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trapecia [35]
3 years ago
9

Red Mountain, Inc. bonds have a face value of $1,000. The bonds carry a 7 percent coupon, pay interest semiannual, and mature in

13.5 years. What is the current price of these bonds if the yield to maturity is 6.82 percent? A. $989.50 B. $994.56 C. $1, 015.72 D. $1.018.27E. $1, 020.00
Business
1 answer:
olganol [36]3 years ago
4 0

Answer:

R = 7% x $1,000 = $70

Po= R/2(1-(1+Kd/m)-nm/Kd/m + FV/(1+Kd/m)nm

Po = 70/2(1-(1+0.0682/2)-13.5x2/0.0682/2 + 1,000/(1+0.0682/2)13.5x2

Po = 35(1-(1+0.0341)-27/0.0341 + 1000/(1+0.0341)27

Po = 35(17.4663) + 1,000/2.4728

Po = $611.3205 + $404.40

Po = $1,015.72

The correct answer is C

Explanation:

The current price of a bond is equal to present value of coupon plus the present value of face value of the bond. The bond pays semi-annual interest, thus, we will divide the coupon by 2 and then determine the present value. The bond yield will also be divided by 2.

Po = Current price of the bond, R = Coupon, Kd = Bond yield, FV = Face value, n = Bond maturity and m = No of times coupon is paid in a year

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The <u>USGBC </u>and <u>LEED</u> work to create spaces that are better for the environment as well as healthier for people.

Explanation:

<u>USGBC-United States Green Building Council</u>

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3 years ago
Anne is meticulous when it comes to planning her weekly grocery store visits. Before buying anything, she makes sure that she is
vlada-n [284]

Answer:

Anne exhibits high level of product involvement.

Explanation:

Product involvement is the level of consumers interest in the product and the associated relationship of the consumer with the product.

As it is evident from the question that  Anne is well informed about the deals and has interest in knowing about the product before buying it. This indicates the high level of product involvement.

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3 years ago
All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, to
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Answer: Supply chain

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In simple words, supply chain can be defined as the network a company shares with its suppliers to effectively distribute goods to the consumer.

From the above explanation we can conclude that the right answer is SUPPLY CHAIN.

6 0
3 years ago
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In 2019, Wesley has a fairly simple tax situation with moderate wage income and a modest amount of interest income. Wesley, age
asambeis [7]

He may file Form 1040.

Explanation:

Form 1040 is the IRS standard form which is used by individual taxpayers to file their annual tax reports.

Form 1040 is the IRS tax form used mostly for personal tax returns submitted by US citizens by the federal government. Form 1040 is a form. The method estimates the taxpayer's gross taxable income and specifies how much the government has to pay or repay.

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3 years ago
Opera Corp uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost
Kryger [21]

Answer:

$159,057

Explanation:

The computation of cost of goods sold is shown below:-

Total cost of goods available for sale = (7,200 × $10) + (4,000 × $13) + (12,000 × $13.50)

= $72,000 + $52,000 + $162,000

= $286,000

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= 23,200

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Cost of Goods sold = Sold units during the month × Average cost per unit

= 12,900 × $12.33

= $159,057

Therefore for computing the cost of goods sold for the month we simply applied the above formula.

3 0
2 years ago
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