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WITCHER [35]
3 years ago
11

If an investor purchases $1,000 face amount of an 8% corporate bond at 93. The bond is scheduled to mature in 2028. What will ha

ppen when the issue matures
Business
1 answer:
sdas [7]3 years ago
7 0

Answer:

The amount to be paid is $100,440

Explanation:

When the bond matures, it is the due date on which the bond issuer need to pay off the bond on that particular date.

In this case, the bond matures in 2028, so

Interest amount = Face value of bond × Price × Interest

= $1,000 × 93 × 8%

= $7,440

The amount to be paid on maturity will be:

= $7,440 + $93,000

= $100,440

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Shareholders in Frontier Communications were not pleased to learn that the company's market share had changed from 40 to 21 perc
Alja [10]

Answer:

47.5\%

Explanation:

Given: The company's market share had changed from 40 to 21 percentage points.

To find: percent change in market share

Solution:

Change in percentage of company's market share =40-21=19

Percent change in market share = (Change in percentage of company's market share ÷ 40) × 100

=\frac{19}{40}(100)=47.5\%

6 0
3 years ago
These five things should be looked for in a career/ministry:
kipiarov [429]

Personal qualifications, occupational requirement, responsibilities, financial remuneration (pay) , working conditions.

Days off and vacation flexibility are 2 examples of things that fall under the working conditions category.

8 0
3 years ago
You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect i
Liono4ka [1.6K]

Answer:

Yes, you should take the MBA because the NPV of taking the MBA is positive.

Explanation:

the total economic costs of taking the MBA program include the lost wages + the costs of taking the MBA and any interest you could have earned by investing it on something else = ($50,000 x 1.03) + ($50,000 x 1.03²) + (2 x $30,000 x 1.08) = $51,500 + $53,045 + $64,800 = $169,345

the present value of your total economic costs:

$51,500/1.08 + $53,045/1.08² + $32,400/1.08 + $32,400/1.08² = $47,685.19 + $45,477.54 + $30,000 + $27,777.78 = $150,940.51

if you continued to work, your salary at year 3 would be $54,636.35 and it would continue to increase by 3% every year. The salary that you can earn with an MBA is $80,000 and it will grow by 4% per year. I used an excel spreadsheet to calculate future salaries and the differential amount between them. Then I calculated the PV at the beginning of year 3 of the differential income.

The PV of the differential income today = $560,281.31 /1.08³ = $444,769.38

the NPV of taking an MBA = $444,769.38 - $150,940.51 = $293,828.87

6 0
3 years ago
You are trying to decide between a par value corporate bond carrying a coupon rate of 6.25% per year and a par value municipal b
FinnZ [79.3K]

Answer:

D.

Municipal bond because the equivalent taxable yield is 6.6%

Explanation:

we should make the important difference that municipal bonds are tax free while corporate bonds don't.

Therefore we should solve for the after tax rate fo the corporate bond:

pretax (1-t) = after tax -rate\\0.0625(1-0.28) = 0.0625(0.72) = 0.045

The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive

We can also solve for the pre-tax rate of the municipal bond:

pretax(1-t) = after tax - rate\\pretax (1-0.28) = 0.0475\\pretax = 0.0475/0.72 = 0,065972 = 0.066

the municipal bonds would be equivalent to a 6.6% corporate bonds.

This makes option D correct.

6 0
3 years ago
On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0
Aneli [31]

Answer:

Accumulated depreciation= $276,000

Explanation:

Giving the following information:

On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.

Depreciable value= 700,000 - 10,000= 690,000

Straight-line depreciation= 690,000/5= $138,000

Accumulated depreciation= 138,000*2= $276,000

5 0
3 years ago
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