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
yKpoI14uk [10]
3 years ago
8

Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value.

He has his eye on a bond issued by the Leisure Time Corporation. The $1,000 par value bond pays 6 percent annual interest and has 15 years remaining to maturity. The current yield to maturity on similar bonds is 14 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the current price of the bonds?

Business
1 answer:
Marianna [84]3 years ago
3 0

Answer:

$508.63

Explanation:

For this question, we use the Present value formula that is reflected in the attached spreadsheet. Kindly find it below:

Provided that

Given that,  

Future value = $1,000

Rate of interest = 14%

NPER = 15 years

PMT = $1,000 × 6% = $60

The formula is shown below:

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

So, after solving this, the present value is $508.63

You might be interested in
In evaluating the profit center manager, the income from operations should be compared a.across profit centers b.to historical p
olya-2409 [2.1K]

Answer: to historical performance or budget

Explanation:

A profit center in a business is a division that is able to make revenues independently and contribute to the revenue of the entire business. In evaluating the performance of a profit center manager, it is best to compare the performance to a budget or their historical performance.

This is because profit centers engage in different businesses and so their revenue making style will be unique. Some profit centers will make more than others because of the goods they produce or the way they produce it. It is therefore best to compare a profit center to an internal measure such as the budget and historical performance.

If the profit center exceeds either of these then they are performing well.

6 0
3 years ago
Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his con
zimovet [89]

Answer: Respect

Explanation:

Respect is something that human beings are taught from birth. It is an attitude and way of being that someone has where they show appreciation for others. A person who has respect treats everyone equally, does not seek humiliation but good treatment.

Respect leads to good integration, where regardless of the differences that a person may have, they can live harmoniously since there is a good deal above all else. Respect allows people to live quietly, where good treatment is one of its main characteristics.

In Rudolf's case, he is a person who maintains respect. He is someone who respects the culture of others and treats everyone equally. He does not seek conflict but a healthy environment where everyone can work harmoniously and this type of behavior lead others to have a good concept and admiration for it.

3 0
2 years ago
Which of the following statements is true?a. A country cannot have comparative advantage in producing a certain item if it incur
ss7ja [257]

Answer:

. All countries can gain from trade if they all specialize in production according to comparative advantage

Explanation:

Comparative advantage is when a country produces a product at a lower opportunity cost when compared with its trading partners.

Absolute advantage is when a country produces more quantities of goods and services than its trading partners.

A country can still have comparative advantage in production if opportunity cost is increasing once it's opportunity cost doesn't become greater than that of its trading partners.

A country can have comparative advantage without having absolute advantage.

I hope my answer helps you.

4 0
3 years ago
With the segmentation variables identified, the VP of Marketing asks you to think about what the target market would look like f
lilavasa [31]

Answer:

2. Small household: 1-2 members.

Explanation:

The small household will require lesser things. The Sauber washer-dryer combo is suitable for small houses where there are 1 or 2 people living there. It is suitable for newly wed couple or old aged couple or 2 people living together on sharing basis. The best suited is to target such households for marketing of new washer dryer combo.

4 0
3 years ago
What is the difference between product advertising and institutional advertising?
Likurg_2 [28]

Answer: Product advertising focuses on promoting specific individual products, while institutional advertising focuses on promoting your overall brand.

Explanation:

5 0
3 years ago
Other questions:
  • C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who cha
    5·1 answer
  • At an inflation rate of 9%, the purchasing power of $1 would be cut in half in just over 8 years (some calculators round to 9 ye
    11·1 answer
  • Sharon Tate has a mutual fund and she has all dividend income and capital gains income used to purchase additional shares in her
    11·2 answers
  • A yearly statement of the financial condition, progress, and expectations of an organization
    15·2 answers
  • Jonathan recently sold his home and was able to take home $423,000 after paying the real estate broker's commission of 6%. If th
    6·1 answer
  • Kern Company deposited $1,000 in the bank on January 1, 2017, earning 8% interest. Kern Company withdraws the deposit plus accum
    6·1 answer
  • Organization Weighs Use of Open Source Software. You began operating a small general electric contracting company two years ago.
    12·1 answer
  • 1. I tend to be critical of others?
    6·1 answer
  • Question 3 of 10
    11·2 answers
  • In the short-run which form of inflation is caused by a decrease in the supply curve or an increase in wages?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!