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Firdavs [7]
4 years ago
11

Assume that Treasury bonds with a par value of $1,000,000 have 3 years to maturity and a coupon rate of 6%. The yield to maturit

y is 11% and coupon is paid semi-annually. What is the value of the bonds?
Business
1 answer:
dlinn [17]4 years ago
4 0

Answer:

The value of the bonds is $ 877,814.

Explanation:

The value of bond can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

Future Value = Redemption present value (RPV) + Present value of interest       (PVI)

RPV = 1,000,000 (1+11%)^-3 = $ 731,191 -A

PVI = 60,000 * Annuity factor  =  146,623 -B

Future Value = A + B = $ 877,814

Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+11%)^-3)/11% = 2.444

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An organization characterized by direct two-way lines of responsibility and communication running from the top of the organizati
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Answer:

Line

Explanation:

The line organization is the organization structure in which the authority and responsibility are communicated from the top to bottom level of management so that the proper coordination could be done at each level of management i.e top, middle and lower.

Moreover, it is a two ways lines of responsibility i.e to be communicated from high to low level of management. Plus it would be reported to one supervisor only

6 0
4 years ago
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $3,750,000 and 250,000 shares of stock outst
inessss [21]

Answer:

$16

Explanation:

Book Value of Equity = Value of complete equity/no of equity shares

Value of equity share as on 31 Dec 2019 = $3,750,000 + Net income - Dividend

= $3,750,000 + $750,000 - $500,000 = $4,000,000

Net income is a part of common equity, but dividend paid is not part of common equity as dividend paid reduces company's assets as cash or bank balance is reduced.

Provided there is no further issue of common stock and also no common stock is retired. Therefore number of shares = 250,000

Book value per share = $4,000,000/250,000 = $16

$16

5 0
4 years ago
Identify and discuss five areas of modern business and the role ICT play in achieving business success
k0ka [10]

Answer:

The five areas of modern business and the role ICT play in achieving business success is discussed below in complete details.

Explanation:

ICT incorporates all digital technology that supports people, businesses, and establishments in managing messages and information. ICT helps by making a business more productive, efficient, and quickly react to customers' requirements. ICT can serve business ventures including layouts, production, Research and development, shipping and commerce, and feedback.

3 0
3 years ago
Absorption costing income would be ____ variable costing income. a. $150,000 less than b. $150,000 greater than c. $240,000 less
Dafna11 [192]

Answer:

E. None of the above

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True customers come first.

Hope this helped :)
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