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wariber [46]
3 years ago
11

Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer has recently experienced a market reevaluatio

n. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8 percent, with interest being paid semiannually. The required simple rate of return on this debt has now risen to 16 percent. What is the current value of this bond? (Round the answer to the nearest whole number.)​
Business
1 answer:
8_murik_8 [283]3 years ago
6 0

Answer:

Current value = $550

Explanation:

You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)

First, since it is Semiannual coupon, adjust the interest rate to semi-annual rate and multiply  15 years by 2 since we have 2 semi annual periods per year.

<em>Note: If using the same calculator as me, key in the numbers first before the function .</em>

Total duration of investment ;N = 15 * 2 = 30

Interest rate; I/Y = 16% / 2 = 8%

Face value; FV = 1000

Semi annual Coupon Payment ; PMT = (8%/2)*1000 = 40

then CPT PV = $549.689

Therefore the current value of this bond is $550 (rounded to whole number.)

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If the last data point in this chart is the accumulated total (1258), what will you do to set up the chart properly?
KATRIN_1 [288]

Right click the last data point and select "Set as Total"

<h3>What is accumulated total?</h3>

A running total stands for the summation of a sequence of numbers that exists updated each time a new number stands added to the sequence, by adding the value of the new number to the prior running total. Another term for it exists as a partial sum. The objectives of a running total exist twofold. Accumulated value, also directed to as accumulated amount or cash value, exists computed as the sum or total of the initial investment, plus interest earned to date.

A chart exists as a graphical representation for data visualization, in which "the data is described by symbols, such as lines in a bar chart, lines in a line chart, or slices in a pie chart". A chart can illustrate tabular numeric data, functions, or some types of quality structure and provides various info.

Right click the last data point and select "Set as Total".

To learn more about accumulated total refer to:

brainly.com/question/13131255

#SPJ4

5 0
2 years ago
Slinky Company purchased merchandise on June 10, 2021, at a price of $26,000, subject to credit terms of 4/10, n/30. Slinky uses
vampirchik [111]

Answer:

The answer is given below;

Explanation:

June 10.

Inventory    (26,000*.96)                Dr.$24,960

Accounts Payable                                                   Cr.$24,960

2.If payment is made on June 18,2021

Accounts Payable           Dr.$24,960

 Bank                                Cr.$24,960

3. If payment is made on July 8,2021

    Inventory  (26,000-24,960) Dr.$1,040

   Accounts Payable                  Cr.$1,040

    Accounts Payable (1,040+24,960) Dr.$26,000

    Bank                                                 Cr.$26,000

As the credit period of 10 days  for discount was not availed, therefore full amount payment will be made.

4 0
3 years ago
Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art
kap26 [50]

Answer:

Explanation:

The expenses that Ryan can deduct for the business trips he had is calculated by summing up the expenses he had with regards to gasoline and the depreciation.

Cost of gasoline = (3,760 miles)($1,590/18,800 miles) = $318

Cost of depreciation = $4,800

Adding the costs will give us an answer of $5118.

Answer: $5,118

3 0
3 years ago
What is a normal good?​ a. ​ A good whose demand increases when income decreases b. ​ A good whose demand decreases when income
4vir4ik [10]

Answer:

. ​ A good whose demand decreases when income decreases

Explanation:

A normal good is a product whose demand increases as consumers' income increases. The demand may also increase as economic conditions in the country improve. Similarly, when income decrease, the demand also declines.

As people income increase, the purchasing power increase. They prefer more costly goods than give them more satisfaction. Increased income tends to make consumers abandon goods that offer less utility.  Normal goods tend to be associated with customers in high-income.

4 0
3 years ago
which is most likely the reason why policymakers would impose a a price ceiling on the market for coffee?
trasher [3.6K]

The reason for imposing the price ceiling is to prevent the producer/seller from taking advantage of the consumer.

Price ceiling refers to an economic tools used by policymaker to mandate a maximum price that the seller must charge for sales of a product or service.

Price ceiling serves as a tool to prevent the producers from exploiting the consumers.

The price ceiling are imposed by the policymaker to prevent producer or seller of coffee to have price advantage of its sales to the coffee consumers.

Therefore, in conclusion, aim of preventing exploitation of consumer is the reason of imposing price ceiling on coffee market.

Read more about Price Ceiling here

<em>brainly.com/question/24644929</em>

4 0
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