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skad [1K]
3 years ago
11

Lomack Company's bonds have a 8-year maturity, a 8% coupon, paid semiannually, and a par value of $1,000. The market interest ra

te is 5%, with semiannual compounding.What is the bond's price?A bond has an annual coupon rate of 3.5%, a face value of $1,000, a price of $1,125.1, and matures in 10 year.What is the bond's YTM?
Business
1 answer:
Vsevolod [243]3 years ago
8 0

Answer:

Bond Price = $1,196

YTM = 2.1000% or 0.0210

Explanation:

Given the maturity years = 8 years

Coupon rate = 8%

Par value = $1000

Market interest rate = 5%

Since there is semi annual compounding payment so the number of payments, N = 8 * 2 = 16  

Half year interest rate = I/Y = 5/2 = 2.5

Annuity payment or PMT = 0.08 × 1,000/2 = 40

FV = 1,000

CPT PV

Present value, PV = -1,195.82504

Price = $1,196

PMT = 1,000 × 0.035 = 35

Future value, FV = 1,000

Present value, PV = -1,125.1

N = 10

CPT I/Y

Now, I/Y = 2.1000

YTM = 2.1000% or 0.0210

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3 years ago
The costs of bringing a corporation into existence, including legal fees and promoter fees, are called:
Novay_Z [31]

Answer:

organization expenses.

Explanation:

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This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.

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The costs of bringing a corporation into existence, including legal fees and promoter fees, are called organization expenses.

7 0
3 years ago
Characteristics of capital projects include: Group of answer choices Involves long-lived assets Usually requires long-range plan
Verdich [7]

Characteristics of capital projects include (B) usually requires long-range planning and extensive financing.

<h3>What are capital projects?</h3>
  • A Capital Project is one that serves to maintain or improve a City asset, also known as infrastructure.
  • A project must meet ONE of the following requirements (criteria) to be included in the Capital Budget.
  • It is a project that involves the construction, enlargement, renovation, or replacement of an existing building or facilities.
<h3>Characteristics of capital projects:</h3>
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  2. A construction project is usually included.
  3. Long-term planning and extensive financing are usually required.
  4. Maintain a project-life emphasis rather than a year-to-year concentration.

Therefore, characteristics of capital projects include (B) usually require long-range planning and extensive financing.

Know more about capital projects here:

brainly.com/question/7442083

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Correct question:

Characteristics of capital projects include:

Group of answer choices -

(A) Involves long-lived assets.

(B) Usually requires long-range planning and extensive financing.

(C) Usually has a year-to-year focus.

4 0
2 years ago
Assume there are currently five firms producing and selling fertilizer in the South American market. Also assume that the produc
Jobisdone [24]

Answer:

It is given that in an oligopolistic market, there are at first five firms. At the point when the quantity of fums diminishes to three, it implies that the all out yield will likewise decrease. It is on the grounds that, all the makers are delivering separated items. The inventory of merchandise won't increment in light of the fact that the makers would have expanded the creation before, if that was conceivable. Hence, the balance amount will fall and in view of decrease in amount, cost will increase.

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3 0
3 years ago
SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3 per copy, 1.25 million copies are sold.
Lerok [7]

Answer:

A. $ 3,750,000

Explanation:

Given that

At lower price

A copy is $3

Copies sold = 1.25 million

Recall that

Total revenue = Price of good × quantity of goods sold.

That is, the total amount of money a seller obtains by selling goods or/and services to a buyer(s)

Thus

Total revenue at low cost

= 3 × 1.25 million

= 3.75 million

= $3,750,000

3 0
3 years ago
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