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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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The personnel director at a large company studied the eating habits of the company's employees. the director watched and recorde
valina [46]

The answer is<u> "An experiment."</u>


An experiment refers to a controlled study in which the scientist endeavors to comprehend circumstances and end results connections. The examination is "controlled" as in the analyst controls (1) how subjects are relegated to gatherings and (2) which medicines each gathering gets.  

In the analysis stage, the specialist thinks about gathering scores on some reliant variable. In view of the investigation, the scientist makes an inference about whether the treatment (independent  variable) causally affected the dependent variable.

4 0
3 years ago
It is important to strengthen the presentation through the use of charts, catalogs, brochures, pictures, ads, illustrations, map
aliina [53]

Answer:

Presentations are a vital source of marketing a product. The sales team can impact a client by its presentation skills. The presentation is impacting if it contains graphs, charts and pictures. This enables the client easy comparison among other products.  

Explanation:

The presentations helps the sales team to market their product easily. The brochures, pictures, catalogs and graphs are used for easy illustrations. They help the managers and clients to easily understand the product features and its performance over years with comparison of other products.

7 0
3 years ago
"A new issue corporate bond with dated date of June 1st is bought from the underwriter with settlement occurring on Monday, June
Tema [17]

Answer:

27 days

Explanation:

The accrued interest is calculated by beginning the count of days from the dated date of the corporate bond up until the settlement, without including the settlement date.

From 1st June to 27th June, a day before settlement date makes 27 days, as a result, the number of days in respect of which interest is owed to the underwriter is 27 days

4 0
3 years ago
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturi
Aleonysh [2.5K]

Answer:

Price of the bond = $4,122.36

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Yan Yan Corp.  be worked out as follows:  

Step 1  

<em>PV of interest payments  </em>

Semi annul interest payment  

= 4.6% × 5,000 × 1/2 = 115

Semi-annual yield = 4.1%/2 = 2.05  % per six months  

Total period to maturity (in months)   = (2 × 21) = 41 periods

PV of interest =  

115  × (1- (1+0.0205)^(-21)/0.0205)=1,946.47

Step 2  

<em>PV of Redemption Value  </em>

= 5000 × (1.0205^(-41)   = 2,175.89

<em>Step 3:Price of the bond </em>

Total present Value = 1,946.47  +  2,175.89  = 4,122.36

Price of the bond = $4,122.36

 

5 0
3 years ago
Read the short scenario and answer the question that follows. ​Lisa's credit card balance this month is​ $969.16. Her APR​ (annu
mario62 [17]

Answer:

76 months

Explanation:

If Lisa only pays the $20 minimum monthly payment, it will take her 76 months to repay her debt (6 years and 4 months). She will also end up paying almost $540 in interest.

If you have a credit card it is never a good idea to pay only the minimum monthly payment since you will end up paying a lot of interest and usually other fees and charges apply.

5 0
3 years ago
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