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
lana66690 [7]
3 years ago
14

Consider a corporate bond with a $1000 face value, 8% coupon with semiannual coupon payments, 7 years until maturity, and a YTM

of 9%. It has been 57 days since the last coupon payment was made and there are 182 days in the current coupon period. Calculate the dirty (cash) price for this bond.a).$1,000b).$948.89c).$989.48d).$961.42e).$942.61
Business
1 answer:
serious [3.7K]3 years ago
3 0

Answer:

$961.42

Explanation:

firstly, we calculate the clean clean price below:

FV= 1,000

PMT= 40 (80 / 2)

I= 4.5 (9 / 2)

N= 14 (7 × 2)

Thus, PV= 948.89

Accrued Interest = coupon × (days since last payment/days in current coupon period)= 40 × (57 / 182) = 12.53

conclusively, dirty price = 948.89 + 12.53 = 961.42

You might be interested in
Why family members left their family business and start their own business
netineya [11]
To become a self made person, this is because sometimes you want to prove people that even if your family is successful, you can be successful on your own too. I hope this makes sense.
4 0
2 years ago
Oucation 6 of 25
Vladimir79 [104]

Answer:

A. How are goods and services to be distributed?

Explanation:

After the manufacturing of the goods, the process of distribution proceeds. In this process, the goods and services produced are distributed from the producers to the consumers. Transportation, packaging, storage, and advertising are some of the processes that lie between the production and distribution of the products.

According to the given options, the basic question to be asked related to the distribution of the produced goods is option A. All the other three questions belongs to the production stage.

4 0
2 years ago
Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and polit
balu736 [363]
<span>Foreign firms should seek this sorts of alliances, because making them is a good way to obtain knowledge of local markets; contrast this to a foreign firm attempting to start up a branch on their own, perhaps in the form of a greenfield venture. They would potentially have to figure out local market conditions from scratch, whereas a local company would potentially have years of successful experience and knowledge already at their fingertips.</span>
8 0
3 years ago
You have just received a windfall from an investment you made in a​ friend's business. He will be paying you at the end of this​
ohaa [14]

Answer:

a. $80,318.70

b. $97,568.57

Explanation:

Here is the full question :

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 15 comma 555 at the end of this​ year, $ 31 comma 110 at the end of next​ year, and $ 46 comma 665 at the end of the year after that​ (three years from​ today). The interest rate is 6.7 % per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $ 15,555

Cash flow in year 2 = $31,110

Cash flow in year 3 =  $ 46,665

I = 6.7%

Present value = $80,318.70

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

$80,318.70(1.067)^3 = $97,568.57

3 0
3 years ago
The marginal utility curve is: A) upsloping because of increasing marginal opportunity costs. B) upsloping because successive un
kotykmax [81]

Answer:

D) downsloping because successive units of a specific product yield less and less extra utility.

Explanation:

The marginal utility curve is downsloping because successive units of a specific product yield less and less extra utility or benefits.

It gives the relationship between the utility derived from the consumption of an additional unit of a good and the quantity of the good consumed.

8 0
2 years ago
Other questions:
  • Tommy is from a small town and quit high school to get married. He and his wife have five kids, and his wife stays home with the
    13·1 answer
  • The most famous restrictive practices case of the last several decades involved a series of lawsuits by:
    8·1 answer
  • The economy is in the horizontal portion of the AS curve, investment spending is interest insensitive and there is no liquidity
    8·1 answer
  • Wiser Pharmaceutical has received a utility patent from the US Patent and Trademark Office. It sold this patent to another pharm
    15·1 answer
  • Factory overhead includes:_________.a. direct materials unansweredb. direct laborun answeredc. indirect labor unansweredd. depre
    12·1 answer
  • Assume that a war reduces a country's labor force but does not directly affect its capital stock. Then the immediate impact will
    11·1 answer
  • Threads Inc., an apparel manufacturer, employs personal selling to market goods. Its employees handcraft products that are then
    15·1 answer
  • Most employees who use flextime prefer to work independently of others. In order to accommodate this preference, businesses perm
    9·1 answer
  • Nika earns a gross pay of $73,000. Her total employee benefits are 22% of her gross pay and she has no job expenses. If Nika get
    12·1 answer
  • Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!