

Wesimann Co. issued 15-year bonds a year ago at a coupon rate of 7.5 percent. The bonds make semiannual payments and have a par

value of $1,000. If the YTM on these bonds is 5.8 percent, what is the current bond price?
Business
1 answer:
brilliants [131]3 years ago
7 0

Answer:

$1,161.46

Explanation:

In order to determine the current bond price we can use an excel spreadsheet and the present value formula: =PV(Rate,Nper,PMT,FV)

where:

  • Nper = 14 x 2 = 28 (15 year bond issued 1 year ago = 14 years)
  • Rate = 5.8% / 2 = 2.9% (semiannual payments)
  • PMT = ($1,000 x 7.5%) / 2 = $37.50
  •  FV = $1,000 (face value of bonds)
  • PV = ?  

Current price =PV(Rate,Nper,PMT,FV) =PV(2.9%,28,37.50,1000) = $1,161.46

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Many economists believe that the trend toward greater wage inequality across the u. S. Economy was primarily caused by _________
Margaret [11]

The inequality across the u. S. Economy on greater wage inequality was primarily caused by the new technologies.

<h3>What is wage inequality?</h3>

Wage inequality refers to the difference in the distribution of income among individuals, groups, populations or countries. It is a measure that highlights the gap between different individuals' or households' disposable income in a particular year.

Causes of wage inequality are:

  • Technological change
  • Globalization
  • The decline of unions
  • The eroding value of the minimum wage

Hence, the inequality across the u. S. Economy on greater wage inequality was primarily caused by the new technologies.

Learn more about wage here: brainly.com/question/25273589

8 0
2 years ago
Do you think chefs give much thought to the nutritional value of the dishes they create? Explain
padilas [110]
No. Its whats cheap, which is usually artificial ingredients with no nutritional value
4 0
3 years ago
Read 2 more answers
What is the difference between global trade and domestic trade?
Tcecarenko [31]
Domestic trade is trade<span> occurring inside a particular country, while global is between nations, think international.</span>
4 0
3 years ago
Read 2 more answers
International marketing can be defined as
malfutka [58]

Answer: Option B

           

Explanation: As the name suggests, international marketing refers to the process under which a company uses various marketing tools to operate their marketing activities in more than one country.

Generally, different marketing tills and strategies are implemented for different countries as the preference and needs of individuals differs all around the globe.

For example- Starbucks is a popular brand for their variety in coffee but in China they market their tea products more due to general preference of individuals towards tea more than coffee.

6 0
2 years ago
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi p
alexgriva [62]

Answer:

Kokomochi

The incremental earnings associated with the advertising campaign in its first year is:

= $0.3 million.

Explanation:

a) Data and Calculations:

Advertising campaign cost = $5.5 million

                                                  Mini Mochi     Other Products   Total

                                                      Much

Incremental sales revenue        $8.2 million      1.8 million        $10 million

Incremental cost of goods sold   5.2 million      1.4 million           6.6 million

Incremental gross profit            $3.0 million      0.4 million          3.4 million

Advertising cost                                                                              3.1 million

Incremental earnings associated with the advertising campaign = $0.3 million

Advertising cost apportioned to:

This year = $8.2/$14.4 * $5.5 million = $3.1 million

Next year = $6.2/$14.4 * $5.5 million = $2.4 million

6 0
3 years ago
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