1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katyanochek1 [597]
4 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]4 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

You might be interested in
What financial behaviors will typically lead to a low credit score?
levacccp [35]
The behavior that will typically lead to low credit score is <span>A. Maxed out credit cards
When people maxed out their credit cards, the credit card company will most likely to make additional charges before the balance is paid out. Maxed out credt cards would be interpreted as having uncontrollable consuming behavior and will result in low-credit card score.</span>
5 0
3 years ago
Establishing a 1%/10 Net 30 term would be considered a benefit to a favorite customer and should typically be offered after they
Elodia [21]
The statement is false. It would be an advantage to both the client and the organization. This would mean if the client needs a markdown from the provider they would need to pay the receipt inside 10 days to get the rebate, and this would then enable the organization to get their cash speedier.
6 0
4 years ago
Which loan type requires you to make loan payments while you’re attending school?
FrozenT [24]
I think the correct answer from the choices listed above is option A. The loan type that  requires you to make loan payments while you’re attending school would be unsubsidized federal loan. For this type, y<span>ou are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. Hope this answers the question.</span>
5 0
3 years ago
Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 60 packages pe
lisabon 2012 [21]

Answer:

a. What is the MRP per driver per day?

  • the marginal revenue product per driver = 60 packages x $20 = $1,200 per day

b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60  packages per day What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced?

  • if the drivers were already delivering 60 packages per day without the supervisor, then the addition of the supervisor doesn't change anything. So the MRP of the supervisor is $0. That means that the company's profits will decrease by $300 per day due to the supervisors.

c. How many packages per day would each vehicle have to deliver in order to maintain the firm's profit per vehicle after supervisors are introduced?

  • $300 / 20 = 15 packages per day
  • in order to maintain the profit per vehicle, each team of delivery man + supervisor should be able to deliver 75 packages per day.

d. Suppose that the number of packages delivered per day cannot be increased but that the price per deliver might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm's profit per  vehicle after supervisors are introduced?

  • $300 / 60 = $5
  • the price of each package delivered should increase by $5 to $25 per package.
6 0
3 years ago
In a practical sense, the best size for a team is:A. between two and twenty-five members.B. five or fewer people.C. determined b
natali 33 [55]

C is the correct answer because it really varies depending on the game.

3 0
3 years ago
Other questions:
  • What is one thing you can do to help remember a new business contact? Write_______________
    5·1 answer
  • Which of the following is NOT an example of the technical support that the International Monetary Fund (IMF) provides to governm
    15·1 answer
  • Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel ma
    7·1 answer
  • QUESTION 2
    15·1 answer
  • 12. Taxes can have all of the following economic effects EXCEPT
    11·1 answer
  • Prepare journal entries to record the following transactions entered into by the Merando Company: 2016 June 1 Received a $10,000
    9·1 answer
  • If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers
    12·1 answer
  • When shoppers boycotted target because the chain had a policy of not allowing solicitors, including the salvation army, to colle
    6·1 answer
  • The following selected transactions occur during the first year of operations. Determine how each should be reported in the stat
    10·1 answer
  • You have established a new business in your neighbourhood
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!