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tigry1 [53]
3 years ago
8

You decide to invest in a bond with a 10% coupon paid semi-annually every February 1st and August 1st. The bond is currently sel

ling at an asking price of 101.25. What price should you pay for this bond today (if today's date is May 1st)? $1,012 $1,037.50 $1,012.50 $1,037
Business
1 answer:
Ksenya-84 [330]3 years ago
3 0

The question is missing an important information. 'The bond is currently selling at an asking price of 101.25' In this part there should have been a date at which date the bond was selling at 101.25.

Nevertheless, I will provide with the calculation, if you find out the date, just plug in the value in it and you will get the answer.

The bond price mentioned is $ 101.25 percent of par, which would be $ 1012.5. Since, it is asking for price at May 1st then you know that it has been 89 days since the last semi-annual coupon was paid ( February 1st (28) + March (31) + April (30)  = 89 days.

The missing date (from the question) will be divided by 89 days. The answer will be added to $1012.5.

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Rent received Rs. 10,000/-​
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Answer:

Okay, but where is the question or it's free points?

5 0
3 years ago
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Operating activities include long-term borrowing and repaying cash from lenders, and cash investments by or dividends paid to st
Phantasy [73]

Answer:

False (B)

Explanation:

Long-term borrowing & repaying cash from lenders

Long-term borrowing will be classified under financing activities as it represents capital sourced from loan investors (e.g Bondholders,Banks e.t.c). As for repaying cash from lenders, capital repayment will be classified under financing activities while interest is recognized either under operating or financing activity.

Cash investments by or dividends paid to stockholders.

Cash investment by stockholders will be categorized under financing activities while dividend paid can either be categorized as operating or financing activity.

4 0
3 years ago
The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $300.
arsen [322]

Answer:

Explanation:

a. QXd = 1,200 – 3PX – 0.1PZ

Pz = $300 and Px = $140, plugging the values, we get,

Qx = 1200 – 3*140 – 0.1*300.

Qx = 750 units.

Elasticity of demand = \deltaQx/\deltaPx * Px/Qx.

\deltaQx/\deltaPx = -3.

E = -3 * 140/750.

E = -0.56

The elasticity of demand is INELASTIC because the absolute value of elasticity is less than one. If the firm charges a price below $140it might lose out in revenue because the percentage change in demand is less than the price.

b. Px = $240, substituting this into the equation we get

Qx = 1200 – 3*240 – 0.1*300

Qx = 450 units.

E = -3 * 240/450.

E = -1.6

The demand is elastic because the absolute value is less than one. If the firm charges a price above $240 it might lose out on its revenue because the percent change in demand is more than the price.

c. Cross price elasticity of demand Es = \deltaQx/\deltaPz * Pz/Qx.

\deltaQx/\deltaPz = -0.1

Es = -0.1 * 300/750.

Es = -0.04

The goods are complements of each other. As the price of one increases, the demand for other would fall, and vice-versa is true.

4 0
3 years ago
On February 1, Hansen Company purchased $120,000 of 5%, 20-year Knight Company bonds at their face amount plus one month's accru
Alisiya [41]

Answer:

$5,000

Explanation:

interest earned on the first coupon = ($120,000 x 5% x 6/12) - ($120,000 x 5% x 1/12) = $2,500

interests earned until October (for the $40,000) = $40,000 x 5% x 3/12 = $500

interests earned until December (for $80,000) = $80,000 x 5% x 6/12 = $2,000

total interest earned during the year = $2,500 + $500 + $2,000 = $5,000

3 0
3 years ago
Type of e-commerce busniss​
SIZIF [17.4K]

Answer:

types of e commerce buissness are

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1) buissness to buissness (B2B)

2) buissness to consumer (B2C)

3) consumer to consumer (C2C)

4) consumer to buissness (B2C)

5) buissness to administration (B2A)

6) consumer to administration (C2A)

Explanation:

hope it helps❤️

4 0
3 years ago
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