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Pavlova-9 [17]
3 years ago
9

Consider the following bond quote: a municipal bond quoted at 101.25. If the municipal bond has a par value of $5,000, what is t

he price of the bond in dollars?
Business
1 answer:
Elena L [17]3 years ago
5 0

Answer:

= $5,062.5

Explanation:

A municipal bond represents a security usually of debt used primarily for capital expenditure financing by the government of a municipality, a state or a county. Such capital expenditure includes building infrastructures such as roads, schools, hospitals, bridges among several others.

Municipal bonds are usually exempted from taxes; federal taxes and even in quite a number of states both the state and the local taxes. This is done to motivate the people to purchase the bonds.

To calculate the price of the bond in dollars, the step is to

Multiply the Municipal bond quote (in percentage) by the Municipal bond par value

= Municipal bond quote = 101.25%

Municipal bond par value= $5,000

= 101.25% x $5000

= $5,062.5

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Some of the social factors that have led to unemployment in South Africa amongst the youth are:

  • High population growth.
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As a result of high population growth, the number of youth in South Africa  has increased to a point where getting jobs for all of them is quite difficult.

High poverty rates also mean that a lot of the youth are unable to afford a tertiary education which means that they are unable to get the qualifications needed for a job.

Find out more on factors leading to unemployment at brainly.com/question/305041.

6 0
2 years ago
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Define the following terms in your own words?
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3 years ago
Marketing managers can choose between three possible global ______, which range from selling the same product to introducing an
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2 years ago
For each of the following corporate formations, (1) write the amount of gain or loss that will be recognized by the shareholders
Maslowich

Answer:

Back Stop, Inc.

1. The amount of gain or loss that will be recognized by the company:

a. $30,000 gain

b. $80,000 loss

2. The corporation's basis in the property after the transfer:

a. $150,000

b. ($80,000)

Explanation:

1) Data and Calculations:

a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000

b. Unrealized loss $80,000 Capital, Kelly $80,000

2) The building contributed by Kelly is worth $150,000 for the corporation.  However, the contribution by John is worth nothing in real terms.  Instead, an unrealized loss is being suffered by the corporation.

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Using a company's cost of capital to evaluate a project is:
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Answer: Option C  

             

Explanation: In simple words, cost of capital refers to the amount of return that the investor are expecting for tasking the risk of investing in the company. In other words, it is the amount the company has to offer in return to the investors for attaining the capital from the market.

Often the cost of capital is used to evaluate the profitability of the project, that is, if the return in project is higher than the cost of financing it should be taken by the company.

However there are other component while evaluating a project that is risks associated with it. Risk of every projects is different from the other and hence only those project should be evaluated on the basis of cost of capital that is similar to the company's average.

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