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3 years ago

An insurance policy is _____.

1 answer:

5 0

The amount an individual pays for an insurance policy the contract between the insurance company and an individual the amount an individual pays after they file a claim the amount that is paid by the insurance company to the individual insured

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Wine and Roses, Inc., offers a bond with a coupon of 9.0 percent with semiannual payments and a yield to maturity of 9.78 percen

Mariana [72]

Answer:

The market price of the $1,000 face value bond is $961.12.

Explanation:

This can be calculated as follows:

Step 1: Calculation of the present value of the coupon (PVC) cash payments flow

To calculate this, we use the formula for calculating the PV of an ordinary annuity as follows:

PVC = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)

Where;

PVC = Present value of the coupon (PVC) payment = ?

P = Semiannual coupon amount = $1,000 × (9.0%/2) = $45

r = Yield to maturity rate = 9.78% annual = 9.78% ÷ 2 semiannually = 4.87% or 0.0487 semiannually

n = number of period = 7 years = 7 × 2 semiannul = 14 semiannual

Substitute the values into equation (1) to have:

PVC = 45 × [{1 - [1 ÷ (1+0.0487)]^14} ÷ 0.0487] = $448.59

Step 2: Calculation of the present value of the face value (PVFAV) of the bond

Since this is just a single amount, not a flow, we use the simple PV formula as follows:

PVFAV = FAV ÷ (1 + r)^n ……………………………………. (2)

Where;

PVFAC = Present value of the face value of the bond = ?

FAC = Face value of the bond = $1,000

r and n are as given in step 1 above

Substitute the values into equation (2) to have:

PVFAV = FAV ÷ (1 + 0.0487)^14 = $512.53

Step 3: Calculation of the market price of a $1,000 face value bond

The market price of a bond is the addition of the PV of expected cash flows and PV of the face value of the bond. For this question, the market price of a $1,000 face value bond can be calculated as follows:

Market price of the bond = PVC + PVFAC …………………………… (3)

Substituting the values already obtained in steps 1 and 2 above into equation (3), we have:

Market price of the bond = $448.59 + $512.53 = $961.12

Therefore, the market price of the $1,000 face value bond is $961.12.

6 0

3 years ago

In a buying center, __________ have the formal or informal power to select or approve the supplier that receives the contract.

HACTEHA [7]

The <u>deciders </u>have the formal or informal power to select or approve the suppliers that receive the contract in a buying center.

<h3>What are buying centers?</h3>

A buying center is a jointed decision-making group that gathers individuals of an enterprise who engage or involve in the purchasing process for a certain product or a service.

A buying center is the collection of employees or members of any form of organization that are in charge of making big purchases.

Members of the buying center include

Buyers
Decider
User
Initiator
Influencer
Gatekeeper

Here, the <u>decider </u>has the formal or informal power to select or approve the suppliers that receive the contract in a buying center.

Learn more about buying center here:

brainly.com/question/8947097

3 0

3 years ago

The company changed its inventory method to FIFO from weighted-average, which had been used in prior years.

alukav5142 [94]

Answer:The Fifo method of stock Pricing is more efficient because it show the current market which do give room to rigor of determining unrealized profits.

Explanation:The First in,First out method has proven to be an effective method by revealing the actual cost of the material and represent the historical cost.The use of this system helps to avoid waste by issuing old stocks first.Its also a good representation of a sound storekeeping practice which increases profits during inflation.

7 0

3 years ago

Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grow

Katyanochek1 [597]

Answer:

option (B) 35 years

Explanation:

Given:

Real per capita GDP of Sweden = $50,000

Real per capita GDP of Chile = $25,000

Growth rate of Sweden = 2%

Growth rate of Chile = 4%

As per the Rule of 70, the economy's GDP doubles in $\frac{\textup{70}}{\textup{Growth rate}}$

Therefore,

The GDP of Sweden will double in = $\frac{\textup{70}}{\textup{2}}$ = 35 years

and,

Chile will double in $\frac{\textup{70}}{\textup{4}}$ = 17.5 years

Therefore,

in 35 years the GDP of Sweden will be $100,000

and,

In 35 years the GDP of Chile will also be ($50,000 in 17.5 years and $100,000 in next 17.5 years) = $100,000

Therefore,

The real GDP per capita in the two nations to converge in 35 years

Hence,

The correct answer is option (B) 35 years

8 0

3 years ago

During the second and third trimesters, the caloric needs of a pregnant woman increase by _____ kilocalories per day. 100-200 35

siniylev [52]

Assuming that you are perfectly healthy, such that you are in the appropriate age to be pregnant and you have a normal body weight, your calorie intake should increase by 350-450 calories per day. To be sure, you should consult your doctor.

3 0

3 years ago