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AnnyKZ [126]
4 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]4 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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Answer:

60 billion

Explanation:

This might help you: The National Health Care Anti-fraud Association (NHCAA) conservatively estimates that 3 percent of all health care spending, or $60 billion, is lost to health care fraud.

Hope this helps :)

Have a nice day!

8 0
2 years ago
Mays, Inc. had net income for 2014 of $1,060,000 and earnings per share on common stock of $5. Included in the net income was $1
Rainbow [258]

Answer:

The dividends on common stock in 2014 for Mays, Inc was:

Dividends paid=$2650

Explanation:

1. You must follow the formula below to find out the Dividends Paid by Mays inc,

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Dividends paid= (25%/100)x$ 1'060.000

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8 0
3 years ago
When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter
MissTica
When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter <span>shifted to the right. The correct option among all the options that are given in the question is the second option. I hope that this is the answer that has come to your help.</span>
4 0
4 years ago
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If the market price of each camera case is $8 what is the profit-maximizing quantity? 300 units 400 units 500 units 600 units
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3 years ago
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3 years ago
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