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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

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What is an economic factor on a business
blsea [12.9K]

Hi there!

<u>Information:</u>

<u>First, allow us to observe what an "economic factor is".</u>

- An economic factor is data taken out of market and economy.

- Economic factor may include certain costs. And these costs well be in our answer.

<u>Problem-Solving / Answer</u>

<u>Now, we figure out what economic factors we can find.</u>

<u>Tax rates</u> - tax rates can include an Economic factor.

<u>Laws</u> - Laws are a known economic factor.

<u>Unemployment</u> - Big one, at this time due to COVID-19, unemployment rates are flying off the charts. This is an example of an economic factor.

Important Keywords;

- Data ; <u>Data can be information taken from a place, for example, you have taken data from a chart.</u>

<u>Learn more:</u>

<u>Push factors: brainly.com/question/13553564</u>

<u>Economic growth: brainly.com/question/13023127</u>

<u></u>

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8 0
3 years ago
After much searching, Mort located an old banking friend of his father's. The banker offered Mort up to $25,000 in unsecured fun
VladimirAG [237]

Here, in the given case, Mort was offered a <u>line of credit </u>financial facility. Therefore, Option D is the correct choice.

<h3>What is a line of credit?</h3>

A line of credit is a versatile mortgage from a monetary group that includes a described amount of cash that you could access as needed and pay off both right now or over time. Interest is charged on a line of credit as quickly as money is borrowed.

The missing information in the question is given below:

A. revolving credit agreement.

B. asset guarantee pledge.

C. pledging agreement.

D. line of credit.

Therefore, Here, in the given case, Mort was offered a<u> line of credit </u>financial facility. Therefore, Option D is the correct choice.

Learn more about line of credit:

brainly.com/question/27126499

#SPJ1

4 0
1 year ago
The investments of Steelers Inc. include a single investment: 42,730 shares of Bengals Inc. common stock purchased on September
Inga [223]

Answer:

Explanation:

A. The journal entries are shown below:

On September 12

Investment A/c - Bengals Inc A/c Dr $598,220   (42,730 × $14)

          To Cash A/c                                     $598,220

(Being the acquired investment including brokerage commission is recorded)

On December 31

Unrealized gain or loss on available-for-sale securities A/c Dr $85,460            

            To Valuation allowance for available-for-sale securities $85,460

(Being decline in share value is recorded)

The computation is shown below:

= 42,730 shares × ($14 per share - $12 per share)

= 42,730 shares × $2 per share

= $85,460

B. The unrealized gain or loss for available-for-sale investments is shown in the Stockholder equity section on the balance sheet. It is to be shown in the negative item in the equity section.

7 0
3 years ago
. A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processe
prohojiy [21]

Answer:

(a) Linear model

max\ P = 9x + 7y

Subject to:

12x + 4y \le 60

4x + 8y \le 40

x,y \ge 0

(b) Standard form:

max\ P = 9x + 7y

Subject to:

12x + 4y + s_1 = 60

4x + 8y +s_2= 40

x,y \ge 0

s_1,s_2 \ge 0

Explanation:

Given

\begin{array}{ccc}{} & {Hours/} & {Unit} & {Product} & {Line\ 1} & {Line\ 2} & {A} & {12} & {4} & {B} & {4} & {8} & {Total\ Hours} & {60} &{40}\ \end{array}

Solving (a): Formulate a linear programming model

From the question, we understand that:

A has a profit of $9 while B has $7

So, the linear model is:

max\ P = 9x + 7y

Subject to:

12x + 4y \le 60

4x + 8y \le 40

x,y \ge 0

Where:

x \to line\ 1

y \to line\ 2

Solving (b): The model in standard form:

To do this, we introduce surplus and slack variable "s"

For \le inequalities, we add surplus (add s)

Otherwise, we remove slack (minus s)

So, the standard form is:

So, the linear model is:

max\ P = 9x + 7y

Subject to:

12x + 4y + s_1 = 60

4x + 8y +s_2= 40

x,y \ge 0

s_1,s_2 \ge 0

4 0
2 years ago
News or program on TV. Reliable or relevant
allochka39001 [22]

Answer:

<u>Relevant</u>

Explanation:

News, and / or programs on TV, is how media, and the government gives information and influences people. It is relevant for the reason that outlets are trying to influence the viewers, but it is not always reliable. The news, and commercials shown on TV are not always reliable. Politicians may put things on TV, or news that is not necessarily true, or reliable. News outlets also do the same thing. News is notorious for spewing false information. And not only on our presidents an politicians. The point of news is to basically exaggerate things to get hold of the viewers attention more.

:))

5 0
3 years ago
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