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
Vadim26 [7]
3 years ago
13

On January 1, 2021, Frontier World issues $40.6 million of 8% bonds, due in 15 years, with interest payable semiannually on June

30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 7%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Business
1 answer:
kolbaska11 [484]3 years ago
4 0

Answer:

The issue price of the bond is $44,330,000

Explanation:

The issue price of the bond can be computed using the pv formula in excel,which is given as =-pv(rate,nper,pmt,fv)

rate is the semi-annual yield to maturity on the bond which is 7%/2=3.5%

nper is the number of coupon payments the bond would make before maturity,which 15 years multiplied by 2=30

pmt is the semi-annual interest payment of the bond i.e 8%/2*$40.6 million=$1.624 million

The fv is the face value of the bond repayable at maturity which is $40.6 million

=-pv(3.5%,30,1.624,40.6)

pv=$44.33 million

You might be interested in
Inventory records for Dunbar Incorporated revealed the following: DateTransactionNumber of UnitsUnit Cost Apr.1Beginning invento
Jet001 [13]

Answer:

$965

Explanation:

Calculation to determine what Ending inventory assuming weighted-average cost would be:

First step is calculate the Weighted-average cost

Weighted-average cost = [(480 x $2.48) + (440 x $2.75)] / (480+440)

Weighted-average cost =1,190.4+1210/920

Weighted-average cost = 2400.4/920

Weighted-average cost =2.6091

Now let determine the Ending inventory

Ending inventory = (920-550) x 2.6091

Ending inventory = 370x 2.6091

Ending inventory =$965

Therefore Ending inventory assuming weighted-average cost would be $965

7 0
3 years ago
The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 t
bonufazy [111]

The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 to 70 units. Therefore, demand for cameras in this price range is inelastic.

An economic word known as "inelasticity" describes an item or service's unchanging quantity when its price varies. When prices rise, consumers' purchasing patterns essentially stay the same, and when prices fall, those same purchasing patterns still hold true. This is known as inelastic demand. When an item or service's quantity remains constant when its price increases, it is said to be "inelastic. "When a good or service's price increases or decreases, consumers' purchasing patterns essentially stay the same. The same is true when the price of the good or service decreases. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists. Elastic contrasts with inelastic.

To learn more about inelasticity visit here;

brainly.com/question/28192591

#SPJ4

7 0
11 months ago
Exercise B: Assume you had invested $1,000 in a lawn mower to set up a lawn mowing business for the summer. During the first wee
andrew11 [14]

Answer:

\left[\begin{array}{cccc}&$mow grounds&$paint garage&$Differential\\$Revenue&1400&1360&\\$Cost&-160&-80&\\$Net &1240&1280&-40\\\end{array}\right]

It is better to paint the garage this week as provide better relevant yield.

Explanation:

The 1,000 invested in the law mower ware sunk cost as it is already incurred. After this week we will be still be able to take jobs ralated to the lawn mower.

We must base our analysis in the future cost associate with each alternative.

These are the revenue of each job and the additional cost.

The transportation as they are equal to both alternative are disregarded.

4 0
3 years ago
When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity
jok3333 [9.3K]

Answer:

The correct answer is option d.

Explanation:

When there is an increase in the price level, the purchasing power of money decreases. People will need more amount of money to purchase the same level of goods. This will reduce the real value of wealth.  

When the purchasing power decreases and people need more amount of money to purchase the same level of goods, the demand for money will increase. This will cause the interest rate to rise as well.  

As the price level increases, domestic goods become relatively expensive. This will cause the export demands to decline. So the demand for domestic currency will also decline. This will further cause the value of currency to depreciate.

5 0
3 years ago
because the costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV
mario62 [17]

The makers of UAV drones have good reason to sell their drone models to buyers in the Asia- Pacific at lower average website prices than the average website prices charged to buyers in the Europe-Africa region because they incur higher import duties on shipments of UAV drones to buyers in Europe-Africa than they do on each drone shipped to buyers in the Asia-Pacific region.

The costs of shipping UAV drones from Taiwan to buyers in the Asia-Pacific are $50 higher than the costs of shipping UAV drones from Taiwan to Europe-Africa.

The production/assembly costs per drone that drone-makers incur on all UAV drones shipped to the Asia-Pacific region are many dollars higher than production/assembly costs per drone shipped to buyers in the Europe-Africa region.

The administrative costs per UAV drone sold that companies incur on sales to buyers in the Asia- Pacific region are about $10 higher than those incurred on sales to buyers in the Europe- Africa region.

To learn more about  UAV drone here

brainly.com/question/14179661

#SPJ4

8 0
1 year ago
Other questions:
  • How much of the federal government's income comes from individual income tax? (1 point)
    13·1 answer
  • Buffalo bill's publicity agent, john burke, used _________ to promote bill's wild west show.
    5·1 answer
  • Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H rep
    6·1 answer
  • What is a goal of federal minimum wage who benefits from it?​
    8·1 answer
  • Tom Cruise is a 17 year old high school student who works as an assistant manager at the local movie theater. If an increase in
    9·1 answer
  • How could I study and prepare myself for my ged test all subjects
    13·1 answer
  • The expected return on the market portfolio is 13%. The risk-free rate is 6%. The expected return on SDA Corp. common stock is 1
    8·1 answer
  • When there is no beginning Finished Goods Inventory and all the goods that are produced are sold, the operating income ________.
    6·1 answer
  • Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system. The followi
    10·1 answer
  • There are costs and benefits to either method of solving a Capitalizing Problem.<br> True or False?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!