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slega [8]
3 years ago
8

The Sisyphean Company has a bond outstanding with a face value of $ 1 comma 000 that reaches maturity in 10 years. The bond cert

ificate indicates that the stated coupon rate for this bond is 9.2​% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.2​%, then the price that this bond trades for will be closest​ to:

Business
1 answer:
Elena-2011 [213]3 years ago
7 0

Answer:

$1,140.85

Explanation:

We use the Present value formula that is shown on the attachment below:

Data provided in the question

Future value = $1,000

Rate of interest = 7.20%  ÷ 2 = 3.60%

NPER = 10 years  × 2 = 20 years

PMT = $1,000 × 9.2% ÷ 2 = $46

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price of the bond is $1,140.85

In semi annually, the coupon rate and the interest rate would be half whereas the time period is doubles

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(ECONOMICS)
Oxana [17]

The correct answer is Diminishing Marginal Utility.

When the first unit of goods and service consumption has more utility than the second and continues to reduce great amounts then the marginal utility increase its consumption.

The endowment is where marginal change starts. Across the ranges which are relevant to making decision are the ones which are referred to as diminishing marginal utility. An individual gains when consumption increases for a certain good and then allows an increase in utility.

The value of goods and time preference are good examples of economic phenomena which is numerous. If rate of acquisition increases, there is a decrease in marginal utility. When consumption rise continues then the marginal utility it reaches at point when it lowers up ti zero and this it has reached total maximum utility.

6 0
3 years ago
A T-bill with face value $10,000 and 97 days to maturity is selling at a bank discount ask yield of 4.4%. a. What is the price o
Alex73 [517]

Answer: $9,881.44

Explanation:

Price of bill can be calculated with formula:

= Face value * ( 1 - (yield * days to maturity/days in year))

This are usually done using 360 days in a year not 365:

= 10,000 * ( 1 - (4.4% * 97/360))

= 10,000 * 0.9881444444

= $9,881.44

7 0
3 years ago
Tejasi brings suit against her employer under Title VII for disparate treatment on the basis of Texas's national origin. At tria
aleksley [76]

Answer:

<u>Yes</u>

<u>Explanation</u>:

  1. First, the law is against the action she claims her employer did.
  2. Secondly and more importantly is the fact that she has enough evidence to prove that the review of her performance by her employer was discriminatory. This facts are strong prove;

Tejasi received the poor review one week after the boss made his comment and one day before the demotion.

6 0
3 years ago
A period in which the densities of populations increase or decrease at the same time is called a _____.
Travka [436]
Boom Bust Cycle -------- gradpoint!
5 0
3 years ago
Last year, Stevita Inc. shipped 3,000,000 kilograms of goods to customers at a cost of $2,400,000. If an individual customer ord
zlopas [31]

Answer:

$16,000

Explanation:

Overhead Rate = Cost of goods shipped ÷ Kilograms of goods

                          = $2,400,000 ÷ 3,000,000

                          = $0.80 per kilogram

Applied Overhead = Overhead Rate × Order by a individual customer

                               = $0.80 × 20,000 Kg

                               = $16,000

Therefore, the amount of shipping cost assigned to the customer using activity- based costing would be $16,000.

3 0
3 years ago
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