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nasty-shy [4]
4 years ago
8

Wine and Roses, Inc., offers a bond with a coupon of 8.0 percent with semiannual payments and a yield to maturity of 8.66 percen

t. The bonds mature in 16 years. What is the market price of a $1,000 face value bond? pmt
Business
1 answer:
horrorfan [7]4 years ago
5 0

Answer:

The market price of a $1,000 face value bond is $944.

Explanation:

Market Value of Bond is calculated by following formula.

Coupon Payment = $1000 x 8% = $80

r = YTM = 8.66% = 0.0866

Face value = $1,000

n = number of periods = 16 yeasr

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

P = $80 [ (1 - ( 1 + 0.0866 )^-16 ) / 0.0866 ] + [ $1,000 x ( 1 + 0.0866 )^-16]

P = $80 [ (1 - ( 1 + 0.0866 )^-16 ) / 0.0866 ] + [ $1,000 x ( 1 + 0.0866 )^-16]

P = $679.19 + $264.78

P = $943.97

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svlad2 [7]

The bankruptcy public record is deleted from the credit report either seven years or 10 years from the filing date of the bankruptcy, depending on the chapter you filed. Chapter 13 bankruptcy is deleted seven years from the filing date because it requires at least a partial repayment of the debts you owe

7 0
3 years ago
When Myra first became eligible for Medicare, she enrolled in Original Medicare (Parts A and B). She is now 67 and will turn 68
Temka [501]

<u>Answer:</u>

<em>Medicare refers to a</em><em> program for the individuals</em><em> of and above the age of 65 with certain disabilities and diseases. Medicare the FFS scheme, that is, Fee-for-Service covers two parts, Part A and Part B.   </em>

<u>Explanation:</u>

Part A includes Nursing care whereas Part B includes Doctor's assistance. In the given case, Kelly is entitled to Part A, but not to Part B. Thus, in order to join a Medicare health plan, she also must enrol in Part B.  

7 0
3 years ago
An awareness of the impact of today's actions on tomorrow's costs is a concept that underlies which of the following notions? Se
tester [92]

Answer:

The correct answer is A. Life-cycle costs

Explanation:

In the life cycle of costs, all the costs associated with the production of a good or the provision of a service over a given period of time interfere. For this reason, professionals in charge of this area should consider not only the information directly related to production, but also the costs associated with the maintenance of the product during its useful life.

5 0
4 years ago
What are some potential problems or limitations with this approach of using tesla as a representative company for smi? what impr
patriot [66]

It is challenging to calculate the company's cost of equity due to its private ownership. Therefore, it seems sense that you would wish to assess the cost of capital for SMI using the pure play approach. Tesla has been picked as the representative business.

To ensure as much resemblance when determining the riskiness of the project, the pure play strategy simply advises that we select a public firm that is 'purely' engaged in the type of work or projects we are going to carry out.

Tesla appears to have been chosen as a representative by SMI because it is a vehicle manufacturer and works in battery development.

Improvements

1) Decide on an appropriate pure play business. in and of itself, challenging. By then looking for pure play companies that manage those kinds of projects, they may identify distinct projects in their portfolio and discover appropriate betas for each of their different initiatives.

2) The analysis of options and futures on the shares of the publicly traded company that is utilized for pure play can be used to determine forward-looking betas. This will resolve the problem with betas that look ahead.

To learn more about Tesla here

brainly.com/question/23838761

#SPJ4

8 0
2 years ago
Lyons Company deducts insurance expense of $210,000 for tax purposes in 2021, but the expense is not yet recognized for accounti
Goryan [66]

Answer:

$42,000

Explanation:

Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.

Insurance expense of $210,000

Tax rate of 20%

( $210,000 × .20 )

=$42,000

Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000

6 0
3 years ago
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