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levacccp [35]
3 years ago
13

21. Perry Inc.'s bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $85, and a par value of $1,00

0. What is their current yield
Business
1 answer:
Lera25 [3.4K]3 years ago
8 0

Answer:

7.39%

Explanation:

The Current Yield = Annual Coupon / Current Price *100

= $85 / $1150 * 100

= 7.391304348%

= 7.39%

Hence, the correct answer is 7.39%

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Apricot Corporation has decided to buy a new glazing machine for its factory. The machine's cost is $50,000 and the expected inc
Kisachek [45]

Answer:

$12,841.03

Explanation:

Given:

Initial Investment = $50,000

1st year expected income = $19,000

2nd year expected income = $25,000

3rd year expected income = $30,000

Expected rate of return = 8% = 8/100 = 0.08

Net present value = ?

Computation of net present value:

Net present value = C0 + \frac{C1}{(1+r)^1}+ \frac{C2}{(1+r)^2}+ \frac{C3}{(1+r)^3}

50,000 + \frac{19,000}{(1+0.08)^1}+ \frac{25,000}{(1+0.08)^2}+ \frac{30,000}{(1+0.08)^3}\\\\50,000 + \frac{19,000}{(1.08)^1}+ \frac{25,000}{(1.08)^2}+ \frac{30,000}{(1.08)^3}\\\\50,000 + \frac{19,000}{(1.08)}+ \frac{25,000}{(1.1664)}+ \frac{30,000}{(1.259712)}\\\\50,000 + 17,592.5926+ 21,433.4705+ 23,814.9672\\\\112,841.03\\\\

Net present value = $112,841.03

5 0
3 years ago
2. In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual
deff fn [24]

Answer:

5.5%

Explanation:

This is an Annuity Due question. In an annuity due, recurring payments occur at the beginning of the yearIt is asking for the RATE. Using a financial calculator(on BEG mode), input the following;

Duration; N = 25

Recurring payment; PMT = 23.6

Present value ; PV = -334

One-time future cashflow; FV = 0

Then compute the interest rate; CPT I/Y = 5.499%

Therefore, the lottery commission is using about 5.5% interest rate.

3 0
3 years ago
Ethical decisions often need to be made within gray areas. for example, should an isp comply with a request from a government fo
IRINA_888 [86]

It is conducted by the Electronic Communications Privacy Act (ECPA) and the Patriot Act, but the ECPA originally set up protections (such as a warrant requirement) to protect email, those protections have been weakened in many instances by the Patriot Act. It reduce their status as a protected communication in 180 days, then the email can be access by simple subpoena. 

8 0
2 years ago
Laws designed to promote competition and prevent the formation of monopolies are known as _______ laws
juin [17]
<span>Laws designed to promote competition and prevent the formation of monopolies are known as _antitrust_ laws.
</span>
I hope this helped! : )
Please Rate & Thank!
Please mark as Brainliest!

Have a wonderful day! : )
6 0
3 years ago
In terms of innovation streams, what ____ occurred when customers purchased flat-screen computer monitors to replace the older,
Novay_Z [31]

Answer:

Technological substitution.

Explanation:

Technological substitution is basically the substitute to another option product of technology.

4 0
3 years ago
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