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4 years ago

Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150.

Business

1 answer:

blondinia [14]4 years ago

6 0

Answer:

interest rate = 15%

value of the bond will decrease

Explanation:

given data

face value = $5,000

time = 5 year

annual coupon payment = $150

solution

we get here interest rate on the borrowed funds that will be as

interest rate = $\frac{annual\ coupon}{face\ value/time}$ × 100

put here value we get

interest rate = $\frac{150}{\frac{5000}{5} }$ × 100

interest rate = 15%

and

when bond issued at interest rate = 3 %

but market interest rate 4%

so seller will reduce price of bond less than the face value

because we will look for atleast 4% payout when bond matures

so value of the bond will decrease

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The amount of the good that buyers are willing and able to purchase at a given price is<br> called

monitta

The amount of a good or service buyers are willing and able to trade at a given price is known as the quantity demanded of that good or service. ... A demand schedule is the tabular representation of all the quantities demanded at different prices whereas a demand curve is a graphical manifestation of the demand schedule.

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3 years ago

Shirley analyzed her company’s product line of refrigerator magnet products. She then deleted a few tourist magnets that had los

ololo11 [35]

Explanation:

In this question it can be seen that Shirley is using a comprehensive product management marketing approach to adjust the company's line of magnets, focusing on the pricing strategy and positioning of some products, which can be seen in the question when Shirley discovered that the group of emoji magnets needed more market penetration, and so through that she created a campaign, analyzed the statistics of the total line and adjusted and identified some synergies for the new products, which made it possible to adjust the overwall of the product line and not just individual products.

Shirley considered the way products work together as collectives and how one product can influence another.

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4 years ago

The new car you just purchased cost $25,499. You have saved $3,240 for the down payment (made at the time of purchase) and will

tamaranim1 [39]

Answer:

The correct option is |(45) = $41.54, P(45) = $319.52

Explanation:

Loan amount = Price - Down payment = $25499 - $3240 = $22259

Monthly interest rate = i = 5.25%÷ 12 = 0.004375

Number of installments = n =72

Monthly installment=$22,259 × (A/P,0.004375,72)

Calculating the interest factor;

$\small (A/P,i,n)=\frac{i}{1-\frac{1}{(1+i)^{n}}}$

$\small (A/P,0.004375,72)$ = $\frac{0.004375}{1-\frac{1}{(1+0.004375)^{72}}}$ = 0.0162212

So,

Monthly installment=$22259 × 0.0162212= $361.0677

Now let us calculate the balance after 44th payment

B(44)= [$22,259 × (F/P,0.004375,44)] - [$361.0677 × (F/A,0.004375,44) ]

Calculating the interest factor;

(F/P,0.004375,44) = $(1+0.004375)^{44}$ = 1.2117676

$\small (F/A,i,n)$ = $\frac{(1+i)^{n}-1}{i}$

$\small (F/A,0.004375,44)$ = $\frac{(1+0.004375)^{44}-1}{0.004375}$ = 48.4040257

So,

B(44)= [$22,259 × 1.2117676] - [$361.0677 × 48.4040257] = $9495.6532

So, interest for 45th payment = I(45) = Balance due × Monthly interest rate

=9495.6532 ×0.004375

= $41.54

Principal associated with 45th payment=Monthly installment-Interest payment

=$361.0667 - $41.5435

= $319.5232

≅$319.52

6 0

4 years ago

Economists are: Select one: a. concerned with developing theories and interested in solving problems. b. interested in solving p

Roman55 [17]

Answer:

a. concerned with developing theories and interested in solving problems.

Explanation:

The term economists refer to the person who studies, theorizes, analyzes, and develops concepts in the discipline of economics. Economists have the excellence and work in the field of academia, in the government sector and private sectors. They are experts whose opinions and researches help in the building up of the policies related to the economic terms of the market. They theorize the concepts and researchers on the market trends to help in the growth of the economy respectively.

4 0

3 years ago

When the price of good a increases, the total revenue from good a is unchanged. from this we know that the demand for good a is:

DaniilM [7]

When the price of good a increases, the total revenue from good a is unchanged. From this we know that the demand for good a is unitary elastic

Whenever the change in the price of a good occurs there is a change in the demand of the good as well. This certainly affects the revenue generated from that good.

This change in demand can be mainly classified into different types i.e. elastic, inelastic and unitary.

However, unitary elastic demand is the one in which change in the price causes exact proportionate change in the demand as well. This means that the revenue generated from the good remains unchanged.

In other words, the good is being consumed in the same amount and price has not affected the consumption.

If you want to know more about the unitary elasticity demand, click here
brainly.com/question/14299595

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8 0

2 years ago