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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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A progressive tax system is one in which higher-income people pay ____ than lower-income people.
PilotLPTM [1.2K]
More.  

The idea is that the more money you earn, the larger percentage you can afford to pay out of that income to support roads, schools, etc.
3 0
3 years ago
A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal
noname [10]

Answer:

the value of the marginal product of labor is $500

Explanation:

The computation of the value of the marginal product of labor is shown below:

= MRP × price per unit

= 10 units × $50 per unit

= $500

hence, the value of the marginal product of labor is $500

We simply applied the above formula

5 0
3 years ago
Rita Gonzales won the $53 million lottery. She is to receive $2.2 million a year for the next 20 years plus an additional lump s
guajiro [1.7K]

Answer:

PV= $17,365,776.86

Explanation:

Giving the following information:

Cf= 2,200,000

Number of years= 20

Discount rate= 12%

Additional lump sum= 9,000,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000

FV= $167,515,373.4

Now, the present value:

PV= FV/(1+i)^n

PV= 167,515,373.4/1.12^20

PV= $17,365,776.86

7 0
4 years ago
irs guidelines require specific information to substantiate deductible automobile expenses. which 3 items are included in the su
mestny [16]

The three items that are included in the substantiation requirements are:

  • Date Placed in Service
  • The total mileage; and
  • Vehicle Type.

<h3>What is IRS guidelines?</h3>

Internal Revenue Service Guidelines are guidelines that individuals and corporates must follow in order to be compliant with the requirements of the IRS.

Thus, it is correct to indicate that according to the IRS Guidelines, the three items that are included in the substantiation requirements are:

  • Date Placed in Service
  • The total mileage; and
  • Vehicle Type.

Learn more about substantiation requirements at:
brainly.com/question/1297571
#SPJ12

4 0
2 years ago
Darryl’s portfolio includes 66 shares of Essentia Inc., 95 shares of SFT Legal, and 180 shares of Grath Oil. If Essentia Inc. pa
PSYCHO15rus [73]

Answer: d. $579.44

Explanation:

Dividends from Essentia Inc.

= 66*$1.79

= $118.14

Dividends from SFT Legal

= 95*$2.62

=$248.90

Dividends from Grath Oil

=180*$1.18

=$212.4

Total Dividends

=$118.14 + $248.90 + $212.4

=$579.44

Darryl's total Dividends each year amounts to $579.44

7 0
3 years ago
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