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zheka24 [161]
3 years ago
7

Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio

n:
N = 8 years INT = .025 or 2.5% PMT = $25 FV = $1,000 (par value)
What is the above bond issue worth in today's dollars?
a. $1,000
b. $1,181.63
c. $1,200.50
d. None of the above

Business
1 answer:
Elanso [62]3 years ago
5 0

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025]  +  1000 / (1+0.025)^8

Bond Price = $1000

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A​ company's external value delivery network consists of​ __________.
Phoenix [80]

The answer is D. A company’s external value delivery network consists of suppliers, distributors, and customers. Note that this list does not involve the internal divisions of the company nor its competitor, but only those that it corresponds with to be able to deliver their product or service.

6 0
3 years ago
Many stores now e-mail codes to their customers that can be used on their websites or printed and brought into the store to rece
uysha [10]

Answer:

Coupon

Explanation:

Coupons are documents, tickets, vouchers and so on that entitles the holder to a discount off a particular product or a group of products. It is a piece of paper enabling the holder or owner to purchase something without paying ot at a reduced cost. In this scenario, the customers are using coupon to receive discount on what is purchased. The coupons here are the email codes that can be used on websites or printed and brought to the stores.

6 0
3 years ago
Read 2 more answers
You are hosting a concert to fundraise for charity. You have to sell tickets to this event in order to raise money. The expenses
dimaraw [331]

Answer:

$9

Explanation:

100+60+50+60=270 270÷30=9

3 0
3 years ago
The non-institutional civilian population is 200 million, of which 140 million are employed and 10 million are unemployed. Based
saw5 [17]

Answer:

6.67%

Explanation:

The unemployment rate is computed by dividing the number of unemployed with the total number of people in labor force multiplied with 100. I.e

= ( Unemployed / Total number of people in labor force ) × 100

Given that;

Number of unemployed people = 10 million

Total number of people in labor force = 10million + 40 million = 150million

Therefore,

Unemployment rate = (10/150) × 100

Unemployment rate = 6.67%

8 0
2 years ago
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
romanna [79]

Answer :

Choose Project A. Because it has a positive Net Present Value.

Explanation :

Find the Net Present of the two project. Then choose the Project with the highest or positive Net Present Value.

Calculation of NPV of Project A using a Financial Calculator :

Project A:  

($125,000) CFj

$46,000         Cfj

$79,000         Cfj

$51,000         Cfj

i/yr             16.00 %

Shift NPV  $6,038.58

Calculation of NPV of Project B using a Financial Calculator :

Project A:  

($135,000) CFj

$50,000         Cfj

$30,000         Cfj

$100,000       Cfj

i/yr             16.00 %

Shift NPV  -$5,535.90

Conclusion :

Choose Project A. Because it has a positive Net Present Value.

3 0
3 years ago
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