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
Anastasy [175]
3 years ago
12

Grand Adventure Properties offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the ma

turity date is 8 years from today. What is the market price of this bond if the face value is $1,000?
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
7 0

Answer:

The market price of this bond is: $1,069.8.

Explanation:

To calculate the market price of the bond, we have to use the following formula:

Bond Price= C*((1-(1+r)^-n)/r)+(F/(1+r)^n)

C= periodic coupon payments: $1,000*7%= $70

F= Face value: $1,000

r= Yield to maturity: 5.85%

n= No. of periods until maturity: 8 years

Bond Price= 70*((1-(1+0.0585)^-8)/0.0585)+(1,000/(1+0.0585)^8)

Bond Price= 70*((1-0.635)/0.0585)+(1,000/1.58)

Bond Price= 70*6.24+633

Bond Price= 436.8+633

Bond Price= 1,069.8

You might be interested in
Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi
frez [133]

Answer:

d. $96,914

Explanation:

Parker Co. can execute money market hedge in following steps:

(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)

so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.

(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428

(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days ; $96,914 = $91,428 * (1+6%)

3 0
3 years ago
Project managers should try to _____ the size of teams or subteams to avoid making communications too complex.
natta225 [31]

Project managers should try to limit and decrease the size of teams or subteams to avoid making communications too complex.

<h3>How do project managers manage communication in the workplace?</h3>

Successful project managers communicate through a variety of channels using both formal and informal means. This increases the likelihood that messages will be received. To lessen the likelihood of a communication breakdown, use straightforward language, stay on topic, keep messages brief, and provide all the information in one location.

6 effective methods for project team communication

1. Gather frequently. Hold regular team meetings to discuss strategies. ...

2. Be welcoming. ...

3. Be frank, precise, and succinct. ...

4. Display some decency. ...

5. Realize that you might not always be right. ...

6. Utilize online teamwork tools.

To know more about communication management, visit:

brainly.com/question/1165906?

#SPJ4

3 0
1 year ago
A customer places an order to buy 1,000 shares of a stock at $40. The registered representative enters the order. After executio
tatiyna

Answer: C. II and III

Explanation:

The customer ordered for 1,000 shares of a stock at $40 and so this is what the registered representative should give the customer. As such, if in the first place the order was possible to be done, then it will have to be done now and the registered representative's firm are obligated to provide the amount in question.

Any costs associated with filling the remaining 900 share order is the responsibility of the firm and not of the customer as they made the error not the customer.

3 0
3 years ago
Spending more money on homes and making the home environment pleasurable is a result of which consumer buyer behavior trend?
allochka39001 [22]
<span>This behavior trend where a consumer spends money on homes to make it pleasurable environment is called as cocooning. Cocooning means staying in a protective and comfortable way or place. It even means hiding yourself from real world which may not always be a ideal place.</span>
3 0
3 years ago
Heavy​ Products, Inc. developed standard costs for direct material and direct labor. In​ 2017, AII estimated the following stand
Nitella [24]

Answer:

Direct labor efficiency variance= 0

Explanation:

Giving the following information:

Direct labor 0.2 hours $ 35 per hour. During​ June, Heavy Products produced and sold 16,000 containers using 3,200 direct manufacturing labor-hours at an average wage of $ 51.00 per hour.

Direct labor efficiency variance= (Standard Quantity - Aactual Q)*standard rate

Direct labor efficiency variance= (0.2*16,000 - 3,200)*35= 0

5 0
3 years ago
Other questions:
  • Brenda is a new employee orientation trainer for a global corporation with subsidiaries all over the world. She needs to convey
    9·1 answer
  • Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations ma
    12·1 answer
  • A sequence of organizations that directs a product from the producer to the ultimate user is called a(n) _____.
    9·1 answer
  • A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve
    12·1 answer
  • Marigold Corp.'s account balances at December 31, 2020 for Accounts Receivable and the related Allowance for Doubtful Accounts a
    12·1 answer
  • Geneva Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months ea
    8·1 answer
  • The balanced scorecard approach
    8·1 answer
  • Your portfolio is 230 shares of Barden, Inc. The stock currently sells for $93 per share. The company has announced a dividend o
    14·1 answer
  • To determine the consumer price index (CPI), _____. a. only the current market basket at current prices needs to be known. b. th
    9·1 answer
  • 12. What is the tendency of suppliers to offer more of a good at a higher price?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!