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Crazy boy [7]
3 years ago
12

Union Local School District has a bond outstanding with a coupon rate of 2.8 percent paid semiannually and 16 years to maturity.

The yield to maturity on this bond is 3.4 percent, and the bond has a par value of $5,000. What is the price of the bond
Business
1 answer:
Kryger [21]3 years ago
7 0

Answer:

The price of the bond is $4,632.16

Explanation:

Coupon payment = $5,000 x 2.8% = $140 /2 = $70 semiannually

Number of period = n = 16 years x 2 period per year = 32 period

Yield to maturity = 3.4% annually = 3.4% / 2  = 1.7% semiannually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$70 x [ ( 1 - ( 1 + 1.7% )^-32 ) / 1.7% ] + [ $5,000 / ( 1 + 1.7% )^32 ]

Price of the Bond = $70 x [ ( 1 - ( 1.017 )^-32 ) / 0.017 ] + [ $1,000 / ( 1.017 )^32 ]

Price of the Bond = $1,716.72 + $2,915.41

Price of the Bond = $4,632.13

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The correct answer is letter "C": use the indirect strategy.

Explanation:

While giving messages there are two main approaches: <em>the direct </em>and <em>indirect strategy</em>. The direct strategy is used when the main idea of the message is given at the beginning of the speechy to impact or shock the audience. Details of the idea are provided subsequently. The indirect strategy, instead, starts by providing the details to the audience to finally come up with a conclusion.

Thus, <em>while providing refusals, it is more appropriate to use the indirect strategy so customers will know the reason for the non-approval to confirm the negative news at the end.</em>

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There are __ in every economy that are used to produce the goods and services that people want and need
d1i1m1o1n [39]
Answer:
limited resources
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Extremely autonomous children A. usually have strict discipline at home. B. suffer from self-doubt. C. can't be creative. D. may
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A. usually have strict discipline at home

4 0
2 years ago
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Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus
DiKsa [7]

Answer:

Real Surplus is $200 billion

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8 0
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Because of competitive pressures, some firms have used packaging and labeling practices that are questionable, misleading, decep
Flauer [41]

Because of competitive pressures, some firms have used packaging and labeling practices that are questionable, misleading, deceptive, and unethical. this is an example of issues related to Ethics in product strategy.

This is further explained below.

<h3>What is competitive pressure?</h3>

Generally, In most cases, the term "competitive pressure" refers to a circumstance in which a business is put under stress as a result of the presence of other businesses in its industry.

Typical examples of it may be found in all types of economies, with the exception of monopolistic economies.

The demand and supply dynamics of a certain market or sector are very important considerations for any business.

The concept of product ethics encompasses every aspect of a product, including the decisions made about its design and the use of technology.

Therefore, you should direct your development team to make judgments that are morally acceptable while they are creating and constructing the product.

It is important to discourage immoral activities such as the employment of dark patterns and to promote the use of technology that is peaceful.

In conclusion, Some businesses, in order to remain competitive in an increasingly cutthroat market, have resorted to dubious, misleading, dishonest, and immoral packaging and labeling tactics. This is an example of a problem that arises in product strategy that relates to ethics.

Read more about competitive pressure

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