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]
4 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]4 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
At work, Clarissa often takes on the extra duties of ordering all the food and drinks for any celebrations of work anniversaries
tangare [24]

Answer:

The correct answer is B) motherhood.

Explanation:

In the United States, the ILO, through the 1919 maternity agreement, establishes the protection of pregnant and postpartum workers, including the right to a minimum 12-week leave.

The policies and practices of motherhood in a company must be applied in the same conditions or in a similar way to people who have some type of limitation or temporary incapacity for work.

7 0
3 years ago
Inventory costing methods place primary reliance on assumptions about the flow of.
Elanso [62]

Inventory costing methods place primary reliance on assumptions about the flow of goods

4 0
3 years ago
Furniture sold to nikesh and receive cheque journal entries<br>​
Savatey [412]

Answer:

Nikesh's account debit

To sales account

4 0
3 years ago
On January 1, 20X1, Meister Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semiannually on June 30 and Decem
hoa [83]

Answer:

                                                                   Debit                   Credit

Bank/Cash                                                  $200,000

Bonds payable                                                                        $200,000

Explanation:

The journal entry which shall be recorded by Meister Company in its accounts in respect of bonds issued by it, on January 1, 20X1, is mentioned below:

                                                                   Debit                   Credit

Bank/Cash                                                  $200,000

Bonds payable                                                                        $200,000

6 0
3 years ago
The DBA function provides data modeling and design services to the end-user community, often through coordination with an applic
mrs_skeptik [129]

Answer:

The correct answer is True.

Explanation:

The DBA, unlike the data manager, is a data processing professional. The task of the DBA is to create the database itself and enforce the necessary technical controls to support the policies dictated by the data administrator. The DBA is also responsible for ensuring the proper functioning of the system and providing other related technical services. The DBA usually has a group of system programmers and other technical assistants.

The general responsibility of the DBA is to facilitate the development and use of the Database within the action guidelines defined by data management.

The DBA is primarily responsible for:

  • Manage the structure of the Database
  • Manage data activity
  • Manage the Database Management System
  • Set the Data Dictionary
  • Ensure the reliability of the Database
  • Confirm Database Security
8 0
4 years ago
Other questions:
  • If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to carry out a major
    12·1 answer
  • Pechstein Corporation issued 2,090 shares of $13 par value common stock upon conversion of 1,070 shares of $45 par value preferr
    12·1 answer
  • In a spreadsheet, what is the rectangular space where a row meets a column? A. A formula B. A function C. A calculation D. A cel
    13·2 answers
  • A taxpayer will be able to exclude all the income from their canceled debt if they:
    13·1 answer
  • The Ethics Review Board at XYZ College is composed of students who were elected by the student body. When a student is charged w
    8·1 answer
  • A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment is called___
    15·1 answer
  • Musk describes his early days in his first startup, Zip2, as very tight with cash. For example, he and the two other founders be
    9·1 answer
  • holi, me podrían ayudar diciéndome unos ejemplos de un catalogo de cuantas plis?? estuve buscando pero no encuentro ninguno :((
    11·1 answer
  • Rachel is going to the mall to purchase a wedding gift for a coworker. Based on research, which type of product is she likely to
    10·1 answer
  • Robert Company purchased $100,000 of 8 percent bonds of Evergreen Corp. on January 1, 20x1, at $92,278. The bonds mature January
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!