Rao Construction recently reported $28.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00
1 answer:
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Answer:
Price of the bond is $104,236,860.
Explanation:
Given:
Coupon rate is 6% or 0.06
Face value = $119,000,000
Coupon payment each year = 0.06×119,000,000
= $7,140,000
Yield to maturity = 7% or 0.007
Maturity period = 30 years
Price of bond = Present value of face value + present value of coupon payment (annuity)
Price of bond =
PV of $1 for 7%,30 periods = 0.1314
PVA of $1 for 7%,30 periods = 12.409
Substitute the values in above formula:
Price of bond = (119,000,000 × 0.1314) + (7,140,000 × 12.409)
= 15,636,600 + 88,600,260
= $104,236,860
There will be slight difference in final answer as present value table is used. Excel spreadsheet gives an accurate answer.
So, price of bond is $104,236,860
Answer: Product Life cycle
Explanation: Product Life cycle is a concept used to describe the various stages which a product will have to undergo from the time of introduction into the market till the time it will eventually be out of the market. Different products have different life cycle,the life cycle is determined by different factors. The shape of a product's life cycle is that of a BELL SHAPE
The stages include Introductory stage, Growth stage, Stabilization stage and decline stage.
