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rewona [7]
3 years ago
14

ames Corporation is planning to issue bonds with a face value of $501,500 and a coupon rate of 6 percent. The bonds mature in 10

years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases:
Business
1 answer:
Yuliya22 [10]3 years ago
8 0

Answer:

The independent cases not given in the question are:

a. Case A: Market interest rate (annual): 4 percent.  

b. Case B: Market interest rate (annual): 6 percent.  

c. Case C: Market interest rate (annual): 8.5 percent.

At 4% issue price is  $583,502.44

At 6% issue price is $501,500.00

At 8% issue price is $433,344.51

Explanation:

The price of the bond can be computed using the pv value formula in excel.

=pv(rate,nper,pmt,fv)

rate is the market interest given in the three cases divided by since the bond is a semi-annual interest paying bond. for example 4%/2=2%

nper is the time to maturity multiplied by 2  i.e 10*2=20

pmt is the coupon  interest receivable by investor semi-annually which is 6%/2*$501,500=$15045

fv is the face value at $501,500

at 4%

=pv(2%,20,15045,501500)

=$583,502.44

at 6%

=pv(3%,20,15045,501500)

=$501,500.00

At 8%

=pv(4%,20,15045,501500)

=$433,344.51

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The theory of comparative advantage shows that the gains from international trade do not just result from the absolute advantage
Tema [17]

Answer:

Opportunity cost

Explanation:

The theory of comparative advantage represent that if there is any benefit from the international trade so it does not only show the absolute advantage at lesser cost but it also represent the comparative advantage and generating at a  lesser opportunity cost as the theory of comparative advantage says that the product and services should be produced at lower opportunity cost

6 0
2 years ago
Fuschia company's contribution margin per unit is $12. total fixed costs are $84,000. what is fuschia's break-even point in unit
Alla [95]
<span>The breakeven point in units for Fuschia is 7000 units. You find this figure by taking the total fixed costs (84,000) and dividing it by the contribution margin (12). This gets you to the breakeven point that the company can expect.</span>
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3 years ago
In a perfectly competitive market, Multiple Choice all firms produce and sell a standardized or undifferentiated product. the ou
Umnica [9.8K]

Answer:

all firms produce and sell a standardized or undifferentiated product

Explanation:

A perfectly competitive market is a market in which there are many companies that offer the same product, there are not entry barriers which makes it easy for an organization to enter or exit the market. Also, the companies are not able to influence the market and they are not able to control the conditions in it. According to this, the answer is that in a perfectly competitive market, all firms produce and sell a standardized or undifferentiated product.

6 0
3 years ago
Question(2 points) Consider the following balance sheet for the Wahoo Bank. Use it to answer the two questions that follow. Use
lidiya [134]

Answer:

C. Required reserves decrease by $20.

D. Outstanding liabilities decrease by $200.

A. Required reserves increase by $65.00.

D. Outstanding liabilities increase by $650.

Explanation:

<u>PART I:</u><u> The withdrawal from the checking accounts:</u>

makes the required reserves to decrease as there is less cash deposists.

Also, the bank no longer has the obligation to give this 200 dollars to Shantee thus, otstanding liabilities decrease by 200 as well:

checking deposits 200 debit

               cash                            200 credit

<u>PART II:</u><u> Deposit in a checking account</u>

This is the opposite. The bank reserve must increase by 10% of the deposit

650 x 10% = 65

And the outstanding liaiblities increase by the full amount as later the bank will give back 650 dollars to Dalon in the future.

3 0
3 years ago
Why is the price elasticity of demand for coca-cola greater than the price elasaticity of deman for soft drinks generally?
wolverine [178]

A soft drink's price elasticity of demand is lower than Coca-Cola's, which is more sensitive to price. This is due to the ease with which consumers can switch from Coca-Cola to other comparable soft drink alternatives, such as Pepsi.

  • However, it would be challenging to replace soft drinks as a whole with alternative products. The price elasticity of demand for soft drinks, in general, is lower than the price elasticity of demand for Coca-Cola because there are no other close substitutes for them.
  • The quantity required of a thing or service changes in response to a change in the product's price, and this is measured by the price elasticity of demand. It is computed by subtracting the product's price change from the quantity demanded, divided by the product's price change.
  • Because the quantity of Coca-Cola products demanded frequently changes when prices vary, these products are thought to have an elastic demand.

Know more about coca-cola:

brainly.com/question/14602871

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7 0
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