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Ivahew [28]
3 years ago
7

Bond valuationlong dashSemiannual interest Find the value of a bond maturing in 4 ​years, with a ​$1 comma 000 par value and a c

oupon interest rate of 9​% ​(4.5​% paid​ semiannually) if the required return on​ similar-risk bonds is 15​% annual interest (7.5 % paid​ semiannually).
Business
1 answer:
algol [13]3 years ago
7 0

Answer:

824.28

Explanation:

Market price of a bond is the total sum of discounted coupon cashflow and par value at maturity. This is a 4-year bond with semi-annual payment so there will be 8 coupon payment in total. Let formulate the bond price as below:

Bond price = [(Coupon rate/2) x Par]/(1 + Required return/2) + [(Coupon rate/2) x Par]/(1 + Required return/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + Required return/2)^8

Putting all the number together, we have

Bond price = [(4.5%) x 1000]/(1 + 7.5%) + [(4.5%) x 1000]/(1 + 7.5%)^2 + ... + [(4.5%) x 1000 + 1000]/(1 + 7.5%)^8

                  = 824.28

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The Express Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $ 451 comm
KonstantinChe [14]

Answer:

(1) $1,230,000

(2) 110,000 customers

Explanation:

Given that,

Fixed cost = $451,000 per year

Average sales check per customer = $ 8.20

Average cost of food and other variable costs for each customer = $ 4.10

Income tax rate = 30​%

Target net income = $114,800

(1) Contribution margin ratio:

= (Selling price - Variable price) ÷ Selling price

= ($ 8.20 - $ 4.10) ÷ $ 8.20

= 0.5

Income before tax:

= Net income ÷ (1 - Tax rate)

= $114,800 ÷ (1 - 0.3)

= $164,000

Desired revenue (dollars):

= (Fixed cost + Income before tax) ÷ Contribution margin ratio

= ($451,000 + $164,000) ÷ 0.5

= $1,230,000

(2) Customers are needed to break​ even:

= Fixed cost ÷ contribution per unit

= $451,000 ÷ ($8.20 - $4.10)

= $451,000 ÷ $4.10

= 110,000 customers

8 0
3 years ago
Which scenario best reflects the relationship between production and demand in a recession?
Maurinko [17]

Answer:

you know the more you delete my aswers the more mad i get so your punishment is getting spammed have fun!!!

Explanation:

The post has just arrived and in it a very nice surprise, the discovery that Jacques Seguela, one-time adviser to President Mitterrand, now close confidant of President and Madame Sarkozy (indeed he intoduced them), and something of a legend in French political communications, has dedicated his latest book to little old moi.

With apologies for the missing accents here and in the French bits of the long posting which follows – the dedication to ‘Le Pouvoir dans la Peau‘ (Power in the skin) reads ‘A Alastair Campbell, mon spin doctor prefere’ (three missing accents in one word – mes excuses sinceres).

So what did I do for this honour, you are asking? Well, perhaps the fact that he asked me to read his book, and write a ‘postface’ assessment both of his writing and of the issues he covers, and the fact that I said yes, has something to do with it. He says some blushmakingly kind things in his ‘preface to the postface’, which I will have to leave to French readers of the whole thing (published by Plon). But for the largely Anglophone visitors of this blog, I thought some of you might like to read the said ‘postface’ in English (apart from the bits where I quote direct from his book). I hope all those students who write asking for help with dissertations will find something quotable in it.

Meanwhile I am off to Norway for a conference and a meeting with the Norwegian Labour Party. I’m looking forward to being in the country with the highest ‘human development index’ in the world, and which showed such a mature response to the recent massacre of Oslo and Utoya.

Here is the postface to Le Pouvoir dans la Peau

Jacques Seguela writes about political campaigns and communications not merely as an expert analyst, but as an experienced practitioner. Hence his latest book contains both insights worth heeding, but also enlivening tales of his own experience. He is observer and participant; outsider looking in, and insider looking out.  There is much to look at, not least in France with a Presidential election looming, and the outcome far from easy to predict.

so lol

\

3 0
3 years ago
Jake finds that he can understand where others are coming from and is often the quiet voice of compromise at work. With regard t
arsen [322]

Answer:

Combination of Learning Patterns

Explanation:

There are two classifications of very studied learning styles: sensory and Kolb's. Remember that a person's style of learning results from a combination of different factors: cognitive, affective and psychological.

A sensory classification, also called VAK, highlights that we all have a favorite sense and that we can improve learning if we contemplate these sensory preferences. Mainly, 3 great systems are distinguished to learn the information received: Visual, auditory, kinesthetic.

David Kolb, an educational theorist of American origin, believed that learning developed from three causal factors: genetics, life experiences and environmental experiences.

In this way, he defined 4 types of learning: Active, reflective, theoretical, pragmatic.

The use of various learning styles without preference is called a combination of learning styles.

7 0
3 years ago
a bond issue with a face amount of $500,000 bears interest at the rate of 10%. the current market rate of interest is also 10%.
timofeeve [1]

The Bond will sell at a price that is equal to $500,000 (OPTION A).

Bond: Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental).

A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower.

Interest rates and bond prices are inversely correlated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall.

In a portfolio, bonds continue to offer these advantages whether yields are rising or dropping. I mean, both stocks and bonds may experience a short-term price fall during times of rising interest rates. The price of the bonds will decrease as they react to increased interest rates.

To learn more about Bonds, visit the following link:

brainly.com/question/25965295

#SPJ4

7 0
1 year ago
Wavy Company had a beginning work in process inventory balance of $ 32 comma 900$32,900. During the​ year, $ 54 comma 700$54,700
vampirchik [111]

Answer:

The ending work in process inventory​ balance is $3,120

Explanation:

Ending work in process inventory =

Beginning Work in progress inventory + Direct materials + Direct labor + Manufacturing overhead (applied) – Cost of goods manufactured

Beginning Work in progress inventory =$32,900

Direct materials = $54,700

Direct labor = $64,100​

Manufacturing overhead (applied) = 120% * $64,100 = $76,920

Cost of goods manufactured = $225,500

Ending work in process inventory = $32,900 + $54,700 + $64,100 + $76,920 - $225,500

= $3,120

Therefore, The  ending work in process inventory​ balance is $3,120

3 0
3 years ago
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