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
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.

You might be interested in
Enter mia profit/loss for the 2 month
Tems11 [23]
She profits more each month
8 0
3 years ago
The notation is Y = GNP = national income C = consumption I = private investment G = government spending X = exports M = imports
IRINA_888 [86]

The true statement is <em>D. When </em><em>BCA</em><em> is negative, it implies that government </em><em>budget deficits</em><em> and/or part of </em><em>domestic investment </em><em>are being financed with </em><em>foreign-controlled capital</em><em>.</em>

The above statement is based on the intimate relationship between a country's Balance of the Current Account (BCA) and how the country finances its domestic investments and pays for government expenditure.

Explanation:

National income = Y = GNP

Consumption = C

Private Investment = I

Government spending = G

Exports = X

Imports = M

Taxes = T

Therefore, the BCA = X-M = (S-1) + (T – G)

Where BCA = Balance of Current Account

Thus, the Balance of the Current Account (BCA) should be <u>positive</u> to avoid deficit-financing of government budgets.

Learn more: brainly.com/question/8859561

3 0
3 years ago
Which of the following statements is TRUE?
shusha [124]

Strategic partnerships are seen as one of the foundations of supply chain management.

5 0
3 years ago
What federal agency is tasked with developing policies and procedures for emergencies that impact federal lands?
mariarad [96]
It can fall between Federal Emergency Management Agency (FEMA) or the U.S. National Guard (depends if the head of government for said state declared the are as in a state of emergency.<span />
3 0
3 years ago
Complete the statement about the compound interest expression.
Misha Larkins [42]

Answer:

The answer is "A"

Explanation:

Cumulative interests are counted by one plus the annual interest rate adjusted to the cumulative periods of less than one. The first principal sum is determined by one. The cumulative sum of the initial loan is then deducted from the calculation.

Formula:

A= \ p (1+ \frac{r}{n})^{nt} \\\\\ Where,\\ \\ A =  \ annual \ interest\\P = \ principal\\t= time\\r= rate

That's why we apply the above formula to calculate the annual interest rate.

5 0
3 years ago
Other questions:
  • On January 1, 2021, Tonge Industries had outstanding 480,000 common shares ($1 par) that originally sold for $30 per share, and
    13·2 answers
  • A homeowner decides to rent a spare bedroom in her single-family house to a tenant for $500 per month. When a 24-year-old man as
    9·1 answer
  • What are assets ? A. Money and other valuables belonging to an individual or business B. Assessments on a partnership such as ta
    8·1 answer
  • Why are jellyfish so jellyish
    13·1 answer
  • John, who has just completed his first finance course, is unsure whether he should take a course in business analysis and valuat
    9·1 answer
  • Someone speak please im well bored
    6·2 answers
  • Which part of your uniform must be worn at all times (select all that
    14·1 answer
  • A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually
    6·1 answer
  • Describe the auto industry in terms of the five market characteristics
    7·1 answer
  • Who will receive the vaccines if the university health center sells them for the $20.00 market price?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!