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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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Cox Electric makes electronic components and has estimated the following for a new design of one of its products:
vfiekz [6]

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

<u>a) Influence diagram to calculate profit </u>

attached below

<u>b) derive a mathematical model for calculating profit.</u>

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c)  attached below

<u>d) If Cox Electrics makes 12,000 units of the new product </u>

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

  = ( R * q ) - ( Fc + ( Vc * q ) )

  = ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

  = -$5200

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3 years ago
The third-party problem: a. occurs when a market activity leads to a negative externality.b. occurs when a market activity leads
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Answer:

The correct answer is letter "C": occurs when a market activity leads to a negative or a positive externality.

Explanation:

An Economic Externality is a cost or benefit paid or earned by a third party that does not have control over the factors that produced the cost or benefit. The third-party problem arises when whether negative or positive externalities affect individuals who are not involved in market activities.

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3 years ago
Adding a chart to the header of a form will result in a(n)
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Answer:

Chart without a legend.

Hope this helped.

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Answer:d. What do you think about the new ice-cream flavor

Explanation:

An open ended question is a statement that requires a response. The response can't be yes/ no or a static response

The question What do you think about the new ice-cream flavor can't be answered with yes or no. The answer can either be I like the ice cream flavour or I don't like the ice cream flavour.

I hope my answer helps you

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Explain why a city council meeting to discuss hiring more city employees must be open to the public, while a meeting to discuss
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Answer:

The answer is because people should know who is coming into office, but they do not have the right to know why someone is being fired for private reasons.

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It’s important for the hiring discussion to be made public by the city council since it relates to the use of public funds to compensate these additional workforces. In contrast, firing processes do not relate to incurring funds and thus the public does not need to know about the reasons of the firing.

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