WHY SHOULD YOU BE WARY WHEN USING INSTANT MESSGAES?

Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra

Tasya [4]

Answer:

Value of bond = $1,101.59

Explanation:

We know,

Value of bond = [I × $\frac{1 - (1+r)^{-n}}{r}$ ] + $\frac{FV}{(1+r)^{n}}$

Given,

Face value (FV) = $1,000.

Semiannual Coupon, I = FV x semiannual coupon rate = $(1,000 × 7.25%) ÷ 2 = 72.5 ÷ 2 = $36.25

Interest rate, r = 6.20% ÷ 2 = 3.10% = 0.031

Maturity, n = 15 years = 30 periods (As it is semi annual).

Therefore,

Value of bond = [$36.25 × $\frac{1 - (1 + 0.031)^{-30}}{0.031}$ ] + ($1,000 ÷ $1.031^{30}$ )

or, value of bond = ($36.25 × 19.3495) + $400.17

value of bond = $701.42 + $400.17

value of bond = $1,101.59

8 0

4 years ago

Suppose that the price of chicken rises sharply compared to the price of turkey. In response, consumers buy more turkey and less

astra-53 [7]

Answer:

A.overstate; substitution

Explanation:

Consumer Price Index (CPI): is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking the average of the price changes for each item in the predetermined goods. Changes in the CPI are used to assess price changes associated with the cost of living therefore the CPI is used economist for identifying periods of inflation or deflation.

when we say the CPI overstate inflation; it is because of:

Substitution bias (when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives; Therefore, it tends to overstate inflation due to a lack of accountability ) and;

Quality bias (over time, technological advances increase the life and usefulness of products).

3 0

4 years ago

If plant assets of a manufacturing company are sold at a gain of $1,000,000 less related taxes of $350,000, and the gain is not

alekssr [168]

Answer:

D. a gain of $1,000,000 and an increase in income tax expense of $350,000.

Explanation:

Given that

The gain is $1,000,000

And, the taxes is $350,000

So here the income statement that disclose the impact is that

There is a gain of $1,000,000 and also at the same time the income tax expense is rise by $350,000

Therefore the option d is correct

hence, the same would be considered

5 0

3 years ago

Which of the following is not a characteristic of rent controls?

nexus9112 [7]

The greater availability of apartments is not one of the tools that can characterize rent control.

The term rent control refers to the rules and regulations that are given by the policymakers. The rent control can reduce the quality and the rental housing units.

Hence the option B is correct.

Learn more about the is not a characteristic of rent controls

brainly.com/question/1331723.

7 0

2 years ago

Read 2 more answers

Big Canyon Enterprises has bonds on the market making annual payments, with 18 years to maturity, a par value of $1,000, and a p

Digiron [165]

Answer:

7.3%

Explanation:

Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula

As per given data

n= 18 years

Par value = $1,000

Price = $965

YTM = 7.7%

As we have the value of the bond we need to calculate the coupon payment using following formula:

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

$965 = C x [ ( 1 - ( 1 + 7.7% )^-18 ) / 7.7% ] + [ $1,000 / ( 1 + 7.7% )^18 ]

$965 = C x 9.57 + $263.10

$965 - 263.10 = C x 9.57

701.9 = C x 9.57

C = 701.9 / 9.57 = 73.34

Coupon rate = 73.34 / 1000 = 7.334%

7 0

3 years ago