1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
postnew [5]
3 years ago
12

A $7,500 face value, 20-year bond has a nominal annual coupon rate of 7.4%, paid semiannually. The yield to maturity is 5.3% con

vertible semiannually. In the 4th coupon payment, the amount for amortization of premium is $28.31. Find the redemption amount of the bond.
Business
1 answer:
Stolb23 [73]3 years ago
3 0

Answer:

$134,000

Explanation:

Annual yield (%) = Face value - Purchase value/Face value X 360 X 100%/Maturiy(in days)

Let x be purchase value

2 X 5.3% = $7,500 - x/$7,500 X 360 X 100%/365

100($7,500 - x) = 10.6 X $7,500

$750,000 - 100x = $79,500

100x = $(750,000 - 79,500) = $670,500

x = $6,750

The value of bond for 20-year: 20 X $6,750 = $134,000

You might be interested in
According to the most recent data available, there are approximately ____ noncustodial mothers in the united states.
kodGreya [7K]
<span>According to the most recent data available, there are approximately two million noncustodial mothers in the united states.
</span>

<span>A custodial parent is the term for a parent who has lawful and physical guardianship of their kid. There are around 13.7 million single guardians in the United States. Of these single parents, 84% of custodial guardians are moms and 16% are fathers. A non-custodial parent does not have legitimate or physical guardianship of their kids, which is typically chosen by a court. Half of non-custodial moms are thoroughly default on help, which implies they struggle or can't pay for the help their families need.</span>

3 0
4 years ago
A deductible of $500 requires ( select the correct answer )
kenny6666 [7]

Answer:

ɴᴏ ᴘɪᴄ sᴏʀʀʏ :(( ʙʏᴇ :)))

5 0
2 years ago
Read 2 more answers
When originally purchased, a vehicle costing $23,040 had an estimated useful life of 8 years and an estimated salvage value of $
Novosadov [1.4K]

Answer:

$5,360

(not given in the options)

Explanation:

Depreciation is the systematic allocation of cost to an asset based on estimates. It is given as

Depreciation = (cost - salvage value)/useful life

When originally purchased, a vehicle costing $23,040 had an estimated useful life of 8 years and an estimated salvage value of $1,600

Annual depreciation = ($23,040 - $1,600)/8

= $2,680

After 4 years

Accumulated depreciation = 4 × $2,680

= $10,720

The net book value then

= $23,040 - $10,720

= $12,320  

Since the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value

New depreciation = ($12,320  - $1,600)/2

= $5,360

The depreciation expense in year 5 equals $5,360

8 0
3 years ago
Management at WorkNewspapers are under tremendous pressure to stay relevant as people increasingly turn to the Internet for news
kap26 [50]

Answer:

B. Subscribers cancelling their subscriptions

Explanation:

Central Times’s business environment had suffered tremendousy in recent times with transition from newspaper publication to online journalism. As a result of this, Time's publishing company has faced many problems some of which are highlighted below: many of the newspaper subscribers have cancelled their subscription, they were losing revenue, they had to relief a third of their reporting staff primarily. However, amidst all these, <u>the primary cause of disruption to Central Times’s business environment is option B</u> (Subscribers cancelling their subscriptions). It was this problem that led to the other problems (loss of revenue, firing a third of their reporting staffs)

7 0
3 years ago
Why are workers really quitting? you can boil it down to 1 simple reason
Stella [2.4K]

Answer:

the money bro

Explanation:

4 0
2 years ago
Other questions:
  • (a) At a product price of $67.00 (b) At a product price of $42.00 (c) At a product price of $33.00 Will this firm produce in the
    14·1 answer
  • Casio, a giant electronic products producer, synthesizes it abilities in miniaturization, microprocessor design, material scienc
    12·1 answer
  • Alternative price indexes
    12·1 answer
  • Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its fact
    15·1 answer
  • The resources owned by firms that shut down in the process of creative destruction:
    6·1 answer
  • What’s the difference between a commercial bank and an investment bank? List the major types of financial institutions, and brie
    9·1 answer
  • What occupational group falls under the service occupation cluster
    7·1 answer
  • What is the function of the ppi
    15·1 answer
  • Discriminatory practices that are deeply embedded in institutions such as education, health care, business, and criminal justice
    15·1 answer
  • A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!