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Zolol [24]
3 years ago
13

A​ zero-coupon bond is a bond that is sold now at a discount and will pay its face value at the time when it​ matures; no intere

st payments are made. A​ zero-coupon bond can be redeemed in 20 years for $ 10 comma 000. How much should you be willing to pay for it now if you want a return​ of: ​(a) 9​% compounded monthly question mark ​(b) 9​% compounded​ continuously?
Business
1 answer:
ki77a [65]3 years ago
3 0

Answer:

P = $1664.12 pay with 9​% compounded monthly  

P = 1652.98 pay with  9​% compounded​ continuously

Explanation:

given data

time period = 20 year

amount = $10000

solution

we get here compound interest for 9​% compounded monthly that is express as

FV = P\times (1+\frac{r}{n})^{nt}    .................1

here P is principal amount and r is interest rate and n compound in year and FV is future value

$10000 = P\times (1+\frac{r0.09}{12})^{12\times 20}  

solve it we get

P = $1664.12 pay with 9​% compounded monthly  

and

for 9​% compounded​ continuously

FV = P\times e^{rt}   ............2

$10000 = P\times e^{0.09\times 20}

solve it we get

P = 1652.98 pay with  9​% compounded​ continuously

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<h3>What is gross margin?</h3>

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Putting the value of total sales in the given formula, the gross margin is $32,000 when the cost of goods being sold has increased by around 1 percent.

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B. Chat

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The Blanket Company (TBC) manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per-
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Answer:

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The Blanket Company (TBC)

Income Statement

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Variable costs                    <u>($946,000)</u>

Contribution margin            $858,000

Fixed costs                         <u>($743,000)</u>

Operating income                $115,000

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