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Marizza181 [45]
4 years ago
14

You purchase a bond with an invoice price of $1,095. The bond has a coupon rate of 9.9 percent, semiannual coupons, and a par va

lue of $1,000, and there are two months to the next coupon date. What is the clean price of the bond?
Business
1 answer:
dolphi86 [110]4 years ago
7 0

Answer:

The clean price of the bond is $1,062.

Explanation:

Accrued interest is the coupon payment for the period times the fraction of the period that has passed since the last coupon payment. Since we have a semiannual coupon bond, the coupon payment per six months is one-half of the annual coupon payment. There are two months until the next coupon payment, so four months have passed since the last coupon payment. The accrued interest for the bond is:

Accrued interest = $99/2*4/6

                            = $33

And we calculate the clean price as:

Clean price = Dirty price – Accrued interest

                   = $1,095 – 33

                   = $1,062

Therefore, The clean price of the bond is $1,062.

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Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?
WITCHER [35]

Answer:

57.5%

Explanation:

Data Provided:

Total Sales =  $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

the interest and taxes will be included in the net income for the operating profit

therefore,

The operating profit = income + Interest + Taxes

or

The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000

Now,

the operating profit margin = ( Operating profit / Sales ) × 100

or

= ( $ 115,000 / $200,000 ) × 100 = 57.5%

3 0
3 years ago
Alicia deposited $400 in the bank. The bank paid her simple interest at the rate of 5 percent per year. How much money will she
algol13

Using simple interest, she will have $410 at the end of six months.

Principle = $400

Rate = 5%

Time equals 6 months, or 0.5 years.

Simple interest is equal to PRT/100.

S.I. = 400*5*(1/2)/100

S.I. = 10

Consequently, $400 plus $10 equals $410.

<h3>What is simple interest?</h3>

To calculate the amount of interest that will be charged on a loan, use the quick and easy formula known as simple interest. For the purpose of calculating simple interest, the daily interest rate, the principal, and the number of days between payments are multiplied.

A loan's principal or the first deposit into a savings account serves as the basis for simple interest. Because simple interest doesn't compound, a creditor would only pay interest on the principal sum, and a borrower will never have to pay interest on the interest that has already accrued.

Learn more about simple interests, from:

brainly.com/question/25845758

#SPJ1

6 0
1 year ago
The finance minister of a developing country demands a heavy payment for the approval of a multi-million dollar contract with a
OverLord2011 [107]

Answer:

Extortion

Explanation:

Extortion is the act of threatening or forcing another party to give you something, most of the time money.

In this case the minister in the developing country is demanding for payment before giving approval for the multi-million dollar contract.

The threat the minister is using against the company is to not approve Thier contract.

6 0
3 years ago
Computer maker Dell tries to have the lowest prices for its computers in order to attract a large consumer group. In Porter's fo
babymother [125]

Answer: Cost leadership strategy

Explanation:

Cost leadership strategy is a business strategy in which a business operates at the lowest possible cost within it's industry so as to create a competitive advantage. This strategy is controlled by size, scope and cumulative experience, efficiency, etc.

Cost leadership strategy helps to :

I. Reduce the rate of competition in the market.

II. Enhance business sustainability.

III. Yield more profit for businesses.

7 0
3 years ago
What can a food surplus lead to?
gayaneshka [121]
A food surplus in a society can lead to many different things. But based on the principles of supply and demand a surplus of food should lead to a reduction in the price of food, because the quantity supplied is most likely higher than the quantity demanded. In addition a food surplus could lead a country or companies to sell their food surplus internationally or to "dump" the goods on another country or market by selling the goods for a very cheap price most likely lower than the price of the good in that market prior to the entry of this new producer or country with the food surplus. 
4 0
3 years ago
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