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coldgirl [10]
3 years ago
13

Union Local School District has bonds outstanding with a coupon rate of 4.3 percent paid semiannually and 18 years to maturity.

The yield to maturity on these bonds is 3.4 percent and the bonds have a par value of $10,000. What is the dollar price of each bond?

Business
1 answer:
9966 [12]3 years ago
4 0

Answer:

$11,204.25

Explanation:

For computing the dollar price of each bond we need to applied the present value formula which is to be shown in the attachment below:

Provided that

Future value = $10,000

Rate of interest = 3.4% ÷ 2 = 1.7%

NPER = 18 years  × 2 = 36 years

PMT = $10,000 × 4.3% ÷ 2  = $215

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After applying the above formula, the dollar price of the bond is $11,204.25

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BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries.
OleMash [197]

Answer: False

Explanation:

The statement that "BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries" is wrong.

It should be noted that both of them are in the mobility industry. The mobility industry refers to the industry which covers the broad range of the organisations which provide products and services thar are used to support domestic and international relocations and assignments.

7 0
3 years ago
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Verizon [17]

Answer:

The correct answer is option B.

Explanation:

Nominal GDP measures economic growth at current prices. It measures the value of output produced on the basis of current prices. It is thus not an inflation measure of economic growth as it includes the change in the price level.  

Real GDP is an inflation-adjusted method to measure economic growth. It measures a change in economic output on the basis of constant. It is thus considered a more accurate measure of the economic growth of a nation as it is not influenced by changes in the price level.

6 0
3 years ago
Mike has an insurance policy that pays 90% of the replacement cost of personal property damaged in a fire. A fire destroyed a st
podryga [215]

Answer:

Explanation:

Mike insurance company will pay = 0.9 of 400 = $ 360

7 0
4 years ago
Read 2 more answers
Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of
Tcecarenko [31]

Answer:

O increase by $48,000

Explanation:

A loss is made on disposal of an asset when the amount received from the disposal is lower than the carrying amount of the asset. The carrying amount or net book value of an asset is the difference between the cost of the asset and its accumulated depreciation.

Hence

Carrying amount = $75,000 - $20,000

= $55,000

Let the amount received on disposal be K

K - $55,000 = -$7,000

K = $55,000 - $7,000

= $48,000

This is the amount received from the disposal and it represents an increase in cash.

7 0
4 years ago
Whispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,
Wittaler [7]

Answer: $0.29 per mile

Explanation:

Truck is to be driven for 100,000 miles.

It has a cost of $34,000 and a salvage value of $5,000.

Useful life is 8 years.

Depreciable cost per mile under units-of-activity method = (Cost price - Salvage value) / Miles to be driven

= (34,000 - 5,000) / 100,000

= $0.29 per mile

3 0
3 years ago
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