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
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

You might be interested in
What is the purpose of money? (1 point) it makes trading goods and services more efficient. it gives the government a way to tra
Natali5045456 [20]

it makes trading goods and services more effective i just took the test and got it right

4 0
3 years ago
Read 2 more answers
Which of the following is true about a business plan?
dusya [7]

Answer:

d

Explanation:

the plan can change from buget sponsors and othere factors

3 0
3 years ago
Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c
11111nata11111 [884]

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

8 0
3 years ago
New balance has many offerings. it makes the minimus line of shoes with a vibram outsole and revlite cushioning for those who wa
Colt1911 [192]
<span>The strategy of appealing to different types of customers in this way is an example of product definition.
</span><span>The product definition includes product concept, design requirements and specifications, features, target market.
</span>First the company must understand the customer<span> needs and then it should convert this understanding into technical requirements for a new </span>product<span>.</span>
8 0
3 years ago
Read 2 more answers
Which of the following types of work would a company be most likely to preform through outsourcing?
Goryan [66]

Answer:

B

Explanation:

A consistent, predictable amount of work

5 0
3 years ago
Read 2 more answers
Other questions:
  • Tidewater Fishing has a current beta of 1.16. The market risk premium is 6.8 percent and the risk-free rate of return is 2.9 per
    15·1 answer
  • Because the demand for wheat tends to be inelastic. True or False
    13·1 answer
  • In building a marketing presence on F a c e b o o k, you find that you have to spend a lot of time copying content from your T w
    8·1 answer
  • With manufacturing as the company's core strength, how will you develop a customer focus
    7·1 answer
  • In a process called __________, a customer visits a store to touch, feel, and even discuss a product's features with a sales ass
    7·1 answer
  • On July 1, Jerome received $200 in dividends from Melina Corporation on which it owns less than 20% of the voting stock. Complet
    9·1 answer
  • On May 1, 2018, Varga Tech Services signed a $75,000 consulting contract with Shaffer Holdings. The contract requires Varga to p
    9·1 answer
  • In order to formulate strategies that align with the mission some of the activities the organization will need to perform are
    12·1 answer
  • Countries establish internal economic zones in order to limit foreign investment. make solving disputes easier. have fewer econo
    15·2 answers
  • Jan has just found out that she has been appointed to raise and provide the personal care of the children of her best friend in
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!