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Fiesta28 [93]
3 years ago
8

Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM

of 5.31 percent and mature in 30 years. If we assume semiannual compounding, at what price will the bonds sell?
Business
1 answer:
frutty [35]3 years ago
4 0

Answer:

The bond will sell at $4831.43

Explanation:

Given C = 0, FV = $1000, YTM= 5.31%, n =30 years

BV= ?

BV for a zero coupon bond is = F / (1+r)^-n*t

So we are told there is semi annual compounding

have to calculate

n = 30*2 = 60 periods

r = 5.31/2 = 2.66%

BV = 1000/(1+0.0266)^-60

      =$4831.43

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RUDIKE [14]

Answer:

This responsiveness also promotes the local market orientation of a subsidiary and therefore the strength of its existing network with the businessmen and government authorities.

Explanation:

Usually, firms working within the global market confront two sorts of competitive pressure. They face pressure to scale back costs and pressure to react locally. These competing forces throw a corporation into conflict. It's going to also need a corporation to supply a consistent product on the international market to downstream the experience curve as soon as feasible. In response to local pressures, however, it's necessary for a firm to differentiate its product offering and marketing strategy from one country to a different in an effort to satisfy the various demands arising from domestic consumer preferences, business practices, channels of distribution, competitive conditions and public policies. Because it's going to entail substantial redundancy and a scarcity of product standards to adapt products to varied domestic needs, the result could also be a rise in prices.

While some organizations, like Company A, face a high to scale back cost and low for the reaction of locally, while others, like Company B, face low to scale back costs and high for local reaction, many companies are within the situation of Company C.  It suggests and supports three layers of variables, including environmental, structural, and organizational responsiveness. The analysis of 168 MNE companies within the People's Republic of China shows that environmental complexity and therefore the uniqueness of business culture increase local reaction. Structural variables like the intensity of competition, heterogeneity of demand and localisation of components increase local reaction.

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2 years ago
Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.
Vlada [557]

Question Completion:

Dec.  13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.

Answer:

Journal Entries:

Jan. 27 Debit Cash $9,595

Credit Notes Receivable (Miranda Lee) $9,500

Credit Interest Revenue $95

To record the full settlement of note and interest.

Mar. 3 Debit Notes Receivable  (Tomas Company) $5,000

Credit Accounts Receivable (Tomas Company) $5,000

To record the acceptance of a 10%, 90-day note.

17 Debit Notes Receivable (H. Cheng) $2,000

Credit Accounts Receivable (H. Cheng) $2,000

To record the acceptance of a 30-day, 9% note

Apr. 16 Debit Accounts Receivable (H. Cheng) $2,015

Credit Notes Receivable (H. Cheng) $2,000

Credit Interest Revenue $15

To record the dishonoring of Cheng's note.

May 1 debit Allowance for Doubtful Accounts $2,105

Credit Accounts Receivable (H. Cheng) $2,015)

To record the write-off of H. Cheng's account.

June 1 Debit Cash $5,125

Credit Notes Receivable (Tomas Company) $5,000

Credit Interest Revenue $125

To record the full settlement of Tomas' account.

Explanation:

a) Data and Calculations:

Jan. 27 Cash $9,595 Notes Receivable (Miranda Lee) $9,500  Interest Revenue $95

Mar. 3 Notes Receivable  (Tomas Company) $5,000 Accounts Receivable (Tomas Company) $5,000, 10%, 90-day note  

17 Notes Receivable (H. Cheng) $2,000 Accounts Receivable (H. Cheng) $2,000 30-day, 9% note

Apr. 16 Accounts Receivable (H. Cheng) $2,015 Notes Receivable (H. Cheng) $2,000 Interest Receivable $15

May 1 Allowance for Doubtful Accounts $2,105 Accounts Receivable (H. Cheng) $2,015)

June 1 Cash $5,125 Notes Receivable (Tomas Company) $5,000 Interest Revenue $125

Interest amounts

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