Answer:
Bond Price= $1,081.1
Explanation:
Giving the following formula:
Face value= $1,000
Number of periods= 5*2= 10 semesters
Coupon= (0.1/2)*1,000= $50
YTM= 0.08/2= 0.04
<u>To calculate the price of the bond, we need to use the following formula:</u>
<u></u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 50*{[1 - (1.04^-10)] / 0.04} + [1,000 / (1.04^10)]
Bond Price= 405.54 + 675.56
Bond Price= $1,081.1
Answer:
C) 10%
Explanation:
($144,000 + $12,780)/$36,000 = 4.355
Answer:
$0
Explanation:
Since the offer to repurchase the stock's is contingent (or depends on) the fact that 64% of all outstanding stocks are tendered, there is absolutely no assurance that the threshold (64%) will be met. So there is no assurance that the stockholder is going to be paid (there is no guaranteed payment at all) if he/she decides to tender the stocks.
Answer:
$10.67
Explanation:
Data provided in the question:
Initial cost = $3
Initial selling cost = $5
Initial sales = 4000
with $1 increase in price she loses 300 sales per month
Now,
Let the increase in price which maximizes the profit be '$x'
Therefore,
Final selling price = $5 + x
Final sales = 4000 - 300x
Thus,
Revenue = Final selling price × Final sales
= ( 5 + x)( 4000 - 300x)
= 20,000 - 1500x + 4000x - 300x²
= 20,000 + 2500x - 300x²
Total Cost = Initial cost × Final sales
= 3(4000 - 300x )
= 12,000 - 900x
Now,
Profit = Total revenue - Total cost
or
P = [ 20,000 + 2500x - 300x² ] - [ 12,000 - 900x ]
or
P = 8,000 + 3400x - 300x²
for point of maxima 
Thus,
0 = 0 + 3400 - 300(2x)
or
0 = 3400 - 600x
or
600x = 3400
or
x = 
Hence,
The price will be = $5 + x = 
= $10.67