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
SashulF [63]
3 years ago
8

Giant electronics is issuing 20-year bonds that will pay coupons semiannually. the coupon rate on this bond is 7.8 percent. if t

he market rate for such bonds is 7 percent, what will the bonds sell for today? (do not round intermediate computations. round your final answer to the nearest dollar.) $1,085 $861 $1,037 $923
Business
1 answer:
Natali5045456 [20]3 years ago
6 0
Given:
Years to maturity =n= 20
Coupon rate = C = 7.8%
Frequency of payment =m= 2
Semiannual coupon = $1,000 × (0.078/2) = $39.00
Current market rate =i= 7%
Present value of bond = P
Price of bond = 0.078 x 1000 x (1 – (1 + 0.07)^-20/0.07 + 1000/ (1.07) ^20= 78 x 10.60= 826.33 + 258.42= 1,084.75
The correct answer is: $1,085
You might be interested in
Which best summarizes the purpose of a W-4 form?
Alexus [3.1K]
1............. Is the answer
7 0
3 years ago
If the bath was set to 80 °c, what do you think would happen to the rate of photosynthesis
Dmitry_Shevchenko [17]

The rate of photosynthesis would be slowed down, the rapid heat increase would put the plant into a sort of shock, slowing down the cells activities and then the plant would eventually die

8 0
4 years ago
You are reviewing the accounting records of Cathy's Antiques, Inc. owned by Cathy Miller. You have uncovered the following situa
lakkis [162]

Answer and Explanation:

The accounting principles and the suggestions are shown below:

a. Business Entity Concept:

In this given situation, the amount of $500 should be refunded to the business or it can be recognized as the withdrawal amount by Cathy Miller. The suggestion is that She should use a personal check for paying daycare in the future for her son

b. Going Concern Concept:

Since the business is closed for month-long vacation in the month of June. As Cathy's Antiques is not closing the business for permanent. As she plans for reopening on July 1. The suggestion is that she should hold an inventory decline sale or for other relevant sales.

c.  Monetary Unit Concept:

The invoice should be restated in the united states for the purpose of accounting

d. Revenue Recognition Concept:

The revenue should be recognized when it is realized or earned. As the table is not delivered so the revenue should not be recognized.

The amount of $1,500 should be recorded for an account like deposits received from the customers until the delivering of the table is not done

4 0
3 years ago
15.2 Calculating Flotation Costs: The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, Wiley received $
Marina CMI [18]

Answer:

23.16%

Explanation:

net amount of money received by Wliey Oakley = 7,750,000 stocks x $21.39 per stock = $165,772,500

total flotation costs including direct and indirect costs = [($26.30 - $21.39) x 7,500,000] + $1,350,000 + $210,000 = $38,385,000

flotation costs as a percentage of funds raised = $38,385,000 / $165,772,500 = 0.2316 = 23.16%

4 0
3 years ago
A high home inflation rate relative to other countries would ____ the home country's current account balance, other things equal
Tomtit [17]

Answer:

The correct answer is: decrease; decrease.

Explanation:

A high inflation rate in the home country as compared to other countries implies that the price level will be relatively higher. This will cause the export demand to decrease and import demand to increase as the foreign goods will be cheaper than the domestic goods.  

This increase in imports and a decrease in exports will cause the current account balance to decrease.  

An increase in income will cause the demand to increase. A shift in the demand curve will cause the price level to increase. An increase in the price level will decrease the current account balance as mentioned above.  

8 0
3 years ago
Other questions:
  • . Describe an example of a company that manufactures a product.
    15·1 answer
  • Ricci works for a lighting company where he fits components together to produce desk lamps. The process that Ricci uses is calle
    6·1 answer
  • Bob, a guest at a hotel, reached into the front seat of the hotel limousine to get his briefcase. he supported himself by placin
    6·1 answer
  • If you are a seller with a seller cost of $6.50, would you be willing to sell your book for $6.25?
    11·1 answer
  • Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the di
    7·1 answer
  • Which one of these car loan terms is too long to pay for a car lo<br> Term-36,48,60 and 72
    13·1 answer
  • Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment i
    14·1 answer
  • A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas are $500 fo
    8·1 answer
  • Should it be illegal for companies to sell their consumers’ information? speech
    15·1 answer
  • Firms will generally make-to-order when
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!