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
const2013 [10]
3 years ago
9

Imagine that a local water company issued $10,000 ten-year bond at an interest rate of 6%. You are thinking about buying this bo

nd one year before the end of the ten years, but interest rates are now 9%.
Given the change in interest rates, would you expect to pay more or less than $10,000 for the bond?
Calculate what you would actually be willing to pay for this bond.
Business
1 answer:
mylen [45]3 years ago
6 0

Answer:

Explanation:

The $10,000 is the face value of the bond. Using a financial calculator, input the following to calculate the price at a year before maturity; i.e. at year 9;

Time to maturity; N = 10 - 9 = 1

Annual interest rate; I/Y = 9%

Annual coupon payment; PMT = 0

Face value of the bond; FV = 10,000

then compute present value ; CPT PV = $9,174.31

Therefore, you will pay less than $10,000 for the bond and the price would be  as above $9,174.31

You might be interested in
Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim
jeka94

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr,                                             $560

            To Deferred revenue                                  $560

(Being cash is received)

2. Deferred revenue                             $336

            To Sales revenue                                         $336

(Being 12 months sales service is recorded)

3. Cost of goods sold                            $280

            To Inventory                                                 $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12)            $28

            To Service revenue                                      $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

3 0
2 years ago
Your company introduced a new product one month ago. Since then, the Website has processed so many orders that the shipping and
blondinia [14]

Answer: The web team can create a FAQ page.

Explanation: FAQ is an abbreviation for Frequently Asked Questions. A FAQ page is a page on an c ecommerce store, where answers to important questions about a company or its products and services have been stored. This is done to clarify the uncertainties of customers and show them how the company or its products and services work.

This will greatly help the company reduce questions directed to sales team, as customers can easily find answer to their questions in the FAQ page

3 0
3 years ago
What kinds of jobs can you get with a high school diploma?
PolarNik [594]
Your options may be limited as most jobs will want more experience than just a diploma but you may be able to find son part time work in restaurants etc
8 0
3 years ago
Read 2 more answers
When firms promote products to their own employees as part of an internal marketing effort, they are using a ______.
Anna007 [38]

Answer: pushing approach

                                 

Explanation: Push marketing refers to a sales technique in which corporations try to bring their products and services to consumers. The word push comes from the belief that advertisers are trying to push buyers towards their goods.

Common marketing tactics involve attempting to sell goods to directly to customers through corporation dealerships and bargaining with vendors to sell their goods to them, or setting up point-of-sale exhibits. To return for this greater visibility, these merchants may sometimes receive extra selling rewards.

Thus, from the above we can conclude that the correct answer is pushing strategy.

6 0
3 years ago
17. What action is the Commission allowed to take if it has cause to believe that a licensee is about to violate escrow account
OleMash [197]

The Commission can sue to enjoin any violation action.

Before money or assets are transferred from one party to another in a transaction, a neutral third party is said to be keeping them. This third party is referred to as escrow. Until both the buyer and the seller have complied with the terms of the contract, the third party keeps the money.

Escrow is a legal term that refers to a financial arrangement in which a third party holds an asset or money on behalf of two other parties who are carrying out a transaction. The escrow agent is in charge of escrow accounts. Only after certain contractual duties have been fulfilled does the agent release the assets or funds. Escrow can be used to hold several types of assets, including cash and securities.

To know more about escrow refer to:

brainly.com/question/15703254

#SPJ1

3 0
1 year ago
Other questions:
  • One of the most widely followed stock indexes in the united states is the dow jones industrial average. this index represents
    11·1 answer
  • "Today's settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/¥100. Your margin account curre
    12·1 answer
  • The _____ quality attributes are embedded in the total product, that is, the physical or core product and all the additional fea
    10·1 answer
  • Jan. 1 Purchased 5,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $2 per share cash dividend pay
    15·1 answer
  • Which of the following is notpart of the task of identifying the strategic issues and problems that merit front-burner manageria
    8·1 answer
  • Adrian placed an X-Box on layaway as a Christmas gift. The price of the X-Box was $400.00. The store charges a 5% layaway fee an
    15·1 answer
  • When using the​ _______ always be careful to avoid​ double-counting outcomes?
    15·1 answer
  • Darius, Inc. has the following income statement (in millions): DARIUS, INC. Income Statement For the Year Ended December 31, 201
    13·1 answer
  • Property rights are important to a free enterprise system because they
    15·2 answers
  • When a company exports a product from the us to another country, the company is most likely?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!