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]
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

You might be interested in
Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a serie
Salsk061 [2.6K]

Answer:

take the payments over time payout

Explanation:

My personal opinion/advice would be to take the payments over time payout. There are many reasons for this, the first one being that most individuals are not used to receiving large sums of cash and usually end up wasting all the money as soon as they receive it, which usually does not occur if the payments are made over time. The second and more important reason is that if the payments are made over different years your would pay a much lesser amount on taxes every year that passes. This means that the even with the interest rate you would most likely have more overall money if you take the payments over time.

8 0
3 years ago
If a congressional leader passes a bill favorable to a particular pharmaceutical firm, then resigns to take a consultant positio
umka21 [38]

The answer to this question is that it is an example of regulatory capture.

<span>Regulatory capture is a situation where in the interest of the business or firm is being prioritized by the firm in order for them to advance and succeed. There are two types of regulatory capture; a materialistic capture and non-materialistic capture.</span>

5 0
3 years ago
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of prod
DedPeter [7]

Answer:

Recher Corporation:

a) Financial impact of buying part Q89:

i) Relevant costs for In-house production of part Q89 are the avoidable costs:

Direct materials - $7.60

Direct labour - $4.20

Variable overhead - $8.30

Supervisor's salary $3.20

Avoidable general overhead - $0.81

Avoidable cost = $24.11 per unit

Total = $24.11 x 6,200 = $149,482

ii) Relevant cost of buying outside equals outside price minus additional segment savings = (6,200 x $27) - $15,600 = $151,800

When i) is compared with ii), it shows that it would cost more to buy outside ($151,800) than to produce the part in-house ($149,482).

b) The alternative the company should choose is to produce in-house.

Explanation:

a) The avoidable general overhead of $0.81 was obtained by dividing $5,000 of general overhead by 6,200 units, i.e. $5,000 / 6,200.

b) The depreciation for the special equipment is not included as it is not relevant.  It must be incurred no matter the option chosen.

c) The relevant cost of buying the part outside was reduced by $15,600 since this amount would be realized as additional margin with the choice.

d) |n making cost decisions, relevant and avoidable costs are considered.  Any cost that will be incurred notwithstanding the choice made is not relevant.  Such costs are unavoidable.  For example, the depreciation on the equipment.

5 0
3 years ago
Would this topic be studied in microeconomics or macroeconomics: If the amount of money in the economy increases more than the a
AleksAgata [21]

Answer:

Both microeconomics and macroeconomics involve examining economic behavior, but they differ in terms of the scale of the subjects being studied.

Explanation:

Microeconomics is the field of economics that looks at the economic behaviors of individuals, households, and companies. Macroeconomics takes a wider view and looks at the economies on a much larger scale—regional, national, continental, or even global. Microeconomics and macroeconomics are both vast areas of study in their own rights.

8 0
3 years ago
Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among stu
Darina [25.2K]

Answer:

C_2C

Explanation:

C_2C marketing is called consumer to consumer marketing

It is the making of product or administration with the particular limited time procedure being for shoppers to impart that item or administration to others as brand advocates dependent on the estimation of the item.  

The most noticeable instances of C_2C incorporate eBay, an online closeout web page, and amazon which is used for costumer service.

4 0
3 years ago
Other questions:
  • As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental
    6·1 answer
  • Suppose i would like to prevent a line break in word from splitting apart my customer's title and name, "mr. jones", should it h
    13·1 answer
  • When you encounter an organization where employees are quite intense, focused, and determined to win, you have encountered an or
    12·1 answer
  • The Style of leadership uses a hands-off approach,allowing the group to direct itself. Authoritarian. Democratic. Laissez-faire
    12·2 answers
  • Who is Jake from Statefarm??
    8·2 answers
  • Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is c
    12·1 answer
  • It costs Sunland Company $28 of variable costs and $18 of allocated fixed costs to produce an industrial trash can that sells fo
    13·1 answer
  • The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 50
    12·1 answer
  • Suppose potential income is $80 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual bu
    8·1 answer
  • In managing production worker compensation and expenditures for best practice training, the overriding objective of company mana
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!