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mixer [17]
3 years ago
7

Courier Logistics Corp. will issue $2,400,000 in 8-year bonds that pay 5% annually. The market rate for bonds of similar riskine

ss and maturity is 4%. How much cash will Courier Logistics Corp. receive from this bond issuance?
a. $2,529,241.
b. $2,374,124.
c. $2,561,585.
d. $2,400,000.
Business
1 answer:
djverab [1.8K]3 years ago
8 0

Answer:

Courier Logistics Corp will receive c. $2,561,585 from this bond issuance

Explanation:

Note that the Yield to Maturity is <u>less</u> than the Coupon Rate, therefore the bond is trading at a <em>Premium</em> (price will be greater than the par value)

The price of the bond, PV is calculated as follows :

PMT = $2,400,000 × 5% = $120,000

P/YR = 1

N = 8

FV = $2,400,000

YTM = 4%

PV= ?

Using a Financial Calculator, the price of the bond, PV is $2,561,585.87 or $2,561,585.

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Answer:

The answer is below

Explanation:

A What is the probability that all 4 selected workers will be the day shift?

B What is the probability that all 4 selected workers will be the same shift?

C What is the probability that at least two different shifts will be represented among the selected workers.

A)

The total number of workers = 10 + 8 + 6 = 24

The probability that all 4 selected workers will be the day shift is given as:

P_a=\frac{C(10,4)}{C(24,4)}= \frac{210}{10626}=0.0198

C(n,r)=\frac{n!}{(n-r)!r!}

B) The probability that all 4 selected workers will be the same shift (P_B) = probability that all 4 selected workers will be the day shift + probability that all 4 selected workers will be the swing shift + probability that all 4 selected workers will be the graveyard shift.

Hence:

P_B=\frac{C(10,4)}{C(24,4)}+\frac{C(8,4)}{C(24,4)}+\frac{C(6,4)}{C(24,4)}=0.0198+0.0066+0.0014=0.0278

C) The probability that at least two different shifts will be represented among the selected workers (P_C)= 1 - the probability that all 4 selected workers will be the same shift(P_B)

P_C=1-P_B\\\\P_C=1-0.0278\\\\P_C=0.972

7 0
3 years ago
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alexira [117]
The statement above is FALSE, Reliable Copy Product is not an example of a mechanistic organization. A mechanistic organization is a type of organization in which the authority is highly centralized, observation of formalized procedures and practices are highly prioritized and specialized functions are assigned.
3 0
3 years ago
Next week, super discount airlines has a flight from new york to los angeles that will be booked to capacity. the airline knows
Setler79 [48]
The cost of underestimating the demand is considered a revenue loss that arises due to cancellation of flight costing $134. Hence, cost of underetimating the demand is C_u=\$134.

The cost of overestimating the demand is known as rewards. For example, free round trip ticket worth $263. Hence, the cost of overestimating the demand is C_o=\$263.

\frac{C_u}{C_u+C_o} = \frac{134}{134+263}  \\  \\ = \frac{134}{397} =0.3375

The z-score that yields a p-value of 0.3375 is -0.4193.

Thus, super discount airlines should overbook the flight by 35 + (-0.4193 x 24) = 35 - 10.0632 = 24.9368 = 25 seats.

Therefore, super discount airlines should overbook the flight by 25 seats.
4 0
3 years ago
Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a
zloy xaker [14]

Answer:

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Explanation:

That is the correct answer to the question asked about bond indenture.

8 0
3 years ago
Constance tells Jill, her best employee, that: "Your work is so good, if I like what you do over the next six months, I’ll give
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Jill will not win because this is an illusory promise without consideration.

<u>Explanation:</u>

Even if Jill sues his boss Constance for not giving him the bonus that she had promised to give if her employee, Jill works with great focus and dedication, he will probably not win the case.

The reason for this is that it was just a promise and not a contract signed between that employer and that employee. It was just an illusory promise which is not enough to sue the person or the employer. So there was no benefit of doing it.

7 0
3 years ago
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