Answer:
interest rate = 15%
value of the bond will decrease
Explanation:
given data
face value = $5,000
time = 5 year
annual coupon payment = $150
solution
we get here interest rate on the borrowed funds that will be as
interest rate = 
× 100
put here value we get
interest rate = 
× 100
interest rate = 15%
and
when bond issued at interest rate = 3 %
but market interest rate 4%
so seller will reduce price of bond less than the face value
because we will look for atleast 4% payout when bond matures
so value of the bond will decrease
Answer:
If prices are cut by $0.2 then the operating income will increase by $91,200.
Explanation:
Current Gross Profit is :
Revenue [240,000 * $6] = $1,440,000
Cost of Sales = $1,416,000
Gross Profit = $24,000
If selling price is reduced to $5.80
Revenue $5.80 * [ 240,000 * 1.10 % ] = $1,531,200
Cost of Sales $1,416,000
Gross Profit = $115,200
I will get to work on your questions right now!
Will make suppliers more likely to produce steel , thus shifting the supply curve to the right
Answer:
PV= $8235.817383
Explanation:
Giving the following information:
Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. You normally invest to earn 6.40 percent per year.
FV= $9,800
i= 0.064
n= 3
Present Value=?
We need to use the present value formula:
PV= FV/(1+i)^n
PV= 9800/(1.064^3)= $8235.817383
