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
Social media is which of the following?
Natasha_Volkova [10]

Answer:

D. All of the above

Explanation:

7 0
3 years ago
Read 2 more answers
Congratulations! You just won your state lottery and will be receiving a check for $1 million. You have always wanted to own you
Harrizon [31]

The break-even for your food truck business is $37,500.

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Fixed cost is the cost that does not change with the unit of output. It remains constant regardless of the units of output produced.

Fixed cost of the business = $100,000 + $50,000 = $150,000

Variable cost is cost that varies with the units of output produced. Example are wages and cost of raw materials.

Variable cost of the business = $6.

Break-even = $150,000 / ($10 - $6) = 37,500

A similar question was answered here: brainly.com/question/3254072

5 0
2 years ago
Give like the LATEST NEW PLAYLIST "Sad Boy Intro" if you want to heard (Unrelease) playlist and listen to "A love Letter Heart B
Wewaii [24]

Answer:

its in my queue

Explanation:

but are you actually good?

4 0
3 years ago
Read 2 more answers
Dream Homes is an appliance store. It recently launched its own brand of freezers in order to build customer loyalty. The store
Alex787 [66]

The Pricing strategy which Dream Homes implemented is known as Price lining (Option A) which categorized the prices accordingly with the financial soundness of the customers.

Explanation:

The demand for more goods always plays a vital role in ensuring good sales. The likes of the customers towards particular products depend upon the nature of unique features and its fine quality. By capturing the pulse of the purchasing power of the customers, the business ventures fixed the prices according to the level of economical weaker sections, middle, and high-income groups.

In this case, Dream Homes fix the price of freezers by measuring the ability of customers' to buy them without compromising with the customers requirements. Dream Homes uses the price lining method to gain customers' reputation by selling the products accordingly with their status of income level.      

8 0
3 years ago
List 5 factors that ​you ​would be looking for when buying a used car.
julia-pushkina [17]

Answer:

Price, Speed, Gas type, Quality, and Reliability

Explanation:

4 0
3 years ago
Other questions:
  • Privacy:_______.
    14·1 answer
  • After a 3-year probationary period, career positions at Bayside Community College are fairly secure, even though the opportunity
    13·1 answer
  • uring a recession, which of the following is true? A. Consumer staple stocks rise on expectations that consumers will continue t
    12·1 answer
  • Please help<br> For what do governments use tax revenues?
    11·1 answer
  • To change gross income, someone would need to
    15·2 answers
  • Which answer is true?
    6·2 answers
  • A seller buys an item from a manufacturer for $100 and sells it to a customer for $120. What term describes this extra $20?
    11·1 answer
  • According to Levitt, which of the following statements is true? A. Technology drives the world toward a converging commonalty B.
    5·1 answer
  • Ricardo Company has predicted the following costs for this year for 50,000 units: Manufacturing Selling and Administrative Varia
    7·1 answer
  • A project manager has multiple projects. One project has new team members and is in its early stages. Unfortunately, the project
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!