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masha68 [24]
3 years ago
11

In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (a

nd source of cash flow for interest and principal payments) consisted of future royalties from classic songs such as "What's Going On," and "I Heard It Though The Grapevine." The bond issue had a $1,000 face value and a coupon rate of 5%. If the bond matures in 26 years, pays semiannual coupons, and the yield to maturity is 6%, what will the bond sell for
Business
1 answer:
nata0808 [166]3 years ago
6 0

Answer:

The bond will sell for the amount of $869.17

Explanation:

According to the given data coupon amount = 50/2 = 25

Therefore, in order to calculate the selling price of the bond we would have to make the following calculation:

selling price of the bond = 25 * PVIFA(3%,52) + 1,000 * PVIF(3%,52)

selling price of the bond= 25 * 26.1662 + 1,000 * 0.2150

 selling price of the bond= $869.17

The bond will sell for the amount of $869.17

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One of the principles of hierarchy is a clear ______ chain of command.
Genrish500 [490]

Answer: One of the principles of hierarchy is a clear <u>vertical </u>chain of command.

Hope this helps!

4 0
2 years ago
What is an example of an interest leading to a career choice
kramer

Answer:

Making music leading to becoming a musician, basketball leading to wanting to be in the nba, etc.

Explanation:

8 0
3 years ago
Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has
Anni [7]

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

       To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine +  Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

5 0
3 years ago
A beach house in Southern California now costs $350,000. Inflation is expected to cause this price to increase at 5 percent per
jekas [21]

Answer:

Annual deposit= $7,648.27

Explanation:

Giving the following information:

A beach house in Southern California now costs $350,000.

Inflation rate= 5% per year

Interest rate= 13% annual

Number of years= 20

We need to find an annual payment to be made at the end of each year to reach the $350,000 goal.

We need to use the following formula of the future value:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

Real interest rate= 0.13 - 0.05= 008

A= (350,000*0.08) / [(1.08^20) - 1]= $7,648.27

4 0
3 years ago
You need to have $20,000 for a down payment on a house 4 in years. If you can earn an annual interest rate of 3.8 percent, how m
stiks02 [169]

Answer:

PV= $17,228.23

Explanation:

Giving the following information:

FV= $20,000.

The number of years= 4.

interest rate= 3.8%.

To calculate the initial investment required to reach the objective, we need to use the following formula:

PV= FV/(1+i)^n

PV= 20,000/(1.038^4)

PV= $17,228.23

6 0
3 years ago
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