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zepelin [54]
3 years ago
6

You bought a 18-year, 7.2% semi-annual coupon bond today and the current market rate of return is 7.8%. The bond is callable in

6 years with a $1,099 call premium. What price did you pay for your bond
Business
1 answer:
kicyunya [14]3 years ago
4 0

Answer:

$ 1,035.18  

Explanation:

The price of the bond can be determined using the pv excel function as below:

=-pv(rate,nper,pmt,fv)

rate is the yield of 7.8%

nper is the number of coupons before the bonds are called which is 6

pmt is the annual coupon i.e face value*coupon rate=$1000*7.2%=$72

fv is the call price in six years' time which is $1099

=-pv(7.8%,6,72,1099)=$ 1,035.18  

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What is a market segment?
Kryger [21]

Answer: A market segment is a group of people who share on or more common characteristics, lumped together for marketing purposes.

Explanation: People, or sometimes groups of people, who share similar thoughts, personalities, income, or lifestyle, will often be grouped together by companies for the purpose of advertising to them more efficiently. When this happens, it is called a market segment.

5 0
3 years ago
Read 2 more answers
Josh separated people who wanted a high quality lawn mower from people who wanted a low priced lawn mower, then saw if different
Vsevolod [243]

Answer:

The correct answer is letter "D": behavioral.

Explanation:

In market segmentation, classifying customers by behavior implies analyzing their consumption patterns to find out what type of product they are likely to buy under what conditions. This research allows companies to know what each type of client is looking for so the corporation can dedicate a tailored item for each market sector. By doing so, the firm increases its opportunities to generate more sales.

3 0
3 years ago
Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased f
inn [45]

If Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719.  During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

First step is to calculate the cash flow to creditor  

Cash flow to creditors   = $21,700 + $29,571  

Cash flow to creditors   = $51,271

 

Second step is to calculate the cash flow to Stockholders

Cash flow to Stockholders =$28,400 - $25,500  

Cash flow to Stockholders =$2,900

Now let determine the cash flow from assets using this formula

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Let plug in the formula  

Cash flow from assets = $51,271 + $2,900  

Cash flow from assets = $48,371

Inconclusion if Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719.  During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

Learn more here:

brainly.com/question/11009567

6 0
2 years ago
The following information is available for Marigold Corp.: Allowance for doubtful accounts at December 31, 2019 $23000 Credit sa
vladimir1956 [14]

Answer: $20500

Explanation:

Bad debt is the amount of money that a credit owes the company and is not willing to be paid hence may not be collected.

The amount that Marigold should record as "bad debt expense" for the year ended December 31, 2020 goes thus:

Bad debt allowance balance needed =

$16700

Add: Bad debt that are written off = $26800

Less: Allowance for doubtful accounts = $23000

Bad debt expense will now be:

= $16700 + $26800 - $23,000

= $43500 - $23000

= $20500

6 0
3 years ago
You need a 30-year, fixed-rate mortgage to buy a new home for $245,000. Your mortgage bank will lend you the money at an APR of
ivanzaharov [21]

Answer:

xcmm this question made me think

Explanation:

LOL

6 0
2 years ago
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