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
lesya [120]
3 years ago
10

Today you purchase a $600 face-value, 8% coupon bond for $600. This bond matures over 10 years. What is the value of the cash fl

ow in year 5?
Business
1 answer:
Nadya [2.5K]3 years ago
8 0

Answer:

the value of the cash flow in year 5 is -$48

Explanation:

Cash flow in year 5 include a capital repayment and interest expense.This can be determined by constructing an amortization schedule from the data given.

The first step in constructing the amortization schedule is to find the Yield to Maturity.

Pv = -$600

Pmt = $600 × 8% = $48

P/yr = 1

N = 10

Fv = $600

YTM = ?

Using a Financial Calculator the Yield to Maturity is 8%.

then to determine the cash flow for year 5, we need the coupon amount (interest) and the amount of capital repayment.

Coupon  $48

Capital     $0

Total       $48

Therefore the cash flow in year 5 is -$48.

You might be interested in
Donovan and Keith both work as line employees at the Widget Corporation plant. They are both big fans of the San Francisco Forty
Bezzdna [24]

Answer:

Social companionship

Explanation:

Social companionship is a type of friendship or relationship between individuals who share similar likes and benefit from each other as they feel a sense of closeness doing things they like together. Donovan and Keith, who share some similarities and likes between each other, provide social companionship to each other as they hang out together as fans of a club.

6 0
3 years ago
Characteristics of just-in-time partnerships do NOT include: long-term contracts. removal of in-transit inventory. large lot siz
otez555 [7]

Answer: large lot sizes to save on setup costs and to gain quantity discounts.

Explanation:

Just in time is the kind of system where your material or component arrives just when you require them and does not take up time. This is helpful in saving storage cost. Just in time however, does not include large lot sizes to save on setup costs and to gain quantity discounts.

8 0
3 years ago
If you’re thinking about a career as an applied mathematician, you should consider researching the_cluster. Within this cluster,
Alexxandr [17]

Within this cluster, you'll find that most of the careers require in order to have the knowledge and skills nee. If you're thinking about a career as an applied mathematician, you should consider researching the (STEM, Information Technology, or ArtsA/V Technology and preforming arts) cluster.

8 0
3 years ago
Read 2 more answers
One of the biggest problems associated with renting a home is:
olga_2 [115]

Answer:

The money invested does not build wealth

Explanation:

7 0
3 years ago
Read 2 more answers
ou are comparing two mutually exclusive projects. The crossover point is 12.3 percent. You have determined that you should accep
Verdich [7]

Answer:

the options are missing:

  1. Always accept Project A.
  2. Accept Project B if the required return is less than 13.1 percent.
  3. Be indifferent to the projects at any discount rate above 13.1 percent.
  4. Accept Project B only when the required return is equal to the crossover rate.
  5. Always accept Project A if the required return exceeds the crossover rate.

the answer is:

5. Always accept Project A if the required return exceeds the crossover rate.

The crossover point tells us that one project must be chosen if the IRR is higher than the cross over point, but if the IRR is lower, then the other alternative should be selected.

In this case, the cross over point is 12.3% and we are told that project A should be selected if the required IRR is 13.1%. That tells us that the alternative that we must choose above 12.3% is project A. Project B should be selected if the IRR is less than 12.3%.

3 0
3 years ago
Other questions:
  • What is the relationship between a good's price and the amount that people are willing to buy?
    12·1 answer
  • Using the aging method of accounts receivable method, $5,000 of the company's Accounts Receivable are estimated to be uncollecti
    10·2 answers
  • In 2006, 61.2 million adults volunteered throughout the United States for a total of
    6·2 answers
  • Please Help!!!
    8·1 answer
  • You purchased a share of stock for $29. One year later you received $2.40 as dividend and sold the share for $28. Your holding-p
    7·2 answers
  • VelSad is contemplating the acquisition of Po, Inc. The values of the two companies as separate entities are $32 million and $16
    6·1 answer
  • EcoFabrics has budgeted overhead costs of $1,077,300. It has allocated overhead on a plantwide basis to its two products (wool a
    8·1 answer
  • Gerald's had opening total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabi
    13·1 answer
  • In a research proposal, which section comes first?
    9·2 answers
  • A revenue account is increased by debits. is decreased by credits. has a normal balance of a debit. is increased by credits.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!