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11111nata11111 [884]
4 years ago
9

. General Motors’s bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $ 1,000 par value, and

the coupon rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current market price of these bonds?
Business
1 answer:
pshichka [43]4 years ago
5 0

Answer:

Present value of the bonds 935.82

Explanation:

We have to calculate the present value of the coupon interest service

and the face value redeem at maturity.

C \times \frac{1-(1+r)^{-time\times} }{rate} = PV\\

C = 1000 x 0.8 = 80

rate = 9%

time = 10

80 \times \frac{1-(1+0.08)^{-10} }{0.08} = PV\\

PV = 513.41262

\frac{Face}{(1 + rate)^{time} } = PV

Face Value = 1000

rate = 0.09

\frac{1000}{(1 + 0.09)^{10} } = PV

PV = 422.410807

<u>Present value of the bonds </u>

annuity PV + face PV = market price

513.41262 + 422.410807 = 935.823427 = 935.82 market value

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Win/win (we both win - could also be described as compromise)

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3 years ago
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive
Ivahew [28]

In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level. If the variable cost is a fixed charge per unit and fixed costs remain the same, it is possible to determine the fixed and variable costs by solving the system of equations.

1. Calculate variable cost per unit using the identified high and low activity levels

Variable cost = (Total cost of high activity – Total cost of low activity) / (Highest activity unit – Lowest activity unit)

((112,000 X .167) - (168,000 X .132)) / (168,000-112,000) = variable costs

2. Solve for fixed costs

To calculate the total fixed costs, plug either the high or low cost and the variable cost into the total cost formula.

It doesn't appear that you have enough information to answer this section. You need to know total cost to be able to answer this.

Total cost = (Variable cost per unit x units produced) + Total fixed cost

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4 0
3 years ago
the following payoff matrix is for two players, each with two strategies: what is player 2's dominant strategy in this game? alw
barxatty [35]

Player 2 does not have a dominant strategy in this game.

What is dominant?
To be dominant is to exercise power. One male wolf in a pack engages in combat with the others, prevails, and rises to the position of leader. Dominus, which means "lord or master" in Latin, is where the word dominant originates. This is one of many names for God that you may be familiar with if you attended a Latin mass as a child. If you treat others as though you are their master, you are dominant. The word dominant can also be used to describe something frequent as well as typical. For instance, making calls was the primary function of cell phones when they first became available. Some people hardly ever make calls on their cell phones because they can do so much more now.

A dominant strategy is one that provides the best outcome regardless of what strategies the other player chooses. In this game, if Player 1 cooperates, then Player 2's best strategy is to also cooperate. However, if Player 1 cheats, then Player 2's best strategy is to cheat. Therefore, Player 2 does not have a dominant strategy because the best strategy depends on what Player 1 does.


To learn more about dominant
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8 0
1 year ago
During the year, a firm purchased $256,900 of merchandise and paid freight charges of $36,870. If the total purchases returns an
olga nikolaevna [1]

The net delivered cost of purchases is $270920

<u>Explanation:</u>

The given data in the question is as follows:

purchases = $256900, freight charges paid = $36870, purchase returns and allowances = $13690, purchase discounts = $9160

The net delivered cost of purchases is calculated as follows:

Purchases plus frieght charges minus purchase returns and allowances and minus purchase discounts

Purchases = $256900

add: freight charges paid = $36870

less: purchase returns and allowances = $13690

less: purchase discounts = $9160

net delivered cost = $270920

Therefore, the correct answer is $270920

6 0
3 years ago
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