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serious [3.7K]
4 years ago
6

Your firm offers a 10-year, zero coupon bond (i.e., coupon rate is 0%). The yield to maturity is 8.8 percent. What is the curren

t market price of a $1,000 face value bond?
Business
1 answer:
Kamila [148]4 years ago
6 0

Answer:

The correct answer to the following question is $430.241

Explanation:

Zero coupon bond which are also know as pure discount bond, are those bonds which are issued at discount and makes no periodic interest payments to the bearer.

Given information -

Face value at maturity - $1000

Yield to maturity - 8.8%

Number of years till maturity - $10

Current market price - maturity value / (1+ i) ^n

where i = yield to maturity, n = Number of years till maturity

= $1000 / (1+8.8%)^10

= $1000 / (1.088)^10

= $1000 / 2.32428

= $ 430.2407

= $430.241 ( approximately )

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Which has a higher flow rate? 10 customers arriving over two hours or 10 customers arriving over three hours?
Tcecarenko [31]

The one that gives a higher flow rate is: 10 customers over 2 hours. The flow rate is 5 customers per hour.

Flow rate is defined as the number of flow units that pass through the business process per unit time.

The flow unit can be money, customers, products, parts, services, etc.

Example of flow rate is number of customers serviced per hour, number of parts produced per minute, etc.

From the definition, the flow rate can be expressed as:

             Flow rate = number of flow unit / time interval

There are 2 scenarios in the given problem.

  • Scenario 1:

Flow unit = 10 customers

Time interval = 2 hours

Hence, the flow rate in scenario 1 = 10/2 = 5 customers per hour

  • Scenario 2:

Flow unit = 10 customers

Time interval = 3 hours

Hence, the flow rate in scenario 2 = 10/3 = 3.33 customers per hour

By comparing the above scenarios, the one that gives higher flow rate is scenario 1, 10 customers over 2 hours.

Read more about flow rate here:

brainly.com/question/14896563

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4 0
2 years ago
As the vice president of sales for Dunder Mifflin, Inc., a company that manufactures and sells paper to commercial offices, it h
nirvana33 [79]

Answer: Create Focus Groups.

Explanation:

Creating a Focus group out of the Customers that use the Scranton branch would help Dunder Milfflin find out a more specific issue that they are complaining about.

Should customers be brought together and asked what they think should be done to improve service, you will find that many complaints are similar which would enable a better way to tackle the issue faster opposed to tackling each issue as they come.

This Focus Group method is very efficient and accurate as the problems come from the horse's mouth so to speak and Multiple problems can be then be found and categorized separately.

7 0
3 years ago
This condition causes people to struggle to sequence the sounds in syllables and words, which means that
Mice21 [21]
The answer is stuttering if not it is tongue tied
7 0
2 years ago
Read 2 more answers
Sharon spent the weekend with her friend amelia. amelia proposed a plan for shoplifting cd's from a local music store. sharon wa
Hatshy [7]
In the given situation, Amelia is wrong. Anyone who is fully aware and  supported any criminal acts is considered a violator of the law. All people who participated in a criminal act is guilty of the crime. 

However, it will only be punishable if there are witnesses and evidence.
8 0
4 years ago
On January 2, 2013, Gant Co. purchased a franchise with a useful life of five years for $60,000 and an annual fee of 1% of franc
inysia [295]

Answer:

$48,000

Explanation:

The computation of the amount that should be reported as the intangible asset franchise is shown below

= Purchase value of franchise - amortization per year

= $60,000 - ($60,000 ÷ 5 years)

= $60,000 - $12,000

= $48,000

hence, the  amount that should be reported as the intangible asset franchise is $48,000

6 0
3 years ago
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