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
Paul [167]
3 years ago
9

Chris pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year l

ater, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is:A. $10,000.B. $700.C. greater than $10,000.D. less than $10,000.
Business
1 answer:
maksim [4K]3 years ago
7 0

Answer:

D. less than $10,000.

Explanation:

As for the provided information we have,

Bond face value = $10,000

Coupon rate = 6%

Maturity value = $10,000

Rate of interest = 7%

Number of period = 1

Bond value = C \times (\frac{(1- \frac{1}{(1 + 0.07)^1})}{0.07} ) + \frac{10,000}{(1 + 0.07)^1}

Where, C = $10,000 \times 0.06 = $600

Now putting values we have,

Bond value = 600 \times (\frac{(1- \frac{1}{(1 + 0.07)^1})}{0.07} ) + \frac{10,000}{(1 + 0.07)^1} = 9,906.67

Since the value is less than $10,000

Correct option is :

D. less than $10,000.

You might be interested in
Mahmoud wants to start a business making designer chairs. To do this he will need:​
prisoha [69]
Mahmoud will be needing many things such as. A loan of money , Maybe a wed site to spread him company so more people can see it and materials to build chairs such as wood , springs , foam.
4 0
2 years ago
Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year, accounts receivable decreased by
stepan [7]

Answer:

a. used net cash of $2,000

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net loss -$13,000

Adjustment made:

Add : Depreciation expense $4,000

Add: Decrease in accounts receivable $5,000

Less: Increase in inventory -$8,000

Add: Increase in accounts payable $10,000

Total of Adjustments $11,000

Net Cash flow from Operating activities                   -$2,000

6 0
3 years ago
Which conclusion is best supported by the data in the graph?
maria [59]

Technology is a growing part of the US economy.

The four largest manufacturing industries in America are computers and electronics; chemicals; food, beverages, and tobacco; petroleum and coal—account for about 51 percent of manufacturing GDP. The top nine sectors constitute approximately 79 percent of manufacturing GDP. These sectors accounted for 68 percent of total manufacturing employment in 2010.

From the above graph, we can see clearly that the technology sector had increased from $225billion in 2006 to about $360billion in 2011, which is about a 60% increase in a span of 5 years, thats a massive growth within a short period.

8 0
3 years ago
Read 2 more answers
Without _____, leaders can miss important signals that something is going wrong. question 2 options:
lisabon 2012 [21]
<span>Without feedback, leaders can miss important signals that something is going wrong.
</span><span>A communication path between them and their employees (a feedback) is very important in order the leaders to be successful and to achieve the desired results and goals.</span>
4 0
3 years ago
why did aig get bailed out while lehman brothers did not? group of answer choices it had a stronger balance sheet lehman brother
GarryVolchara [31]

Because all other big financial corporations would have failed due to the prospect of systemic risk, aig received bailout money while Lehman Brothers did not.

The process of raising money or capital for any form of spending is referred to as finance. It involves directing different sources of funding, such as credit, loans, and investment money, to the businesses that can use them most effectively. The definition of finances according to Finance Box is "The money that people, businesses, or national economies earn and spend." Risk is the potential for bad things to happen, to put it simply. Risk refers to uncertainty on how a certain action will affect or have implications for a human value (such as one's health, well-being, wealth, property, or the environment), frequently focused on unfavourable outcomes.

Learn more about Risk  here

brainly.com/question/17284407

#SPJ4

3 0
1 year ago
Other questions:
  • Which of the following statements are in accurate?1. There is substantial agreement about how and when markets fail.2. There is
    13·1 answer
  • A company acquires all of the voting stock of Previn Company, and records the transaction by debiting "Investment in Previn Comp
    7·1 answer
  • Write a report on a trend in business that you’ve observed, and highlight at least the main finding. For example, from the risin
    9·1 answer
  • The Tragedy of the Commons Select one: a. occurs when social incentives are in line with private incentives. b. is only applicab
    8·1 answer
  • Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction
    6·2 answers
  • A furniture dealer purchased a desk for $150 and then set the selling price equal to the purchase price plus a markup that was 4
    6·1 answer
  • What was the CEO of Tyco accused of doing?
    9·1 answer
  • A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary lo
    14·1 answer
  • Stephanie has been segmenting the market to help her grow her catering business. She is now at final stage in the segmentation p
    8·1 answer
  • from a profit perspective, it makes sense for firms to disperse their productive activities to those countries where they can be
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!