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zepelin [54]
4 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]4 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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il63 [147K]

Answer:

Please see the answers below:

Explanation:

(O+) a. Increase in accounts payable

(F-) b. Payment of dividends

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(F+) d. Issuance of common stock

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(O+) f. Loss on sale of land

(O+) g. Depreciation expense

(O-) h. Increase in inventory

(O+) i. Decrease in accounts receivable

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3 0
3 years ago
A group of fifty homeschooling parents in New Jersey get together and form a nonprofit membership organization for the purpose o
Furkat [3]

Answer: Cooperative

Explanation:

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4 0
3 years ago
True or False. The primacy effect refers to the tendency to recall the items at the beginning and end of a list better than the
fgiga [73]

Answer:

The correct answer is the option: False.

Explanation:

To begin with, the primacy effect, in the fields of psichology and sociology is known as a cognitive bias and is part of a serial-position effect among with the recency effect. Moreover, the term<u><em> refers to the tendency to recall the information at the beginning only</em></u> of a list better that the information in the middle and at the end of that same list.

Secondly, the recency effect is the one that establishes that a person tends to recall the items at the end better that the items at the beginning or middle.

6 0
4 years ago
Enerico contributes $100,000 cash in exchange for a 40% interest in the calendar year ABC LLC. This year, ABC generates $80,000
Natasha_Volkova [10]

Answer:

A)$32000.00

B)$4000

Explanation:

3 0
3 years ago
Sara bought new lighting from a company and also hired the company to install new lighting for his business. The cost was going
lapo4ka [179]

Answer:

True

Explanation:

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4 0
4 years ago
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