I need help on Personal Finance.

Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra

Tasya [4]

Answer:

Value of bond = $1,101.59

Explanation:

We know,

Value of bond = [I × $\frac{1 - (1+r)^{-n}}{r}$ ] + $\frac{FV}{(1+r)^{n}}$

Given,

Face value (FV) = $1,000.

Semiannual Coupon, I = FV x semiannual coupon rate = $(1,000 × 7.25%) ÷ 2 = 72.5 ÷ 2 = $36.25

Interest rate, r = 6.20% ÷ 2 = 3.10% = 0.031

Maturity, n = 15 years = 30 periods (As it is semi annual).

Therefore,

Value of bond = [$36.25 × $\frac{1 - (1 + 0.031)^{-30}}{0.031}$ ] + ($1,000 ÷ $1.031^{30}$ )

or, value of bond = ($36.25 × 19.3495) + $400.17

value of bond = $701.42 + $400.17

value of bond = $1,101.59

8 0

3 years ago

In this example of an "inflation cooling" tax increase, the economy was initially struggling with a ________ annual rate of incr

tia_tia [17]

Answer:

2.34

Explanation:

the economy was initially struggling with a 2.34 annual rate of increase in the price level.

4 0

3 years ago

Which of the following activities is NOT part of the 5-S approach?a. Standardize to establish accountability for ongoing cleanin

kozerog [31]

Answer:

b. Shorten the process cycle time

Explanation:

Which of the following activities is NOT part of the 5-S approach?a. Standardize to establish accountability for ongoing cleaning.b. Shorten the process cycle time.c. Sustain the effort through consistent attention.d. Straighten to organize everything.e. Store all spare parts in a centralized location.

4 0

4 years ago

Which of the following techniques can be used to narrow options for increased decision-making effectiveness? A. Applying differe

Pachacha [2.7K]

Answer:

A. Applying different analytical approaches.

Explanation:

In decision making, it is advisable to apply different analytical approaches. In doing this, you are able to know the pros and cons of the different approaches.

This will thus help one narrow options for increased decision-making effectiveness.

4 0

3 years ago

kane manages a used book store he reads a report advising him to stock more encyclopedias. however the report is mistaken custom

Dafna1 [17]

Kane manages a used book store he reads a report advising him to stock more encyclopedias. However the report is mistaken customers in Kane's town hardly ever buy encyclopedias. what problem could this mistake cause?

As mentioned below, if the consumers do not buy the encyclopedias, then they will lose money due to purchasing items that consumers do not want. It's necessary to not only look over reports, but understand the reports to make sure that a business is not overstocking in items that consumers are not actually in demand for. Consumers will purchase items they have a demand for and based on the reports, you can understand the items they are in demand for versus the items they will not be purchasing.

5 0

3 years ago

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