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ludmilkaskok [199]
3 years ago
6

Longley Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because tha

t was the interest rate while it was being planned. However, rates increased suddenly and are expected to be 9% when the bond is marketed. What will Longly receive for each bond tomorrow
Business
1 answer:
Katen [24]3 years ago
7 0

Answer:

Longly will receive $1,817.43 from selling the bond.

Explanation:

As the coupon rate is 8%; we have annual coupon payment = 2,000 x 8% = $160.

The price of the bond Longly will receive is equal to the present value of 20 annual coupon payment plus the present value of $2,000 face value repayment in 20 years time; with the two streams of cash flow discounting at the market rate at the date of issuing 9%; which is calculated as:

[ ( 160/9%) x [ 1 - 1.09^(-20) ] ] + ( 2,000 / 1.09^20 ) = $1,817.43.

So, the answer is $1,817.43.

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Harlan Corporation deposits $225,000 every June 30th and December 31st in a savings account (beginning in the current year) for
Dmitry_Shevchenko [17]

Answer:

$1,419,327.22

Explanation:

The formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:

FV = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)

Where,

FV = Future value of the amount after 3 years = ?

M = Annuity  payment = $225,000

r = Semi annual interest rate = 4% ÷  2 = 2%, 0.02

n = number of periods the investment will be made = 3 × 2 = 6

Substituting the values into equation (1), we have:

FV = $225,000 × {[(1 + 0.02)^6 - 1] ÷ 0.02} =  $1,419,327.22

Therefore, Harlan Corporation will have $1,419,327.22 at the end of three years.

6 0
3 years ago
A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of p
Ksenya-84 [330]
The answer to this question is true
7 0
3 years ago
Bonnie's employer provides her with an annual dinner club membership costing $5,000. Her marginal tax rate is 24 percent. Her em
Nikolay [14]

Answer:

$3,800

Explanation:

The computation of the after-tax benefit is shown below:

= Annual dinner club membership cost - annual dinner club membership cost × her marginal tax rate

= $5,000 - $5,000 × 24%

= $5,000 - $1,200

= $3,800

We simply deduct her tax expense from the annual dinner club membership cost so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
What was the major financial change between post ww2 borrowers and borrowers after 1970.
Mama L [17]

The major financial change between post ww2 borrowers and borrowers after 1970 was that there were plenty of jobs after World War 2 and the economy was growing at a large extent.

Most of the people believed that their income would not change even though there were plenty of jobs in the economy.

However they all have a constant income from the year 1945 to 1970.

So all the people continued  to borrow more and more money by not attending or joining any post war job in the economy.

Banks were also willing to lend more and more money as they were on the way of high earning through more lending but they get closed.

So after the war people continued to increase their loans and debt ratio in the economy of lending due to which it became the period of great depression.

To know more about post war borrowing here:

brainly.com/question/2675965

#SPJ4

4 0
1 year ago
Use the cost and revenue data to answer the questions. Quantity Price Total revenue Total cost 10 90 900 675 15 80 1200 825 20 7
azamat

Answer:

Check the explanation

Explanation:

Marginal revenue is the revenue earned by selling an additional unit of output. Marginal Revenue for fifteenth unit of output is calculated as below.

Marginal Revenue= \frac{ATR}{AQ} =\frac{1200 - 900}{15 -10} = 60

Marginal Cost is the additional cost incurred on producing additional unit of output. Marginal Cost for fifteenth unit is calculated as below.

Marginal Cost= \frac{ATC}{ AQ} =\frac{825-675}{15-10} =30

The marginal revenue when the quantity is 25 is

The marginal Cost when the quantity is 15 is

The marginal profit of a monopoly is 0 when the marginal profit is equal to the marginal cost. The monopoly produces at an output where the marginal profit is equal to zero.

Thus, the output produced by the monopoly is

The corresponding price set is at $70.

120 units  

A perfectly competitive market produces an output where the marginal cost is equal to

the average revenue. Thus a competitive firm produces

The corresponding price is set at $50.

130 units)

The monopoly price $70 is higher than the competitive firm's price $50.

Hence, the correct option is

7 0
3 years ago
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