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algol [13]
3 years ago
5

Gugenheim, Inc., has a bond outstanding with a coupon rate of 5.8 percent and annual payments. The yield to maturity is 7 percen

t and the bond matures in 14 years. What is the market price if the bond has a par value of $2,000?
A. $1,790.11
B. $1,825.91
C. $1,788.00
D. $1,792.86
E. $1,795.22
Business
1 answer:
shusha [124]3 years ago
8 0

Answer:

The market price if the bond has a par value of $2,000 is A. $1,790.11

Explanation:

The Market Price, PV of the Bond can be determined as follows :

PMT = $2,000 × 5.80% = - $116

P/yr = 1

YTM = 7 %

n = 14

Fv = - $2,000

Pv = ?

Using a financial calculator, the Market Price, PV is $1,790.1088 or $1,790.11.

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Answer:

The total rise in income is $30,000

Explanation:

The computation is shown below:

Sale price     3     {5 × (1 - 0.40)

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Increase in income per unit   0.50

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Total increase in income   $30,000

Hence, the total rise in income is $30,000 and the same is to be considered

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The Fair Labor Standards Act (FLSA) states that working over 40 hours in a 168 hour period is counted as overtime

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