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umka2103 [35]
3 years ago
12

Ford Motor Company bonds have 20 years remaining to maturity. Interest is paid annually, they have a $1000 par value, the coupon

interest rate is 8%, and the yield to maturity is 6.125%. What is the bond's market price?

Business
1 answer:
olga nikolaevna [1]3 years ago
7 0

Answer:

Bond Price = $1212.895577 rounded off to $1212.90

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.08 = 80

Total periods (n) = 20

r or YTM = 0.06125

The formula to calculate the price of the bonds today is attached.

Bond Price = 80 * [( 1 - (1+0.06125)^-20) / 0.06125]  +  1000 / (1+0.06125)^20

Bond Price = $1212.895577 rounded off to $1212.90

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Darell Hair​ Stylists's adjusted trial balance and statement of​ owner's equity follow.
il63 [147K]

Answer:

Total Assets = Total Liabilities and Stockholder's Equity = $20,200

Explanation:

An unclassified balance sheet is a type of balance sheet that does not present assets and liabilities under different categories. It only presents all assets in order of liquidity and liabilities in order of the shortness of their terms.

This can be prepared for this question as follows:

Darell Hair​ Stylists

Unclassifed Balance Sheet

At December 31​, 2018

<u>Particulars                                                       Amount ($)         </u>

Cash                                                                     1,000

Accounts Receivable                                            900

Office Supplies                                                      600

Equipment                                                         19,700

Accumulated Dep. - Equipment                     <u>  (2,000)  </u>

Total Assets                                                     <u>  20,200  </u>

Accounts Payable                                                 900

Interest Payable                                                    550

Notes Payable                                                    3,400

Common Stock                                                 10,650

Retained Earnings, Dec. 31, 2018                  <u>   4,700  </u>

Total Liabilities and Stockholder's Equity   <u>  20,200 </u>

Since Total Assets and Total Liabilities and Stockholder's Equity as it is normally required, that indicates that the unclasified balance sheet has been prepared accurately.

4 0
3 years ago
if both producers decided to trade with each other to stock their toy stores, the terms of trade that would benefit both geppett
True [87]

They would be willing to trade in the range of 2 puzzles per puppet to 5 puzzles per puppet.

Trade between two agents or countries allows the countries to enjoy the next total output and level of consumption than what would be possible domestically. Canada and Mexico can each specialize in the great they need a comparative advantage in and exchange with each other.

The terms of trade are dependent as long as they're between the 2 countries' opportunity costs. As an example, any amount of greater than 1/3 and fewer than 1 traded for 1 cotton shirt would represent interdependent terms of trade. The gains from trade are only supported by comparative advantage, not absolute advantage.

A person can have an absolute advantage in both goods or activities, and yet still gain from trade by specializing within the good or activity during which it's a comparative advantage. The theory of comparative advantage holds that whether or not one nation can produce all goods more cheaply than can another nation, both nations can still trade under conditions where each benefits.

Under this theory, what matters is relative efficiency. Even when one country has an absolute advantage altogether products, trade can still benefit either side. This can be because gains from trade come from specializing in one's comparative advantage.

learn more about trade: brainly.com/question/24473707

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7 0
2 years ago
A software developer enters into a contract with a new customer to sell a software license and perform installation services. Th
Troyanec [42]

Answer:

A. Three performance obligations: 1. software license 2. installation support 3. technical support services

Explanation:

Under the ASU 2014-09, the obligations of the software developer includes software licensing, installation support as well as technical support services.

This is necessary because the software being developed is peculiar to the company that the software is being made for and as such would require that the software gets licensed by the appropriate council or board, assist with installing the software until personnel have been trained and/or contract expires and also provide support services for the software should it run into any problem while in use.

Cheers

3 0
3 years ago
You want to have $18,000 in 9 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much wil
stiks02 [169]

Answer:

$10,503.59

Explanation:

This question requires us to find how much you have to deposit today if:

Fv = 18,000

Time = 9 years

PV= fv/(1 + i)^n

N = 9 X 12 = 108

I/y = 0.5%

PV = $18,000 / 1.005^108

= $10,503.59

Therefore what you have to deposit today is $10,503.59

5 0
3 years ago
Political forces that affect transportation businesses
bearhunter [10]

It is important to note that politics and the economy have effects on the transportation industry, as the industry is ever changing with new policies, regulations, or capacity issues.

Politicians and the policies they create dictate the US economy, effecting all industries. It is seen that the transportation industry saw effects because of the trade and tariff wars. The overall regulations depend largely on the economic and political outlook of the party in power.

For instance, a government that is inclined to pursue neo-liberal policies,  could pass more legislations favoring industries and big businesses, while a government inspired by socialism could push policies favoring small businesses.

Hence, the answer was given and explained above.

To learn more about politics and political party here:

brainly.com/question/12548909

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4 0
1 year ago
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