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mel-nik [20]
3 years ago
15

Two years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 7.25 percent. Today, comparable bo

nds are paying 7.00 percent. What is the approximate dollar price for which you could sell your bond?
Business
1 answer:
kirza4 [7]3 years ago
7 0

Answer:

$1,035.71

Explanation:

first we must determine the annual interest = face value x coupon rate = $1,000 x 7.25% = $72.50

now to determine the approximate market value = annual interest / market interest rate = $72.50 / 7% = $1,035.71

since the market rate is lower than the coupon rate, you can sell your bond at a premium

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Answer:

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2. Does Gidgits Galore have to implement a payroll tax for unemployment, workers' compensation, or Social Security? Yes

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4. Does the Commerce Clause have an effect on Gidgits Galore? Yes

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Explanation:

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Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first qu
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Answer:

Option (a) is correct.

Explanation:

For February,

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Hence,

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3 years ago
When a nation removes a tariff on a product, this policy action rev: 06_20_2018 Multiple Choice benefits domestic producers of t
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benefits consumers of the product.

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