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
WILL MARK BRAINLIEST!
Morgarella [4.7K]

Answer:

Public relations specialists

Explanation:

Public relations specialists refer to individuals who develop and maintain the public image i.e. favorable for the company in which they present. Here the perception of the organization should be shape aslo it would be increase the awareness towards the work and goals

Therefore according to the given situation, the professional that is closely linked with the reputation of the company is public relations specialist

7 0
3 years ago
Goodman Auto started the year with total assets of $300,000 and total liabilities of $175,000. During the year, the business rec
kow [346]

Answer:

The answer is $ 200,000

Explanation:

The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = $ 200,000.

The net income is difference between revenue earned by the company and expenses incurred in order to earn this revenue. In the problem goodman auto revenue is equal to 475,000 and expense are 275,000. So the difference between 475,000 and 275,000 will be reported as net income.

5 0
3 years ago
Smythe industrials has been in business 50 using the same manufacturing model. the company management is considering changing to
8090 [49]
The upside of changing its assembling frameworks is to enhanced item quality and lessened preparing time. 
JIT and the lean maker has numerous bene±ts including enhanced item quality and diminished handling time, and decreased waste and stock, bring down work and generation costs, and expanded assembling adaptability.
8 0
3 years ago
Midyear on july 31st, the baldwin corporation's balance sheet reported: total assets of $166.859 million total common stock of $
Nata [24]
In the balance sheet, in order to account for the money or amounts that go to an fro in the sheet, we use the equation,
              NW = As - Li
where NW is the networth, As is the asset, and Li is liabilities.

From the given above, the total asset (As) is given to be $166.859M. The net worth is equal to the sum of the common stock, cash, and retained earnings.
             Networth = ($5.080 M) + ($8.040 M) + ($36.411 M)
            Networth = $49.531

The the equation above, we may derive the equation for liability by transposing,
                Li = Asset - Networth
                Li = ($166.859 M) - ($49.531 M)
                Li = $117.328

Hence, the total liability is equal to $117.328. 
4 0
3 years ago
Which statement is true?
horrorfan [7]
I think it can be the "D"
4 0
3 years ago
Other questions:
  • Praxis Corp. forecasts the following income statement for the next year:
    15·1 answer
  • É uma estratégia competitiva que busca alcançar retornos máximos dos produtos que estão na fase de declínio do seu ciclo de vida
    7·1 answer
  • Interest versus dividend expense Michaels Corporation expects earnings before in- terest and taxes to be $50,000 for the current
    11·1 answer
  • Which is a major goal of the wto in promoting free trade?
    12·1 answer
  • Which strategy are you using when you only read the title, section headings, and captions? A. guessing from context B. paraphras
    8·2 answers
  • Bed & Bath, a retailing company, has two departments: Hardware and Linens.
    11·1 answer
  • a customer has $12,000 of capital losses and $4,000 of capital gains in a tax year. On that year's tax return, the investor has
    8·1 answer
  • In a market without price controls, producers charge ____ for their goods and services. This price allows producers to supply th
    10·1 answer
  • Can someone please read this and tell me if it sounds good so far, thanks!
    5·1 answer
  • Warranty service, processing of complaints, and costs of litigation are examples of Multiple Choice appraisal costs. internal fa
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!