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
Murrr4er [49]
3 years ago
15

Item 1Item 1 Weismann Co. issued 11-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and

have a par value of $1,000. If the YTM on these bonds is 12 percent, what is the current bond price
Business
1 answer:
Mamont248 [21]3 years ago
8 0

Answer:

Price of the bond is $940.

Explanation:

Price of bond is the present value of future cash flows. This Includes the present value of coupon payment and cash flow on maturity of the bond.

As per Given Data

As the payment are made semiannually, so all value are calculated on semiannual basis.

Coupon payment = 1000 x 11% = $110 annually = $55 semiannually

Number of Payments = n = 11 years x 2 = 22 periods

Yield to maturity = 12% annually = 6% semiannually

To calculate Price of the bond use following formula of Present value of annuity.

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

Price of the Bond =$55 x [ ( 1 - ( 1 + 6% )^-22 ) / 6% ] + [ $1,000 / ( 1 + 6% )^22 ]

Price of the Bond = $55 x [ ( 1 - ( 1.06 )^-22 ) / 0.06 ] + [ $1,000 / ( 1.06 )^22 ]

Price of the Bond = $662.29 + $277.5

Price of the Bond = $939.79 = $940

You might be interested in
XYZ Inc. brings together specialists from production, marketing, and finance from around the world, and gives each such team the
koban [17]

Answer:

Cross- functional team

Explanation:

Cross- functional team, is the team which is defined as the group of people who came together with the different functional expertise of working against the common goal.

This team may involve the people from human resources, finance, operations and marketing department.

It occurs when the specialist from different areas are put on the same team. So, in this case, XYZ bring together the specialist, which implies that the firm is creating the team of cross- function.

6 0
3 years ago
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc
kvasek [131]

Answer:

Dr Investment in Nursery supplies $66 million

Cr Cash $66 million

Dr Investment in Nursery supplies $7 million

Cr Investment Revenue $7 million

Dr Cash $9 million

Cr Investment in Nursery supplies $9 million

No Entry

Explanation:

Preparation of the appropriate journal entries from the purchase through the end of the year.

Dr Investment in Nursery supplies $66 million

Cr Cash $66 million

(To record purchase of 25% shares for $66 million)

Dr Investment in Nursery supplies ($28 million x 25%) $7 million

Cr Investment Revenue $7 million

(To record investor share of investee's net income)

Dr Cash (18 million shares x 25% share x $2 per share) $9 million

Cr Investment in Nursery supplies $9 million

(To record receipt of dividend)

No Entry

5 0
3 years ago
White Pearl Cosmetics markets skin care products for teenage girls between 16 and 19. In approaching its international markets,
Anna35 [415]
I think (but I’m not sure) it’s global
3 0
2 years ago
Harold asks his prospects several questions to understand the reasons for their hesitation in buying his product. He tries to id
Fofino [41]

Answer:

fhuafuhfuhsuihfuishfdvbcgufjvhfigirhhjfhhhfhh

Explanation:

5 0
3 years ago
What is the main difference between private and government consumer advocacy employers?
sweet [91]

Answer:

Step-by-step explanation:

Step-by-step explanation:

Step-by-step explanation:

Explanation:

6 0
3 years ago
Read 2 more answers
Other questions:
  • The following market information was gathered for the corporation. The firm has 1,000 bonds outstanding, each selling for $1,100
    11·1 answer
  • Sarah is watching a baseball game and accesses the internet to look up stats for one of the players. In terms of integration of
    6·1 answer
  • The type of decision making a consumer uses for a product does not necessarily remain constant.why?​
    7·1 answer
  • As a delegate to the World Trade Organization, Kate stated during negotiations that the same rules and regulations that applied
    12·1 answer
  • What kind of drug test does homedepot do in the location of Johnston, rhode island
    5·2 answers
  • Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is
    15·1 answer
  • A Solutions Architect has a multi-layer application running in Amazon VPC. The application has an ELB Classic Load Balancer as t
    10·1 answer
  • Suppose that the supply schedule for tacos shows 300 tacos per day supplied at a price of $2.00 apiece. What must the demand sch
    9·1 answer
  • Which of the following is an example of a general partnership?
    6·1 answer
  • Employers often look for workers with knowledge in a particular field that
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!