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Katyanochek1 [597]
3 years ago
14

A 3-year bond with 10% coupon rate and $1000 face value yields 8%. Assuming annual coupon payment, calculate the price of the bo

nd. Group of answer choices

Business
1 answer:
nalin [4]3 years ago
5 0

The group of answer choices are missing. Following is the complete question.

A 3-year bond with a 10% coupon rate and $1000 face value yield-to-maturity of 8%. Assuming annual coupon payments, calculate the price of the bond.  Group of answer choices

A. $857.96

B. $951.96

C. $1000.00

D. $1051.54

Answer:

The answer is d. $1051.54

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. The bonds are annual bonds so the coupon payment is per year.

Coupon Payment = 1000 * 0.10  = $100

Total periods = 3

The formula to calculate the price of the bonds today is attached.

Bond Price = 100 * [( 1 - (1+0.08)^-3) / 0.08]  +  1000 / (1+0.08)^3

Bond Price = $1051.54

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When the demand for smartphones increased in Preteresia, a country in Eastern Europe, the smartphone manufacturers started impor
Elan Coil [88]

Based on the actions of Preteresia , we can infer that this scenario best describes <u>Global Convergence</u>.

<h3>What is Global Convergence?</h3>
  • It refers to the current trend of various dimensions of the human life being integrated across nations.
  • Describes the integration of dimensions such as business, culture, the economy, and political policy across nations.

Preteresia in helping Abresia build those facilities, is engaging in global convergence because the industries in both countries are being integrated to allow for more efficient smartphone manufacturing.

In conclusion, this is global convergence.

Find out more on the effects of global convergence at brainly.com/question/18077255.

7 0
2 years ago
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $1,800 in the bank and leave it there: (Do not ro
klasskru [66]

Answer:

A. $54

B. 55.62

C. $70.46

Explanation:

The formula for calculating compound interest is

FV = P (1 + r ) ^n

FV = Future value

P = Present value

R = interest rate

N = number of years

A. $1,800 (1.03) = $1854

Interest rate = $1854 -$1,800 = $54

B. $1,800 (1.03)^2 = $1,909.62

Interest rate = $1,909.62 - $1854 = $55.62

C. $1,800 (1.03)^10 = $2,419.05

To service the interest rate, we have to determine the future value in year 9

$1,800 (1.03)^9 = $2,348.59

Interest rate = $2,419.05 - $2,348.59 = $70.46

I hope my answer helps you

5 0
3 years ago
What factors are encouraging financial institutions to offer overlapping financial services such as banking, investment banking,
Anna11 [10]

Answer:

B. I and II only

Explanation:

I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services

7 0
3 years ago
In the month of October, Tran Incorporated had salaries of $15,000 for factory managers, $18,000 for financial managers, and $42
Sloan [31]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

$15,000 for factory managers

$18,000 for financial managers

$42,000 for company executives.

$98,000 for factory workers

$64,000 for office workers.

To calculate the labor cost we need to separate between indirect and direct labor:

Indirect labor:

Factory managers (manufactury overhead)= 15,000

Direct labor:

Factory workers= 98,000

Total labor cost= $113,000

7 0
3 years ago
Nine years of citizenship and at least 30 years of age is the requirement to be
sineoko [7]
To be chosen to be a senator
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