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
bearhunter [10]
3 years ago
6

How would you value a 1000 bond with 10% coupon rate?

Business
1 answer:
andreev551 [17]3 years ago
3 0

Question

<em>How would you value a 1000 bond with 10% coupon rate?</em>

<em>Assuming the bonds is repayable in five (5) years time with a yield of 11% per annum.</em>

Answer:

Value of bond = $948.54

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond of the can be worked out as follows:  

Step 1  

<em>PV of interest payments </em>

<em> </em>Annul interest payment<em>  </em>= 10% × 1000  = 100  

Annual yield = 11%

Total period to maturity (in years)  = 8 years  

PV of interest =  

100 × (1- 1.11^(-8)/)/ 0.11 =  514.612  

Step 2  

<em>PV of Redemption Value</em>  

= 1,000 × (1.11)^(-8) = 433.926

Step 3

<em>Price of bond </em>  

= 514.612 +  433.926  =  948.539

Value of bond = $948.54

You might be interested in
A holder in an investment.
kumpel [21]
I think it's b honestly
3 0
3 years ago
Read 2 more answers
Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the busines
Darina [25.2K]

Answer:

a.increase in assets (Cash) and increase in owner's equity (Michael Anderson, Capital)

Explanation:

we solve this using the accounting equation

Assets = Liabilities + Equity

The cash would represent currency own by the company. That is the definition of assets. Something own by the company that either is cash or can be converted into cash in the future or help to provide an inflow of cash.

Now, as Asset increase by 15,000 the other side must also increase.

The company has no liability against the owner Thus this will be an equity account Which precisely, it represent the capital of the owners.

5 0
3 years ago
If a firm decides it is in the best interest to collaborate on a development project, how would you recommend the firm choose a
Ahat [919]

Answer:

We live in a related world more so now than any time in recent memory before.In this scenery no business can have all the assets to take an interest completely in the worldwide commercial center without key unions, coordinated efforts and organizations.  

Effective endeavors are continually searching for assets to ceaselessly enhance their ebb and flow tasks and have the accepted procedures to stay ahead in the race.  

Joint effort is a vehicle to supplement the assets of an association and addition abilities to meet certain all around characterized targets. The substance might be deficient with regards to specific assets like money related quality, aptitudes and deliberately it might not have any desire to put resources into their zones of "shortcoming" for some an explanation.  

The firm might need to investigate for an imminent accomplice from its realized business system to begin with. Business and informal communities can furnish leads by taking part in conversations with them. Different zones for prospecting could be from the databases of mechanical improvement offices. Tried and true outsider specialist co-ops - offices right now be locked in to discover reasonable possibilities.  

By the day's end, organizations are about connections. Common regard for one another and shared qualities are important to have an effective organization to meet every others key business targets through such a joint effort. Essentially each ought to be expertly dedicated to such a dare to guarantee goals are met in soul and word.  

The Collaboration ought to be reported in an itemized way that would show the particular jobs of the separate gatherings.  

The manual should record governing rules for taking an interest accomplices to assume out their jobs genuinely.  

Key audit gatherings, choices on money related expenses must incorporate the state of both the substances in a reasonable way.  

Occasional outsider reviews of tasks ought to be a fundamental part of the manual.

3 0
3 years ago
The type of scarcity in the cartoon?​
o-na [289]
Economic cartoons is your answer
8 0
3 years ago
Where do charts get the data series names?
bagirrra123 [75]

Answer:

Row labels

Explanation:

3 0
3 years ago
Other questions:
  • The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. you decide to have a burger
    14·1 answer
  • As customers of pierre’s dress shoppe prepared their wardrobes for winter, they purchased all of the long-sleeved dresses he had
    11·1 answer
  • A recent innovation by amazon, the vendor flex program, seeks to lower overall transportation costs but also creates new forms o
    6·1 answer
  • The economic freedom of the world measure indicates that the united states
    15·1 answer
  • Fitness is the measure of ____________ and ability to produce more ________
    5·1 answer
  • A $50 par value convertible preferred stock is convertible into 5 shares (exercise price of $10). The preferred is selling for $
    11·1 answer
  • Products is a manufacturer of large flower pots for urban settings. The company has these​ standards: LOADING...​(Click the icon
    8·1 answer
  • Suppose that the firm pays its workers $46 per day. Each unit of output sells for $12. How many workers should the firm hire
    9·1 answer
  • Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $425,000, and its year-e
    11·1 answer
  • An example of a population is all people who shop at Target while a sample is only those people who buy orange juice at Target.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!