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Lyrx [107]
2 years ago
10

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

l coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 3.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Business
1 answer:
krok68 [10]2 years ago
8 0

Answer:

Bond Price = 875.0948 euro rounded off to 875.09 euro

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.038 = 38 euro

Total periods (n)= 23

r or YTM = 0.047 or 4.7%

The formula to calculate the price of the bonds today is attached.

Bond Price = 38 * [( 1 - (1+0.047)^-23) / 0.047]  +  1000 / (1+0.047)^23

Bond Price = 875.0948 euro rounded off to 875.09 euro

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a sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?
Elza [17]

Complete Question:

A sole proprietor with a tentative loss may deduct which of the following for qualified business use of home expenses?

a. depreciation

b. mortgage interest

c. rent

d. Utilities

Answer:

b. mortgage interest

Explanation:

The sole proprietor with a tentative loss may deduct expenses for mortgage interest, mortgage insurance premiums, and real estate taxes under the normal rules.   The sole proprietor is not allowed to deduct other expenses that are normally tax-exempt expenses, including depreciation, rent, and utilities.  The amount to be deducted for mortgage interest should not exceed the percentage for business use.

3 0
3 years ago
With brick-and-mortar toy stores closing, board game manufacturers expect to have trouble finding as many consumers interested i
Oxana [17]

Answer:

This is how the market for board games would be affected in the explanation below

Explanation:

Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.

3 0
2 years ago
Brendon Inc. required a permit to open its business in a foreign country. Although it had met all the requirements for the permi
ipn [44]

Yo crato ke its hes la letra C

Explanation:

5 0
2 years ago
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
marta [7]

Answer:

Evans Company

General Journal

Part a.

Debit : Cash $645

Debit : Cost of goods sold $375

Credit : Sales Revenue $645

Credit : Merchandise $375

Part b.

Debit : Cash $432

Debit : Cost of goods sold $195

Credit : Sales Revenue $432

Credit : Merchandise $195

Part c.

Debit : Accounts Receivable $670

Debit : Cost of goods sold $438

Credit : Sales Revenue $670

Credit : Merchandise $438

Part d.

Debit : Credit Card fees $85

Credit : Cash $85

Explanation:

The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.

4 0
3 years ago
6. Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may re
anygoal [31]

Answer:

generic goods.

Explanation:

Generic goods -

It refers to the type of packaging , where only the type of product present inside the packet is written , rather than specifying the name of the brand , is referred to as generic goods .

For example ,

Mentioning the package with rice , cola , beans etc. , is the example of generic food .

Hence , from the given scenario of the question ,

The correct answer is generic goods .

4 0
3 years ago
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