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
sammy [17]
3 years ago
8

Leahy Corp. sells $300,000 of bonds to private investors. The bonds are due in five years, have an 6% coupon rate, and interest

is paid semiannually. The bonds were sold to yield 4%. What proceeds does Leahy receive from the investors (exclude any issuance costs/fees paid to bankers) (hint: refresh your bond pricing knowledge from managerial finance)? Question 10 options: a) $274,345 b) $300,000 c) $299,999 d) $326,948
Business
1 answer:
Damm [24]3 years ago
3 0

Answer:

$326,948 ,

Explanation:

The computation of the proceeds leahy received from the investors is shown below:

Present value of the bonds = Stated semi-annual interest x PVIFA 4%, 10 years + Maturity amount x PVIF 4%, 10 years

= ($300,000 × 6% ÷ 2) ×  8.98258 + $300,000 x 0.820348

= $326,948

Refer to the PVIFA table and PVIF table

Moreover in the semi annual, the rate of interest is half and the time period is doubles

You might be interested in
Dan saves a portion of his income in an interest-earning account. in the loanable funds market, dan is:________
AlexFokin [52]

Answer:

Dan is the "supplier" of the funds

Explanation:

Given their willingness to lend their money, savers in this marketplace are on the supply side of the economy.

What is the loanable fund market?

The market that connects savers and borrowers is the loanable funds market.

Model of the market for loanable money

To make what occurs in the economy when borrowers and savers interact more understandable, the loanable funds market model is utilized. A modification to the market model for commodities and services is the market model for loanable funds. In this hypothetical scenario, the exchange of money takes the place of a good and the interest rate replaces the price. In essence, it describes how loans are made and borrowed money is exchanged between borrowers and lenders.

To know more about the loanable fund market visit:- brainly.com/question/15851247

#SPJ4

3 0
2 years ago
Mr. Henshaw, CEO of MBA Bank, decides that the organization needs to provide more convenient service to customers. He decides to
ANTONII [103]

Answer: unfreezing

Explanation:

The unfreezing stage of Lewis change process is being regarded as the first stage of change, and in this stage, an organization is being prepared and accept that change is inevitable and necessary and that existing status quo should also be broken.

This is illustrated in what Mr. Henshaw, CEO of MBA Bank did, by deciding that the organization needs to provide more convenient service to customers.

6 0
3 years ago
At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $51,500 with a yie
wolverine [178]

Answer:

Angela's income interest is $772,500‬

Explanation:

Income interest at 1st Semiannual duration

Semi annual interest = $51,500*6%*(6/12)= $154,500

Income interest at 2nd Semiannual duration

Note New Principal for 2nd year will be =$51,500+$154,500= $206,000

Semi annual interest = ($51,500+$154,500)*6%*(6/12)= $618,000‬

There fore Total income = $154,500+$618,000‬= $772,500‬

5 0
3 years ago
Suppose that a firm’s recent earnings per share and dividend per share are $2.50 and $1.50, respectively. Both are expected to
Elis [28]

Answer:

D0 1.50

D1 1.60

D2 1.78

D3 1.94

D4 2.12

D5 2.31

Price of the stock after 5-year $ 77

PV $ 81.75

Explanation:

Earning per share 2.5

Dividend per share 1.5

grow ratio 9%

P/E ratio 24

within 5 year is expected to fall to 20

We solve for the dividend by multiplying the dividends by the grow rate of 9%

We solve for the earning after 5 years:

Principal \: (1+ r)^{time} = Amount

Principal 2.50

time 5.00

rate 0.09000

2.5 \: (1+ 0.09)^{5} = Amount

Amount 3.85

Then we multiply by 20 to get the value of the stock:

$ 3.85 x 20 = $ 77

We solve the horizon value:

\frac{D_1}{r-g} = PV\\\frac{D_0(1+g)}{r-g} = PV\\

\frac{1.5(1+0.09)}{0.11 - 0.09} = PV\\

PV $ 81.75

7 0
3 years ago
Which section of the balance-of-payments statement summarizes u.s. trade in currently produced goods and services?
NikAS [45]

US commerce in goods and services that are now being produced is outlined in the balance of payments statement's current account section.

<h3>What does a favorable or unfavorable trade balance mean?</h3>

A surplus in trade is shown by a positive trade balance, while a deficit in trade is indicated by a negative trade balance. The BOT is crucial in figuring out a nation's current account. The following equation can be used to determine the trade balance: The value of goods and services sold to customers in other nations is known as the value of exports.

<h3>The balance of payments categorizes transactions into which accounts?</h3>

Transactions are split between the current account and the capital account in the balance of payments. When a distinct, typically very modest capital account is reported separately, the capital account is occasionally referred to as the financial account. Transactions in commodities and services are included in the current account.

<h3>What is the current trade balance?</h3>

For a country, the trade balance includes both exports and imports. This element makes up the majority of the current account, which is also the balance of payments' biggest component. Trade deficits are beneficial for emerging countries even if the majority of countries want to avoid them.

Learn more about balance of trade:

brainly.com/question/26964298

#SPJ4

8 0
1 year ago
Other questions:
  • if data links connecting different parts of the united states were to fail, gdp would fall. if, on the other hand, the network o
    12·1 answer
  • When the Fed decreases the money supply, we expect
    14·1 answer
  • This term refers to the length of a training session:
    13·1 answer
  • Read the following sentence, and determine which technique is most applicable to improve its readability.
    12·1 answer
  • Turquoise and Topaz Sisters had retained earnings of $10,000 on the balance sheet but disclosed in the footnotes that $2,000 of
    12·1 answer
  • Government payments to suppliers are called excise taxes. <br> True<br> or <br> False
    13·2 answers
  • During the current year, Orr Company incurred the following costs: Research and development services performed by Key Corp. for
    13·1 answer
  • Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and
    5·1 answer
  • ABC Corporation owns a factory. They are selling the factory to Amalgamated Corp. The lawyer for ABC Corporation writes the deed
    10·1 answer
  • How to get rid of detrimental body language in the negotiation
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!