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
WITCHER [35]
3 years ago
6

Delta Corporation has a bond issue outstanding with an annual coupon interest rate of 7 percent and 4 years remaining until matu

rity. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return. The bond pays interest annually.

Business
1 answer:
zvonat [6]3 years ago
6 0

Answer:

The current value of the bond is $796.04

Explanation:

The current value of a bond is the present value of all the cash inflows expected from the bond in the form of an annuity of interest payments and the term end face value payment discounted by the required rate of return or market interest rates. Thus, the current price of this bond will be,

Interest payment from the bond per year = 1000 * 0.07 = $70

The present value of ordinary annuity formula is attached in the answer.

Price = 70 * [ (1 - (1+0.14)^-4) / 0.14 ]  + 1000 / (1.14)^4

Price of the bond = $796.04

You might be interested in
Depreciation is a _____, a cost that cannot be affected by any future action.
stiks02 [169]
<span> <span><span>Depreciation is a </span>sunk cost. </span></span>It is the value lost on an asset after consumption. In accounting, depreciation cost qualifies as a sunk cost because it is already lost and cannot be recovered. For that reason, it is correct to ignore depreciation cost when determining the future course of a business.
7 0
3 years ago
Read 2 more answers
The leading and the lagging strands differ in that _____.
lesya692 [45]

Answer: Option (C)

Explanation:

The known key difference in between the leading and lagging strand can be described as that leading strand is referred to as DNA strand, that tends to  grows continuously during the process of DNA replication on the other hand  lagging strand is known as DNA strand, which tends to grow discontinuously by formulating the segments referred to as the Okazaki fragments.

3 0
3 years ago
Suppose that in the rice market demand shifts due to a new rice diet that is being marketed in the U.S. as a cure for cancer. Si
Soloha48 [4]

Answer:

The equilibrium price will increase

Explanation:

Equilibrium price is defined as the price at which the quantity demanded and quantity supplied are equal.

At this point there is no excess demand or supply, they are both equal.

I'm the given scenario the new rice diet that is being marketed in the U.S. as a cure for cancer will lead to increase in demand for rice.

While a flood that affects the rice crop in California will reduce the ability of suppliers to supply. Leading to reduced quantities supplied to the market.

This results in increased prices for the now scarce rice in the economy

It is illustrated in the attached diagram where price increases from P1 to P2.

The new equilibrium quantity is Q1

8 0
3 years ago
what is a highly coordinated activity that delivers goods and/or services when they are needed? multiple choice just-in-time pro
Julli [10]

Just-in-time production is a highly coordinated activity that delivers goods or services when they are needed.

Just-in-time management is a philosophy, not a method. If the "customer" is the eventual consumer of the product or a process further along the production line, the term originally referred to the manufacturing of goods to precisely fulfill customer demand in time, quality, and quantity.

By minimising the time and resources needed for production operations, JIT increases productivity. More rapid product production is possible thanks to manufacturers.

This simplified strategy can save costs and boost productivity while things are going as usual, but it is vulnerable to changes in supply and demand. JIT production can make manufacturers unable to meet demand when global supply networks are interrupted for a variety of reasons, deepening an economic downturn.

To know more about just-in-time production refer to the given link:

brainly.com/question/28865388?referrer=searchResults

#SPJ4

6 0
1 year ago
WILL MARK BRAINLIEST!!!!! PLZ HELP ASAP!!!!!
Mandarinka [93]

Answer: Direct deposit is a payment option where your funds are electronically transferred to your checking or savings account through any way of technology. This can help the payee receive the payment(s) faster and avoid dealing with physical checks. In many cases, direct deposit means your payroll checks are immediately deposited into your account.

Explanation: Explanation's up there, what is there to explain

4 0
3 years ago
Other questions:
  • A quality control activity analysis indicated the following four activity costs of an administrative department:
    9·1 answer
  • __ means responding to pressure after a problem has arisen
    14·1 answer
  • Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that t
    5·1 answer
  • Which type of financial institution is owned by its depositors and borrowers?
    11·1 answer
  • What is pure competition?a. A theoretical market structure with very large numbers and identical products.b. A theoretical marke
    8·2 answers
  • Over the course of a day, fans pour into a NASCAR venue at the rate of 8,000 people per hour. The average rate at which fans lea
    7·1 answer
  • Acme, Inc., which manufactures the fireworks that municipal governments buy to put on their annual fireworks shows on the Fourth
    7·1 answer
  • Externalities affect the economic efficiency of a market equilibrium by causing a difference between:________
    11·1 answer
  • Smiley Corporation sold equipment costing with of accumulated depreciation for cash. Which of the following journal entries shou
    15·1 answer
  • On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34,
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!