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Galina-37 [17]
3 years ago
6

The 8.5 percent bond of Fitness Center, Inc has a face value of $1,000, a maturity of 25 years, semiannual interest payments, an

d a yield to maturity of 12.58 percent. What is the current market price of the bond
Business
1 answer:
Aleonysh [2.5K]3 years ago
3 0

Answer:

Price of bond=$691.034

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

Let us assume the bond had a per value of 1000 and also redeemable at par

The value of the bond  can be worked out as follows:

Step 1  

<em>Calculate the PV of interest payments</em>

semi Annual interest payment

= 8.5% × 1000 × 1/2=    42.5

PV of interest payment

= 42.5  × (1-(1.0629)^(-25×)/0.0629)

=643.6780

Step 2

PV of redemption Value

PV = 1000 × (1-(1.0629)^(-25×2)  = 47.35

Step 3

Price of bond

=643.678 + 47.356

=$691.034

Price of bond=$691.034

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Answer:

Centralized production processing facility considers top management as the apex of decision making.

In decentralized production processing the decision making is delegated to teams and multiple individuals.

Explanation:

Centralized facility:

Pros:

a. In centralized facility top management commitment helps in improved decision making

b. Allocation of budgets to improve production processes.

c. The process becomes a part of strategic planning.

d. Standardization of processes like Mcdonalds kitchen.

e. Lower costs

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Cons:

a. Lack of flexibility

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Decentralized Facility:

Pros:

a. Flexibility

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Cons:

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b. Every Team has its own benchmarking process to evaluate performance.

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3 0
3 years ago
What refers to a thorough analysis of the circulation procedures, outlets of distribution, readers, and other factors by compani
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Answer:

circulation audit

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solong [7]

The most popular input measure used to determine progress towards completion is the cost-to-cost basis.

Unavoidable expenses or sacrifices to obtain goods or services with the aim of obtaining benefits; expenses for certain activities, purposes, or time, such as shipping, packing, and sales are intended to generate income in the company's income statement, the cost component is a deduction from revenue.

Costs are sacrifices or expenses made by a company or individual with the aim of obtaining more benefits from the activities carried out. In terms of costs, sometimes it is quite inconvenient to distinguish between costs and expenses. In terms of costs, sometimes it is quite inconvenient to distinguish between costs and expenses.

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3 0
1 year ago
If a plant has the phenotype of the dominant trait of having thorns, then the plant has either the genotype Tt or tt. Question 8
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The genotype of an organism is the set of genes it possesses. All of an organism's observable traits make up its phenotype.

The statement given is False, the genotype is TT.

<h3>What is a plant's phenotype based on its genotype?</h3>

The genotype of an organism is the particular combination of alleles for a given gene.

As an example, the flower-color gene genotypes for the pea plants above were red-white, white-white, and red-red.

The physical manifestation of an organism's allelic combination is called phenotype (genotype).

Because T is dominant while T is recessive, if a plant has the phenotype of the dominant trait of having thorns, it will have TT.

As a result, the answer is false. TT should be the genotype.

For more information about the plant types, refer below

brainly.com/question/20730322

6 0
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