1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anton [14]
3 years ago
14

A 21-year German government bond (bund) has a face value of €550 and a coupon rate of 4% paid annually. Assume that the interest

rate (in euros) is equal to 7.10% per year. What is the bond's PV? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
notka56 [123]3 years ago
7 0

Answer:

Bond's present value is ∈ 366.73

Explanation:

Face Value = F = ∈ 550

Coupon rate = C = 4%

Present value of interest payment = C x F x [ ( ( 1 - ( 1 + r )^t ) / r ] + [ F / ( 1 + r )^t

Present value of interest payment = 4% x ∈ 550 x [ ( ( 1 - ( 1 + 0.071 )^-21 ) / 0.071 ] + [ 550 / ( 1 + 0.071 )^21

Present value of interest payment = ∈ 236.48 + ∈ 130.25

Present value of interest payment = ∈ 366.73

You might be interested in
Faith went to the grocery store to buy apples. if each apple cost $0.78, and she spent a total of $4.68, how many apples did fai
nirvana33 [79]

Faith bought 6 apples at $.78 each. She paid $4.68 for the apples.


Given : $.78 price for each apple

$4.68 the amount Faith spent for the apples.


$4.68 / $.78 = 6

4 0
3 years ago
Why might a tissue such as the pancreas not be a good source to choose for the isolation?
DIA [1.3K]
LDH production is not associated with pancreatic cell secretions. Pancreas secretes the following pancreatic lipases to convert fats into lipoproteins and triglycerides.
7 0
4 years ago
Under project planning activities, defining what leads to successful completion is a part of quizlet
marissa [1.9K]

Under project planning activities, defining what leads to successful completion is a part of <u>DURATION.</u>

Duration is the sum of the workdays, hours, or weeks necessary to finish a job. The length is determined by the resources' capability and availability. The amount of effort required to finish a task, or the actual time spent working on the project, is measured in person hours.

<h3><u>How is project duration calculated?</u></h3>
  • We must know how to estimate duration while creating a timetable. We might simply compute our projected project length by taking the number of effort hours, divided by the number of resources, assuming everyone worked eight hours each day and was completely productive throughout all eight hours.

To know more about duration in a project, check the given links.

brainly.com/question/11375376

#SPJ4

3 0
2 years ago
The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles: a
Lesechka [4]

Answer:

The correct option is D

Explanation:

Under the method of allowance, the uncollectible accounts receivable will be recorded in the same accounting period as the sale of an estimate of the bad debt expense. So, the collection of the account which was earlier written off, will not have any affect on the income in the period or year it is received or collected.

3 0
3 years ago
Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air cond
sweet [91]

Answer:

The minimum price which the company should not go below is $26.00

Explanation:

The minimum price which the company should not go below is the price which covers all cost of manufacturing and non-manufacturing to meeting the special, one-time-only order.

Thus we need to calculate the per unit cost of the special order.

<u>Unit cost of the special order</u>

Direct materials                                 $ 13.00

Direct labor                                         $ 7.00

Variable manufacturing overhead    $ 6.00

Total Cost                                           $26.00

Note

All fixed cost are<em> irrelevant</em> in this calculation as the cost would be incurred whether or not the special order is accepted.

Also the question specifically mentioned that "There would be no variable selling expense on this special order" We need not to include any variable selling expense

8 0
3 years ago
Other questions:
  • What is the highest degree a person must reach to be in management
    11·2 answers
  • Naomi is planning to get a job after graduating from college. Which explains why she should establish a positive credit history?
    8·1 answer
  • On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had
    9·1 answer
  • In the micro supply and demand model, which of the following is true when a fully effective price ceiling is removed from a comp
    11·1 answer
  • Which accounting principle states that a company should "report expenses in the same period as the revenue they help generate"?
    7·1 answer
  • Journalize entries for the following related transactions of Lilly Heating &amp; Air Company using the net method under a perpet
    13·1 answer
  • ___ are the criteria the firm uses to screen credit applicants in order to determine which of its customers should be offered cr
    10·1 answer
  • With the real interest rate equal to 3% and the expected inflation equal to 2​%. The value of the nominal interest rate is ___
    9·1 answer
  • A project has sales of $600,000, costs of $366,500, depreciation of $34,500, interest expense of $5,500, and a tax rate of 21 pe
    7·1 answer
  • Which characteristic of an effective accounting information system refers to a system which works smoothly with the business’s e
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!