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Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemp

finlep [7]

Answer:

$ 915.71

Explanation:

In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.

=nper(rate,pmt.-pv,fv)

rate is the semiannual interest rate of 6% (12%*6/12)

pmt is the semiannual interest=$1000*8.3%*6/12=$41.50

pv is the current price at $813.04

fv is the face value of $1000

=nper(6%,41.50,-813.04,1000)= 16.00

The years to maturity=16/2=8 years

The years to maturity of second bond=8+3=11 years

price of second bond=-pv(rate,nper,pmt,fv)

rate is 6%

nper is 11 years multiplied by 2= 22

pmt =5.3%*$1000=$53

fv is $1000

=-pv(6%,22,53,1000)=$915.71

5 0

3 years ago

Read 2 more answers

If an agent injures a third party during the course of employment, to what extent should the employer be held liable? Under what

postnew [5]

Answer:

The employer will be held liable.

Explanation:

If the external agent brings harm or injury to a third party in the course of an employment, the employer is held liable. When a principal directs an agent to commit for a tort or if the principal is aware of the consequences of carrying the instructions of the agent could cause harm or injure the person, then the principal is liable.

It is called direct liability.

The liability for the intentional tort which is imputed to the principal when the agent acts to further the business of the principal.

The agent is personally liable under the following circumstances :

Foreign principal
Agent signs the contract in his own name
Non-existent principal
Principal cannot be sued:
Undisclosed principal

Example :

A credit card company hires a sales person and offers a company van to make sales in that area. The sales person uses the office van to official purposes. But one night, he drove the car to a friend's party and while coming he drove over a pedestrian. In this case, the owner of the company will not be held liable as the sales person uses the company van for his personal use while going out for party with his friends. While causing the accident, the sales person was not not using the office van for official purposes and was not tendering official duties at that time.

3 0

3 years ago

A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:

zalisa [80]

Answer:

Adventure Travel Service

Statement of cash flows for the year ended April 30, 2019

Cash flow from Operating Activities

Cash receipts from customers $2,080,000

Cash payments for operating expenses ($1,706,000)

Net Cash from Operating Activities $374,000

Cash flow from Investing Activities

Purchase of land ($400,000)

Net Cash from Investing Activities ($400,000)

Cash flow from Financing Activities

Cash receipt from owner as investment $60,000

Drawings ($40,000)

Net Cash from Financing Activities $20,000

Movement in Cash and Cash Equivalents ($6,000)

Beginning Cash and Cash Equivalents $203,000

Ending Cash and Cash Equivalents $197,000

Explanation:

The Statement of Cash flows shows the results of cash from the following sources : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.

4 0

2 years ago

Trina wants to be a nurse practitioner or doctor for her future career. Which CTSO would be best for Trina to join?

natita [175]

Answer: HOSA

Explanation:I just took the test, and it means Health Occupations Student of America . Which prepares student for healthcare careers

3 0

2 years ago

During 2013, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $33,000. The business paid divi

loris [4]

Answer: the correct answer is $7,000

Explanation:

Revenues $60,000

Expenses ($33, 000)

Paid Dividens ($20,000)

Equity $7,000 ($60,000-$33,000-$20,000)

4 0

3 years ago