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OlgaM077 [116]
2 years ago
7

Vulcan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and

have a par value of $1,000. If the YTM on these bonds is 10.7 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Lana71 [14]2 years ago
6 0

Answer:

$880.72

Explanation:

Bond price will be calculated by following formula

Bond Price = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F x ( 1 + r )^-n ]

Bond Price = $87 x [ ( 1 - ( 1 + 0.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1 + 0.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $518.87 + $361.85

Bond Price = $880.72

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aleksley [76]

Answer:

The greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket

Explanation:

Given that the number of mangoes in one basket = 120 mangoes

Also, the number of mangoes in another basket = 168 mangoes

The greatest number of mangoes, X and Y that are to taken out from each basket so that both of them will empty simultaneously is found as follows;

We note that the ratio of the number of mangoes in both baskets are;

120:168 = 5:7

Therefore, we have;

5 × Y = 120

Y = 20/5 = 24

Similarly, we have;

7 × X = 168

X = 168/7 = 24

We can take 5 mangoes from one basket and 7 mangoes from the other basket 24 times, for both mangoes to empty the same time

We can also take 5×12 = 60 mangoes twice from one basket and 7 × 12 = 84 mangoes twice from the other basket to empty the baskets

We can also take 120 mangoes one from one basket and 168 mangoes one from the other basket to empty the baskets.

Therefore, the greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket.

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3 years ago
Your cell phone plan costs ​$34.99 per month plus ​$0.14 for each text message you send or receive. You have at most ​$38 to spe
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what is it called when raising the price of a good will increase the firm's total revenue, decreasing the price will decrease th
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3 years ago
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When a business makes a sale on account it creates an a/r, which stands for accounts receivable. Accounts receivable are categorized as a current asset on the balance sheet.

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