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murzikaleks [220]
4 years ago
5

A zero coupon bond pays no annual coupon interest payments. When it matures at the end of 7.5 years it pays out $1,000. If inves

tors wish to earn 2.35% per year on this bond investment, what is the current price of the bond? (Round to the nearest dollar.)
Business
1 answer:
Darya [45]4 years ago
6 0

Answer:

The current price of the bond is $840.12

Explanation:

The current price of this bond is the present value which have future value $1,000.

The discounting rate 2.35%;

The investment tenor is 7.5 years.

PV = FV/(1+discounting rate)^tenor =

1000/((1+3.35%)^7.5))= $840.12

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Because of the perceived downward sloping nature of a monopolist’s demand curve, the monopolist will charge a relatively low pri
Citrus2011 [14]

Because of the perceived downward sloping nature of a monopolist’s demand curve, the monopolist will charge a relatively low price at a<u> high level of output.</u>

<h3>What is demand curve?</h3>

Demand curve can be defined as a curve that help to show the relationship between the quantity of a product that is demanded and the price of the product at a specific period of time.

Hence, , the monopolist will charge a relatively low price at a high level of output based on the fact that in a situation where monopolist increases its output, he will tend to get a price.

Learn more about demand curve here:brainly.com/question/17166820

brainly.com/question/516635

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4 0
2 years ago
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and
Snezhnost [94]

Answer:

depreciable amor 10.95 dollars per Activity 2 base cost object.

Explanation:

\frac{Activity\: Pool}{Activity \: base}= Activity\:Rate

totoal expected cst: 35,040

activity 2 expected cost dirver Total  3,200

Activity rate: $35,040 cost pool / 3,200 driver expected amount = $10.95

7 0
3 years ago
Christy spent $500 over her budget on gifts during the holidays. in addition to her regular job, she took a part-time job at the
allsm [11]
5 weeks 500/(12x10) =4ish then round up
8 0
3 years ago
What is the basic equation of an income statement? Select one: a. Assets = Revenues – Expenses b. Net income or loss = Revenues
Mashutka [201]

Answer:

c. Assets = Liabilities + Equity

Explanation:

Assets = Liabilities + shareholders equity is also known as the balance sheet equation.

It is the basis for the double-entry bookkeeping system

7 0
3 years ago
One year ago, ABC Widgets, Inc., funded an expansion to its manufacturing facilities by issuing a 20-year first mortgage bond. T
MA_775_DIABLO [31]

Answer:

Current yield = 0.05238 or 5.238% rounded off to 5.24%

option B is the correct answer

Explanation:

The current yield is the return on investment in form of interest or dividend expressed as a percentage of the current market value of the instrument. Thus the formula for current yield on a bond will be,

Current yield = Interest per year / Current market price

Assuming that the value of bond is 100. The interest or coupon payment on bond will be = 100 * 5.5% = $5.5 per annum

Current yield = 5.5 / 105 = 0.05238 or 5.238% rounded off to 5.24%

5 0
3 years ago
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