1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wel
3 years ago
8

Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest ra

te of 10 percent and the interest is paid semiannually. The yield to maturity on the bonds is 14 percent annual interest. There are 10 years to maturity.
Required:

Compute the price of the bonds based on semiannual analysis.
Business
1 answer:
Mrrafil [7]3 years ago
3 0

Answer:

The answer is $788.12

Explanation:

Price of the bond is what the issuer will pay for the bond

The payment is semiannual.

Number of years (N) - 20 periods (10 years x 2)

Yield-to-maturity(YTM) - 7%( 14% ÷ 2)

Present Value(price of bond) = ?

Future Value(FV) = $1,000

Payment Coupon(PMT) = $50[(10% x $1000) ÷ 2]

Using a Financial calculator, price of the bond on semiannual basis is

$788.12

You might be interested in
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
hodyreva [135]

Answer:

$3,515

Explanation:

The computation of the catering supplies is shown below:

= Catering supplies per month + per job cost  × expected number of jobs + per meal cost  × expected number of meals

= $350 + $89 × 21 jobs + $9 × 144 meals

= $350 + $1,869 + $1,296

= $3,515

Since the question is asking for planning budget so we considered the expected units in terms of jobs and meals

8 0
3 years ago
Molly, a successful real estate salesperson, took some time off to stay at home with her first child. Days turned into weeks, we
Mariana [72]

Answer:

No

Explanation:

A licensing agreement is a partnership between an intellectual property rights owner (licensor) and another who is authorized to use such rights (licensee) in exchange for an agreed payment (fee or royalty).

Molly cannot simply pick up where she left off because two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.

7 0
3 years ago
An accountant has encountered a perplexing financial reporting issue related to the private college for which he is preparing fi
frez [133]

Answer:

c) AICPA accounting and auditing guide, Audits of Colleges and Universities and/or AICPA SOP 74-8, Financial Accounting and Financial Reporting by Colleges and Universities.

Explanation:

As accounting and auditing guide which is issued by AICPA for health care 3 gives full guidance on how to deal with financial reporting issues for the hospital so the accountant would look into it for any problem related to it.

8 0
3 years ago
Buying food to feed your family, a lawn mower to care for your lawn, or a car to drive yourself to work are purchases with what
Nata [24]

Answer:

Rational Motive

Explanation:

A rational motive is the willingness to make an action based on logical and rational criteria

4 0
3 years ago
The monthly demand q for a monopolist firm's product in a certain market (measured in 1000s of units) is related to the price pe
Gnesinka [82]

Answer: (b) -3.08

Explanation:

The relationship between the demand(q), price per unit product(p) and the disposable income,yd is given by the expression below;

q= 20ln(7yd-2p).

From the expression above, the marginal demand,

∂ q/∂ p is the differential of the equation of relationship between the demand, price and disposable income.

This involves considering the demand,q as the dependent variable and the price per unit product,p as the independent variable and the disposable income,yd is considered constant.

Therefore ,

∂ q/∂ p= (-40)÷(7yd-2p)

By substitution of

yd =$3000÷1000= $3

and p= $4

∂ q/∂ p= (-40)÷((7×$3)-(2×$4))

∂ q/∂ p= -40÷13= 3.08

Please see the attachment for knowledge on how ∂ q/∂ p was obtained.

7 0
3 years ago
Other questions:
  • Creative Sound Systems sold investments, land, and its own common stock for $38 million, $15.8 million, and $41.6 million, respe
    8·1 answer
  • If the same patient has an office visit and the charge is 120.00. the patient has met the annual deductible. if medicare allows
    10·2 answers
  • Elisa grew up speaking Spanish, but learned to speak English as an adult, and she now works as a translator for a U.S. company t
    14·1 answer
  • Pearls, Pearls, Pearls! manufactures and sells jewelry. The total variable cost of goods sold this month is $72,490. Variable se
    6·1 answer
  • If a market is in equilibrium is it necessarily true that all potential buyers and sellers are satisfied with the market​ price?
    5·1 answer
  • Read the following scenario and select the appropriate shifter of demand (what is going to shift the curve) It becomes known tha
    14·1 answer
  • What accurately describes a​ company's efforts to engage​ customers, persuasively communicate customer​ value, and build custome
    11·1 answer
  • Assume Sheryl Jenkins wants to accumulate $ 13,241.39 in two years. She currently has $ 10,621.36 to invest. What interest rate
    10·1 answer
  • Each of the following situations is independent. Work out your own solution to each situation, and then check it against the sol
    6·1 answer
  • FILL IN THE BLANK. The manager of a(n) ______ center does not have control over revenue or the use of investment funds.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!