Answer:
The market price of the bond is $913.41
Explanation:
The coupon payment is annual, meaning it is being paid once a year.
N(Number of years/Number of periods) = 5
I/Y(Yield-To-Maturity) = 5 percent
PMT(coupon payment) = $30 [(3/100) x $1,000]
FV(Future value/Par value) =$1,000
PV(present value or market value) = ?
Now to solve this, lets use a financial calculator (e.g Texas BA II plus)
N= 5; I/Y = 5%; PMT = $30; FV = $1,000; CPT PV = -$913.41
Therefore, the market price of the bond is $913.41
Answer:
b. If Mabel is rejected for a loan because of the consumer report, the lender must tell her the source of the report.
Explanation:
The best answer to this question is option b, given that it gives the best description of the situation at hand. If she is turned down for a loan due to the fact that she has been delinquent in paying bills, the the agency from which she seeks this loan has to tell her the source of the report. A credit report gives a summarized statement of a persons financial state. It has such important information like the particulars of the person , address as well as the person SSN,
Answer:
Dr. Cr.
Cash $107,850
Bond Payable $100,000
Premium on Bond Payable $7,850
Explanation:
When the Bond is issued on the price more than its face value, the exptra amount from face value received is called Bond Premium.
Bond Face value = $100,000
Issuance price = $107,850
Premium Paid =$107,850 - $100,000 = $7,850
Answer:
Business-facing processes
Explanation:
As we know that preparation of the financial statements is necessary for all the types of the organization whether small or large, private or public company, etc.
The preparation of the financial statement is done by the accounting and finance department of the organization.
The functions like creating financial statements, paying accounts payable, and collecting accounts receivables are done by business organizations so that no problem will exist in the future.
Such types of business organization are called legal organization who are conducting their business activities in an ethically manner
If you buy the bond for $1,000 (YTM = 6%), then the yield increases to 7%, and you sell the bond immediately after the first coupon payment (in 1 year), hpr after 1-year
bond price = 60/1.07 +1000/1.07
=990.65
HPR = ((990.65-1000)+60)/1000
=5.06%
A credit score card price coupon is a paper slip with charge information, consisting of the due date and the card's assertion balance, that is supposed to be sent along side a check whilst paying a credit card invoice through mail.
The term "coupon" is derived from the historic use of actual coupons for periodic hobby payment collections. as soon as set on the issuance date, a bond's coupon charge remains unchanged and holders of the bond acquire fixed interest bills at a predetermined time or frequency.
The coupon rate, additionally called the nominal charge, nominal yield, or coupon fee is a percent that describes how plenty is paid by means of a set-income safety to the proprietor of that protection for the duration of the period of that bond.
Learn more about coupon rates here:
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