Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. T
he bond makes no payments for the first six years, then pays $900 every six months over the subsequent eight years, and finally pays $1,300 every six months over the last six years. Bond N also has a face value of $20,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 5.4 percent compounded semiannually. What is the current price of Bond M and Bond N
The price of the bond is the present value of all cash inflows expected from the bond throughout the bond's life.
The cash inflows comprise of coupon interest interest payments as well as the repayment of the principal amount(the face value of $20,000) at redemption.
The present value is computed by multiplying the cash inflows by the discount factor.
The formula for discounting factor =1/(1+r/2)^t
r is the required yield of 5.4% divided by 2 since the coupon is payable twice a year.
They own and control the functions of the organization.
Explanation:
A cooperative is owned by the total of their affiliates who are the direct users of it. This means that if you want to use the cooperative you must be an owner/affiliate.
Renaldo would earn <span>2817.63. You take the $ of sales and multiply it by the commissions percentage, then add the number you get with the flat salary to get his total $ earned that month.</span>
