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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

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Which kind of feasibility is concerned with whether the organization has the skills needed to properly apply a given technology
tino4ka555 [31]

Answer: technical feasibility

Explanation:

Technical feasibility shows how s company or an organization will deliver the goods and service to the customers. Technical feasibility is vital as companies will be able to know whether the technical resources that the company possesses will meet its capacity.

It should also be noted that technical feasibility is concerned with whether the organization has the skills needed to properly apply a given technology.

7 0
3 years ago
On a 3-day fishing trip, 4 adults consumed food costing $60. for the same costs per person per day, what would be the cost of fo
sp2606 [1]

The total cost is $175.

The first thing that you need to do is calculate the per day cost per person.

$60 was spent on a three day trip. $60/2 = $20 per day. There were 4 adults on the trip, so $20/4 = $5. The cost of food is $5 per person per day.

On a trip with 7 adults the formula to solve the total cost is:

7 adults x 5 days x $5/day = $175.

6 0
3 years ago
Which of the following is likely to have the most price elastic demand?a. ice creamb. frozen yogurtc. vanilla ice creamd.Häagen-
zepelin [54]

Answer:

Haagen-Dazs vanilla bean ice cream

Explanation:

Demand is said to be most elastic if a slight change in price leads to a drastic change in quantity demanded. Normal goods are least elastic as increase in price does not lead to tremendous decrease in price.

However, luxury goods are most elastic as these goods are preferred when their prices are lower. They are not essential. As such, demand falls drastically in case of rise in price. So, Haagen-Dazs ice cream would have most price elasticity as this is a luxury good and rest of the items are normal goods.

3 0
3 years ago
Howes inc. purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. if the firm chooses to pay on
Scorpion4ik [409]

Answer: The cost of non-free trade credit is 23.45%

We follow these steps to arrive at the answer

We have:

Discount Rate     2%

First we find \frac{Discount Rate}{1 - Discount Rate}.

\frac{Discount Rate}{1 - Discount Rate} = \frac{0.02}{1 - 0.02}

\frac{Discount Rate}{1 - Discount Rate} = \frac{0.02}{0.98} = 0.020408163

Adding 1 to the number above we get 1.020408163

Next we'll find the number of extra credit days after the discount period.

Extra credit days = Total credit days - Discount period

Extra credit days = 50 - 15 = 35 days

Next we need to raise 1.020408163  to the fraction of 365/35. We get

1.020408163^{ 365/35} = 1.234523883

Finally we need to deduct 1 from the number above to get 1.234523883 -1 = 0.234523883

We express the number above as a percentage to arrive at the cost of non-free trade credit.

4 0
3 years ago
Which of the following statements about sales promotions is​ correct?A. The use of sales promotions has declined in recent years
ZanzabumX [31]

Answer:

B. The heavy use of sales promotions has resulted in promotion clutter.

Explanation:

Sales promotion clutter refers to the high number of promotional messages or materials a consumer is presented with every day.  When there are excessive promotion messages in the market, it becomes difficult for a business to stand out from the cloud. Today, TVs, Radio, Newspapers, and billboards carry hundreds of promotional messages. The business has to be innovative to cut through the clutter in the marketplace.

Sales promotions are still relevant in the market. Business must find unique and effective ways of capturing consumers attention while doing sales promotion. For example, companies are creating hilarious commercial video and posting them through social media websites. Business can make use of senses such as sound, sight, touch and smell in strategic locations such as shopping mall, retails centers, or in traffic jams to draw customers attention.

8 0
3 years ago
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