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denpristay [2]
3 years ago
10

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of $107 million. The bonds mature

on December 31, 2048. Interest is payable annually on each December 31, beginning in 2019. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 7%. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)
Business
1 answer:
lbvjy [14]3 years ago
8 0

Answer:

$93,725,580.00

Explanation:

The market price of the bond is the present value of annual coupon payment  plus the present value of face amount receivable at the end of the bond tenure.

Annual coupon interest=face amount*stated rate=$107,000,000*6%=$6,420,000.00  

Face amount=$107,000,000

The discount factor for annual coupon is the present of 30 years annuity(2048-2018) at 7% market rate, which is  12.4090  

The discount factor for the face value is  0.1314  

Price of the bond=($6,420,000.00*12.4090)+($107,000,000*0.1314)=$93,725,580.00  

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Zolol [24]
The answer would be A because the key word is manufacturing and that means Mark is building something he visioned. So, the business he started although small inspired enough people to work for what he envision. B, C, and D are wrong because it does not hint or say in the question about any of those answer choices.
3 0
3 years ago
Read 2 more answers
Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provi
vaieri [72.5K]

Answer:

1. Margin = 0.32 or 32%

2. Turnover = $19,000,000  or Operating Asset Turnover = 0.52 or 52%

3. Return on Investment = 0.17 or 17%

Explanation:

Firstly, list out the parameters we were given:

Sales = $19,000,000, Net Operating Income = $6,100,000,

Average Operating Assets = $36,500,000

1. Operating Margin = Net Operating Income / Sales

Operating Margin = 6,100,000 ÷ 19,000,000 = 0.32

Operating Margin = <u>0.32</u> (to 2 decimal places)

Operating Margin = <u>32%</u>

<u />

2. Turnover refers to sales or revenue made during a particular period. In which case turnover is <u>$19,000,000</u>

However, if the turnover referred to is the Operating Asset Turnover, that is calculated below:

Operating Asset Turnover = Sales / Average Operating Assets

Operating Asset Turnover = 19,000,000 ÷ 36,500,000

Operating Asset Turnover = <u>0.52</u> (to 2 decimal places)

Operating Asset Turnover = <u>52%</u>

<u />

3. Return on Investment (ROI) = Net Operating Income / Average Operating Assets

Return on Investment (ROI) = 6,100,000 ÷ 36,500,000

Return on Investment (ROI) = <u>0.17</u> (to 2 decimal places)

Return on Investment (ROI) = <u>17%</u>

8 0
3 years ago
It can be referred from the text that ...
Contact [7]

This question is incomplete because the text is missing; here is the missing part:

Text 1

1. Remove the back cover, using a small screwdriver to loosen the screw

2. Remove batteries and replace with two new AAA batteries. use the + and - signs to position correctly. dispose of used batteries properly.

3. Replace the cover and tighten the screw with the screwdriver

4. Reset the time using the side buttons

The GMX 200 is guaranteed to keep time accurately for one full year from date of purchase should it malfunction in any way during this time period, your money will be refunded in full.

The correct answer to this question is C. The users will get full refund if there is malfunction during the guarantee period.

Explanation:

This text provides instructions to change the battery in a GMX 200, which can be inferred it is a clock or similar device. This text explains the different steps users need to follow to change batteries. Moreover, in the last section of the text, it is clarified if there is any failure during the first year, which is the guaranteed time "your money will be refunded in full". According to this, it can be inferred during this time any malfunction implies the user gets a complete refund (option C.)

6 0
3 years ago
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
Fed [463]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Option 1:

You can have $72,000 per year for the next two years

Option 2:

You can have $61,000 per year for the next two years, along with a $17,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.

The interest rate is 9 percent compounded monthly.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

First, we need to calculate the final value on both options:

FV= PV*(1+i)^n

For each year

Option 1:

i= 0.09/12= 0.0075

n= 12

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Year 2= 72,000*1.0075^12= 78,754.09

Total= 164,895.86

PV= 164,895.86/1.0075^24= 137,825.14

Option 2:

Year 1= 61,000*1.0075^24= 72,981.23

Year 2= 61,000*1.0075^12= 66,722.22

Total= 139,703.45

PV= 139,703.45/ 1.0075^24= 116,768.53 + 17,000= 133,768.53

Option 1 is more profitable.  

8 0
3 years ago
Which of the following actions would an entity most likely take to hedge an investment in a foreign operation?A. Invest in the d
Masja [62]

Answer:

the answer would be C . Invest in the debt securities of another foreign entity with the same foreign currency as the operation being hedged.

Explanation:

8 0
3 years ago
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