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ira [324]
3 years ago
5

Suppose a​ seven-year, $ 1 comma 000 bond with a 7.8 % coupon rate and semiannual coupons is trading with a yield to maturity of

6.50 %.If the yield to maturity of the bond rises to 7.20 % ​(APR with semiannual​ compounding), what price will the bond trade​ for?
Business
1 answer:
n200080 [17]3 years ago
4 0

Answer:

The price of the bond is  1,072.19  

Explanation:

The price at which the bond trades for can be computed using the pv formula in excel which tries to discount to present value all the cash inflows receivable from the bond into today's present worth.

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of 6.50% divided by 2 since the bond pays interest semi-annually i.e 3.25%

nper is the number of coupon payments the bond would pay which is 7 years multiplied by 2 i.e 14

pmt is the semi-annual interest of the bond which is $1000*7.8%/2=$39

the fv is the face value of the bond of $1000

=-pv(6.5%/2,14,39,1000)=$1,072.19  

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Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,0
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Answer:

Accounting profit = $45,000

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Explanation:

The computation of accounting profit and economic profit is shown below:-

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= $45,000

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Which statement applies to the commodities exchange?
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Answer:try D

Explanation:

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The most likely promotion objective among companies in the Top 20 of sports spending is to inform and educate because they are i
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The correct answer to the following question is option D) maturity maximize outlets .

Explanation:

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3 years ago
The following are several figures reported for Allister and Barone as of December 31, 2018.
IrinaVladis [17]

Answer:

1) INVENTORY =  $540,000 +$340,000 - (188000*0.15*40.30%/140.30%)

                        = $880,000- $1800 = $878200

2 Sales =$1,080,000 + $880,000 -$188,000= $1,772,000

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4) Operating expenses = 250000+320000+ 12800 = $582,800

5) Net income attributable to NCI = $10,540

Explanation:

In the closing there is an unrealised profit of(188000*15%) = $28200 * 40.30%/140.30% =$8100

to get the mark up of 40.30% We take [(188000-134000)/134000]*100

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5) Calculations

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3 years ago
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LO 8.4What is the main difference between a flexible budget and a master budget?
zhannawk [14.2K]

Answer:

Flexible budget and master budget are very different.

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