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
katrin [286]
3 years ago
9

Calculate the value of a bond that matures in 16 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 13

percent and the​ market's required yield to maturity on a​ comparable-risk bond is 12 percent. The value of the bond is ​$ nothing. ​ (Round to the nearest​ cent.)

Business
1 answer:
spayn [35]3 years ago
7 0

Answer:

$1,069.74

Explanation:

We use the present value formula which is shown in the attachment below:

Data provided in the question

Future value = $1,000

Rate of interest = 12%

NPER = 16 years

PMT = $1,000 × 13% = $130

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the value of the bond is $1,069.74

You might be interested in
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics Internation
maria [59]

Answer:

Note: See the attached excel file for the journal entries for recording events 1 to 10.

Explanation:

Also note that since the double-declining-balance depreciation is used for buildings, the depreciation rate for the building is therefore obtained as follows:

Note that double-declining-balance is a depreciation method that depreciates an asset twice the rate of the straight line depreciation method. Therefore, the double-declining-balance depreciation rate used in the excel file is calculated as follows:

Straight line depreciation rate = 1 / Number of estimated life = 1 / 10 = 0.10, or 10%

Double-declining depreciation rate = Straight line depreciation rate * 2 = 10% * 2 = 20%

Download xlsx
8 0
3 years ago
Which of the five competitive forces is influencing a passenger train line, when a new automobile manufacturer causes a reductio
FromTheMoon [43]

Hi thank you for using brainly.com

<span>The answer to this question is “availability of substitutes“. The reduction in the number of people riding trains is due to the fact that a new substitute, automobile, is available in the market.</span> <span>
Hope that helps!</span>
4 0
3 years ago
B&amp;T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; proper
Orlov [11]

Answer:

Factory overhead= $8,500

Explanation:

Giving the following information:

B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200.

Factory overhead= indirect labor + property taxes + factory heat, lights and power + insurance

Factory overhead= 6,500 + 800 + 1,000 + 200= $8,500

6 0
3 years ago
Mineral-rich Zambia is one of the world's most important sources of uranium. It also is a source of copper, tin, diamonds (mainl
Otrada [13]

Answer:

A. Two

Explanation:

The number of cotton products 1  produced is as follows

1. Cottonseed

2. Cotton lint

These two products are produced by cotton and also it contains the name of cotton

Therefore all other products are not considered

hence, the first option is correct

All other information i.e given in the question is not relevant. Hence, ignored it

8 0
3 years ago
Severe folate deficiency in adolescence can result in:
gregori [183]
It can result in many different symptoms including extreme fatigue, mouth sores, gray hair, tongue swelling, and growth problems.
3 0
3 years ago
Other questions:
  • Which of the following is part of the R&amp;D process?
    9·2 answers
  • When Drafting The Bio Section Of A Social Profile, Keep In Mind That Only The First ____________ Will Appear To Customers In Sea
    6·1 answer
  • You find a certain stock that had returns of 17 percent, -24 percent, 25 percent, and 8 percent for four of the last five years.
    8·1 answer
  • List four valuable items that might be kept in an apartment or house. Next to each item, write the estimated dollar amount that
    7·2 answers
  • On January 1, year 1, London Corp. purchases equipment for $400,000. The equipment has a 5-year service life and a $50,000 resid
    8·1 answer
  • Who do you think will make it to the Super Bowl?
    15·1 answer
  • How successful is ABC Company relative to the industry average and leaders in the small specialty retail store industry? Write t
    10·1 answer
  • Waterhouse Company plans to issue bonds with a face value of $503,500 and a coupon rate of 8 percent. The bonds will mature in 1
    11·1 answer
  • Требуется разработать бизнес-план проекта, в котором будут описаны следующие категории:
    7·1 answer
  • What is a business opportunity?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!