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balu736 [363]
3 years ago
7

Sunset Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The yield to maturity is 5.1 per

cent and the bond matures in 20 years. What is the market price if the bond has a par value of $2,000
Business
1 answer:
borishaifa [10]3 years ago
6 0

Answer:

$2,189.76

Explanation:

<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>

<em>The price of the bond can be calculated as follows:</em>

<em>Step 1</em>

<em>PV of interest payment</em>

Interest payment =( 5.94%× $2000)/2

= $59.4

Semi annual yield = 5.1/2 = 2.6%

PV of interest payment

= 59.4× (1-(1.026)^(-20×2))/0.026)

= 59.4 × 24.41400537

=<em>$ 1,450.19</em>

Step 2

<em>PV of  redemption value</em>

=  2,000 × (1+0.051)^(-20)

= 2,000 × 0.369781925

=   739.56

Step 3

<em>Price of bond  </em>

= $1,450.19 + $739.56  

=$2,189.76

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Answer:

$7,650

Explanation:

Calculation for the marginal revenue product of the fifth unit of labor

Using this formula

Fifth unit of Labor marginal revenue product=Fifth Quantity of Output*Marginal Revenue

Let plug in the formula

Fifth unit of Labor marginal revenue product=1,530 *$5

Fifth unit of Labor marginal revenue product=$7,650

Therefore the marginal revenue product of the fifth unit of labor is $7,650

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What type of company is required by the Sarbanes-Oxley Act to have a code of ethics available to all employees
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The type of company which is required by the Sarbanes-Oxley Act to have a code of ethics available to all employee is:

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This refers to the guidelines about the way a group of people should behave in a social group or official setting.

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2 years ago
The chart shows the marginal cost of producing apple pies. This chart demonstrates that the marginal cost initially decreases as
NeTakaya

Answer: This chart demonstrates that the marginal cost initially decreases as production increases.

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In the short run, factors of production like capital are fixed. Only labor is variable and varies with the number of units produced. Initially, employing more labor results in better productivity and help in decreasing the marginal costs. However, as more units of labor are employed, labor become less productive and the law of diminishing marginal returns sets in. Hence the marginal cost curve begins to rise.  


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3 years ago
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