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hoa [83]
3 years ago
9

Vulcan, Inc., has 8.5 percent coupon bonds on the market that have 8 years left to maturity. The bonds make annual payments and

have a par value of $1,000. If the YTM on these bonds is 10.5 percent, what is the current bond price

Business
1 answer:
irga5000 [103]3 years ago
7 0

Answer:

$895.22

Explanation:

We use the present value formula to determine the current bond price i.e shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 10.5%  

NPER = 8 years

PMT = $1,000 × 8.5% = $85

The formula is shown below:

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

So, after solving this, the current bond price is $895.22

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If interest rates fall in the USA relative to the rest of the world the demand for US dollar will ________ because there is less
kifflom [539]

Answer:

a. decrease/lower

Explanation:

In the case when the rate of interest declines in the USA as compared with rest of the word, the demand of the dollar of the US would decrease as it represents the lesser demand for the assets with the lesser returns

Therefore as per the given situation, the option a is correct

hence, the same is to be considered

All the other options are incorrect

4 0
3 years ago
A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching
Arte-miy333 [17]

Answer:

The correct answer is c) verification

Explanation:

This creative process model is a situation where a person starts the process of transforming his or her ideas or thoughts in to an actual product.

There are many steps in the process of creative process model, first one being the <u>preparation </u>where a person first identifies the problem , set his or her targets or goals.

After preparation comes the step of <u>incubation </u>where a person starts researching on the ideas, person will do brainstorming , he or she will continuously try to find out the solution.

After incubation comes the step of <u>illumination </u>, where a person gets an epiphany ( just like in this question marketing specialist gets) about how to structure together his or her plan.

And finally after illumination step comes the step of <u>verification </u>, where a person(marketing specialist in this case) evaluates whether the plan he has made is worth continuing and investing time in, he would changes to his plan if necessary.

4 0
3 years ago
Read 2 more answers
When a loan is secured by receivables, the firm assigns the receivables to the bank. If the firm fails to repay the loan, the ba
GenaCL600 [577]

Answer:

(a) True.

Explanation:

It should also be known that however, the firm is still responsible for the loan even if the receivables ultimately cannot be collected. The risk of default on the receivables is therefore borne by the firm. An alternative procedure is to sell the receivables at a discount to a financial institution known as a factor and let it collect the money. In other words, some companies solve their financing problem by borrowing on the strength of their current assets; others solve it by selling their current assets. Once the firm has sold its receivables, the factor bears all the responsibility for collecting on the accounts. Therefore, the factor plays three roles: it administers collection of receivables, takes responsibility for bad debts, and provides finance.

7 0
3 years ago
Prepare an income statement for Rex manufacturing for the year ended December 31 using the following information
aalyn [17]

The preparation of the income statement for the year ended December 31 is as follows:

Sales $94,000

Cost of goods sold  

Begininng finish goods inventory $20,000

Add:Cost of goods manufactured $41,000

Cost of goods available for sale $61,000

Less: Ending finish goods inventory -$17,000

Cost of goods sold $44,000

Gross margin  $50,000

Less: Operating Expenses  

General and Advertising Expenses $15,000

Selling Expenses $13,000

Total operating Expenses $28,000

Operating Income  $22,000

Learn more about the income statement here: brainly.com/question/14308954

3 0
3 years ago
Which of the following statement is TRUE about variable expenses?
german

Answer:

B. The amount you spend on variable expenses changes from month to month.

Explanation:

A variable expense is an expense which is bond to fall or rise in its totality given the status of factors such as; a change in the total sales, change in the ammount of supply or production.

Hense, this ammount is bond to change from time to time.

Some examples of variable expenses include; Labor, expense of raw materials, e.t.c

The expenses which are fixed are known as fixed expenses, they do not change. Some examples are; Insurance, rent and such like expenses.

6 0
3 years ago
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