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
Zina [86]
4 years ago
14

Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 3%. The

yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
Business
1 answer:
bixtya [17]4 years ago
7 0

Answer:

$698,495

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.

As per given data:

Face Value = $1,000,000

Coupon Payment = $1,000,000 x 3% x 6/12 = $15,000 semiannually

YTM = 11.00% annually = 5.50% semiannually

Numbers of period = 5 years x 2 = 10 periods

Formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Placing values in the formula

Price of the Bond = 15,000 x [ ( 1 - ( 1 + 5.5% )^-10 ) / 5.5% ] + [ $1,000,000 / ( 1 + 5.5% )^10 ] = $113,064 + $585,431 = $698,495

You might be interested in
To effectively positioning a product or brand, companies take four steps: (1) __________; (2) discover how target customers rate
elena-s [515]

Answer:

The step which is followed first is shown below:

Explanation:

The key or vital positioning of the brand or product effectively is to discover the perceptions of the customers. While determining the positioning in the companies as well as customers, it involve four steps, from which the first and foremost step which is to be taken is as:

Identify or Acknowledge the vital attributes for the class of the brand or the product.

This is the very first step while positioning the product or brand is to recogize the attributes necessary for the product class.

7 0
3 years ago
While gross domestic product (gdp) considers where the production occurs, ________ considers who is responsible for the producti
postnew [5]

Answer: Gross national product (GNP)

Explanation: Gross domestic produce refers to the market value of all final goods and service produced withing the domestic territory of a country. It considers where the production occurs. While, GNP refers to the market value of final goods produced by factors of production owned by a country's residents. Thus, GNP considers who is responsible for the production.

Thus, correct option is <em>Gross National Product</em> (<em>GNP</em>).

5 0
4 years ago
Zhang Industries budgets production of 300 units in June and 310 units in July. Each finished unit requires 4 pounds of raw mate
Mekhanik [1.2K]

Answer:

The budgeted cost of purchases for raw material K for June is 1,212 pounds.

Explanation:

Computation of budgeted cost of purchase for raw material is shown below

= Required production + ending raw material inventory - opening raw material inventory

where,

Required production = June units × required units

                                = 300 × 4 pounds

                                = 1,200 pounds

Ending raw material inventory = 30 % of July units × required units

                                                = 30% × 310 units × 4 pounds

                                                = 372 pounds

Opening raw material inventory = 360 pounds

Now, put these values on the above equation

So, raw material purchase = 1,200 + 372 - 360 = 1,212 pound

Thus, the budgeted cost of purchases for raw material K for June is 1,212 pounds.

6 0
4 years ago
A thrifty shopper wants to purchase a new phone that is made with quality parts. What factors should they consider?
kykrilka [37]

People have different kinds of preference. The factor that should they consider is High quality phones contain are earth metals that are a more scarce resource and cost more to the consumer.

  • There are some traces of Rare earth metals in different quantities found in smartphones. They includes; Neodymium, dysprosium, praseodymium, terbium, etc., which are found inside displays and other electronic parts of smartphones.

These rare earth metals used in high quality smartphones is known to  give a   striking  beautiful colors such as green, blue, etc., due to their luminescent property. They are known to also make smart-phones vibrate amidst other functions.

Learn more about smartphones from

brainly.com/question/917245

5 0
3 years ago
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $10,800. What is the maturity value of the
Bumek [7]

Answer: $11232

Explanation:

The maturity value of the note on March 1 will be calculated as thus:

Face value = $10800

Interest on note = $10800 × 12% × 120/360 = $432

Maturity value will now be:

= Face value + Interest on note

= $10800 + $432

= $11232

5 0
3 years ago
Other questions:
  • ________ unemployment is the natural movement of workers into and out of jobs, such as when a person quits one job without first
    13·1 answer
  • Cool Air​ Inc., manufactures single room sized air conditioners. The cost accounting system estimates manufacturing costs to be
    5·1 answer
  • Work-family conflicts can be social or emotional.T/F
    5·1 answer
  • Jade jewelers issued 15,000 shares of $1 par value stock for $20 per share. what is true about the journal entry to record the i
    14·1 answer
  • Lindsey holt owns stock in the galloway gems company. she knows she will receive a $1.50 dividend each quarter. given this, you
    12·1 answer
  • The stock ABC has a beta of 1.6 and its standard deviation is 30%. Its correlation coefficient with the market return is 0.8. Wh
    10·1 answer
  • Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first
    9·1 answer
  • ou are considering a stock investment in one of two firms (A and B), both of which operate in the same industry. A finances its
    5·1 answer
  • Define private equity funds economics. ​
    7·1 answer
  • A price searcher
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!