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Yuki888 [10]
3 years ago
10

A semiannual coupon bond with face value of $1,000 has a coupon rate of 6% and matures in 16 years. The market-determined discou

nt rate on this bond is 14%. What is the price of the bond?
Business
1 answer:
olya-2409 [2.1K]3 years ago
7 0

Answer:

$1,125.30

Explanation:

The Price of the Bond is its Current/Trading price also known as the Present Value (PV). This is determined as follows :

Fv = $1,000

Pmt = $1,000 ×  6% = $160

P/yr = 1

n = 16

i = 14%

PV = ?

Using the Financial calculator to enter the values as above, the Pv is $1,125.30.

Thus, the price of the bond is $1,125.30.

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Radner Shipping purchased a truck and a trailer for $90,000. An appraisal has set the fair market values of the truck and the tr
Monica [59]

Answer:

Truck $54,000

Explanation:

Basket purchase price of assets is always pro rated in ratio of their fair values

=90,000*(60,000/100,000

=54,000

Truck=$54,000

Trailer=90,000-54,000=$36,000

3 0
3 years ago
Which situation is an example of comparative advantage in an international market?
Ede4ka [16]

Factories in Country A can produce the same number of tablets as factories in Country B, or the factories in Country A could be used to build more laptops than the factories in Country B is an example of comparative advantage in an international market.

<u>Explanation: </u>

The comparative advantage of manufacturing a good or service is smaller than that of other nations. Opportunity cost compensation measures.  

A country with a comparative advantage pays off. The benefits of buying are higher than the drawbacks.  

Perhaps the nation isn't the best producer. But for other countries, good or service costs are low.

For Example, Call centers in India. U.S. businesses buy the service because the location of the call center in America is cheaper. Call centers in India are no different than U.S. call centers. Their employees don't always talk very clearly in English. Nonetheless, they offer the service inexpensive enough to make the deal worthwhile.

6 0
3 years ago
Read 2 more answers
Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec
Oksana_A [137]

Answer:

$250,000

Explanation:

Calculation for the cash flows from operating activities to be reported on the Statement of Cash Flows

Using this formula

Cash flows=Income Statement+(Accounts receivable arising from sales)

Let plug in the formula

Cash flows=$240,000 +($80,000-$70,000)

Cash flows=$240,000 +$10,000

Cash flows=$250,000

Therefore the cash flows from operating activities to be reported on the Statement of Cash Flows is $250,000

6 0
2 years ago
Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. If the bank lends the maximum amount of
Scorpion4ik [409]

Answer:

check able deposits = $500

correct option is C. $500

Explanation:

given data

cash deposit = $100

reserve ratio = 20%

to find out

check able deposits

solution

we will apply here check able deposits formula that is express as

check able deposits = cash deposit + ( deposit cash - ( deposit cash × reserved ratio ) × \frac{1}{reserve ratio} )     ...........................1

put here value we get

check able deposits = $100 + ( $100 - ( $100 × 20% ) × \frac{1}{0.2} )

check able deposits = $500

correct option is C. $500

8 0
2 years ago
If contracting a vendor for multiple locations, particularly over a wide geographic area, the most important factor would be
OLga [1]

Criteria in contracting a vendor are:

<span> Years in business Ability to constantly supply products. Ability to supply complete requirements. Flexibility to allow changes in orders or product lines. Substantial catalogue of products. Has staff that can answer questions you may have. Testimonials and references. Sustainability and financial stability. Prices. Delivery times. Terms of business. Customer service. </span>

<span>The most important factor to consider in contracting a vendor for multiple locations would be delivery times. </span><span>You need assurance that deliveries can be made where and when you want them.</span>

5 0
3 years ago
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