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makkiz [27]
3 years ago
11

A firm offers a 10-year, zero coupon bond with a face value of $1,000. What is the current market price if the yield to maturity

is 7.6 percent, given semiannual compounding
Business
1 answer:
viva [34]3 years ago
7 0

Answer:

Current market price is  474.30  

Explanation:

The current price of the bond can be computed using the pv function in  excel as stated thus:

=-pv(rate,nper,pmt,fv)

rate is semiannual yield to maturity which is 7.6%/2

nper is the 10 years of bond tenure multiplied by 2

pmt is the coupon payable which is zero

fv is the face value of the bond which is $1000

=-pv(7.6%/2,20,0,1000)=$ 474.30  

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The static budget, at the beginning of the month, for Beacon Banner Company follows:
olasank [31]

Answer:

D. $3885 U

Explanation:

7 0
3 years ago
Discrimination lawsuits that go to court are very expensive, averaging over $200,000, so a well-crafted ________ can save an emp
frozen [14]

Answer:

Job description.

Explanation:

A job description is an internal document that a firm draws up to describe the responsiblities of a position, the required skill, and job requirements to perform a particular job role.

When a job description is well crafted it shows clearly what is required to hire a person for a job. This will reduce discrimination lawsuits because it will show clearly why a particular candidate was disqualified from the hiring process.

For example if a candidate was disqualified for not having a bachelor's degree, it should be well stated in the job description to avoid discrimination claims.

3 0
3 years ago
Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the
Lemur [1.5K]

Answer:

Ke = Rf  + β(Rm – Rf)

Ke = 4.5 + 1.20(12-4.5)

Ke = 4.5 + 9

Ke = 13.5%

Explanation:

Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.

8 0
3 years ago
Ryan Lock had planned his trip to the Olympic Games in Rio de​ Janeiro, Brazil, for many months. He had ​budgeted-saved-$15 comm
WITCHER [35]

Answer:

He should have exchanged the dollars for real in January 2016 to maximize his Brazilian spending​. The exchange rate in January will result to highest Real (BRL) of R$<em>59,463.00</em>

Explanation:

To arrive at R$ equivalent of $15,000 on monthly basis, since  BRL=1.00 USD, multiply R$ exchange rate each month by $15,000.

For January,  3.9642*15,000= R$59,463.00

     February  3.8402*15,000= $57,603.00, etc.

Solution  

S/N Month      BRL=1.00 USD          BRL Equivalent(R$)

1 January              3.9642              59,463.00

2 February            3.8402               57,603.00

3 March                 3.6086               54,129.00

4 April                    3.6851                55,276.50

5 May                     3.5843               53,764.50

6 June                    3.5493               53,239.50

7 July                      3.2331               48,496.50

8 Aug-08                3.2312               48,468.00

8 0
3 years ago
At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $10,100 and liabilities of $6,900. Du
Viefleur [7K]

Answer:

Dividends = 6,000

Explanation:

Ending liabilities = Beginning liabilities - Decrease in liabilities

                           = $6,900 - $1,200

                           = $5,700

Ending net assets = Ending total assets - Ending total liability

 $3,900                = Ending total assets - $5,700

Ending total assets = $3,900 + $5,700

                                = $9,600

Ending RE =  Ending total assets - Ending liabilities

                 = $9,600 - $5,700

                 = $3,900

Dividend = Beginning RE + Net income - Ending RE

               = $6,900 + $3,000 - $3,900

               = $6,000

3 0
3 years ago
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