When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign proj
1 answer:
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Answer:
$60
Explanation:
According to information on your question. We are to note that an absence or reduction of suppliers could lead to lower supply.
As in this case, the producer supply loss of $60 was incurred as some sellers dropped out of the market as a result of the tax.
Answer:
Price of the bond is $104,236,860.
Explanation:
Given:
Coupon rate is 6% or 0.06
Face value = $119,000,000
Coupon payment each year = 0.06×119,000,000
= $7,140,000
Yield to maturity = 7% or 0.007
Maturity period = 30 years
Price of bond = Present value of face value + present value of coupon payment (annuity)
Price of bond =
PV of $1 for 7%,30 periods = 0.1314
PVA of $1 for 7%,30 periods = 12.409
Substitute the values in above formula:
Price of bond = (119,000,000 × 0.1314) + (7,140,000 × 12.409)
= 15,636,600 + 88,600,260
= $104,236,860
There will be slight difference in final answer as present value table is used. Excel spreadsheet gives an accurate answer.
So, price of bond is $104,236,860