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jeka94
3 years ago
6

A bond with a $1,000 face value and an 8 percent annual coupon pays interest semiannually. The bond will mature in 15 years. The

yield to maturity is 11 percent. The price of the bond should be: Do no round intermediate computations. Round the final answer to two decimal places.
Business
1 answer:
Keith_Richards [23]3 years ago
7 0

Answer:

$781.99

Explanation:

The price of the bond can be computed using excel pv function given below:

=-pv(rate,nper,pmt,fv)

rate is the semiannual yield to maturity i.e11%*6/12=5.5%

nper is the number of semiannual coupons the bond would i.e 30 semiannual coupons in 15 years

pmt is the amount of semiannual coupon=$1000*8%*6/12=$40

fv is the face value of $1000

=-pv(5.5%,30,40,1000)=$781.99  

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Mercury Corporation issued 7,000 shares of no-par common stock for $15 per share. Mercury also issued 2,800 shares of $70 par, 6
inessss [21]

Answer:

Issue of  7,000 shares of no-par common stock for $15 per share

Financing Activity (FA).

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

Financing Activity (FA)

Explanation:

Issue of  7,000 shares of no-par common stock for $15 per share

This represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

This transaction also represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

7 0
3 years ago
Read 2 more answers
A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s
alexira [117]

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

4 0
3 years ago
Noma plans to save $3,400 per year for the next 35 years. If she can earn an annual interest rate of 9.2 percent, how much will
maksim [4K]

Answer:

c) $767,464.54

Explanation:

The computation of the future value of an annuity is shown below:

As we know that

Future value of annuity F =  Payment made × ((1 + rate of interest)^t - 1) ÷ r ate of interest

= $3,400 × (1.092^35 - 1) ÷ 0.092

= $3,400 × 225.7249

= $767,464.54

Hence, the future value of an annuity is $767,464.54

Therefore the correct option is c.

3 0
3 years ago
One external factor that can lead to aggressive behaviors is ________, which occurs when goal-directed behaviors are blocked. A
kirill115 [55]

Answer: Frustration

Explanation:

 Frustration is one of the general emotions in the psychology that basically refers to the annoyance, disappointment and the anger. It basically arises due to the unsuccessful and when the individual goals are blocked or not completed.

Frustration is basically refers to the negative behavior and it also lead to demotivate the person towards their goals and it result due to the interpersonal interaction with others.

Therefore, Frustration is the correct answer.

3 0
3 years ago
Some poople argue that the only beneficiary of the entrepreneurial wealth is the entreprenceur him/herselt Do you agree? Why or
Ugo [173]

I do not agree that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself.”

The entrepreneur may be the chief beneficiary when she is alive to reap the rewards of their entrepreneurial efforts. But, she is certainly not the only beneficiary of the entrepreneurial wealth that she creates. Nobody works in isolation. When the entrepreneur commences her business, society as a whole benefits because any individual wealth created increases the wealth of the nation and the world. She only gets the profit share of the created wealth. Customers who patronize her services and goods also derive satisfaction of needs (utility or value). The entrepreneur's wealth is also shared to the government in form of taxes. Suppliers of primary goods and services also share in the wealth of the entrepreneur. And employees of the entrepreneur also take a large share of the created wealth.

But, who is an entrepreneur? She is somebody who assumes some entrepreneurial (first-time) risks in order to set up a business for the manufacture or provision of goods and services for the purpose of profit. Her business may not be profitable in the short-run. She can even lose tons of money initially until the profit stage sets in. As she preserves, the profits will start rolling in, provided she had done her homework well.

8 0
2 years ago
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