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Nataly [62]
3 years ago
15

Several years ago MMM Company borrowed money through a bond issue with the following features. Each individual bond has a $1,000

par value and a 9% annual coupon interest rate, with interest paid semi-annually (twice per year), and will mature five years from today.
What price should someone who requires an 8% annual rate of return (yield to maturity) be willing to pay for one of these bonds?
Business
1 answer:
Fynjy0 [20]3 years ago
6 0

Answer:

$1040.56

Explanation:

A bond is debt instrument issued by a borrower which promises to pay the holder regular interest for the holding period and the terminal value at the end of the period.

According to the discounted cash flow model, the value of an asset is the present value of the future cash flows arising from the assets discounted at the required rate of return.

Present value is the worth today of an amount expected in the future.The process of calculating the present value is called discounting

To calculate the price of this bond, we shall discount the future cash flows using the required return of 8% per annum, which is the same as 4% per six-month

Interest payment per 6 month = (9% × $1000)/2= $45

PV of interest payment =  45 × (1-  (1.04)^(-2×5))/0.04)= 364.995

PV of redemption value = 1000 ×  1.04^(-2× 5) =               <u>675.56</u>

Price of the bond                                                               1<u>040.56</u>

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Ymorist [56]

Answer:

Telemarketing

Explanation:

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I wish you the best.

5 0
3 years ago
After landing an interview with your dream company, you learn that the interview will consist of questions asking you to demonst
Karo-lina-s [1.5K]

Answer: task leadership

Explanation: The activities of organizing employees, of setting goals and achieving those goals set are all task leadership activities and therefore, questions put forward during an interview by a company are meant to determine if the candidate possesses task leadership. Task leadership focuses on achieving set goals and is used to develop a structured workplace with clearly defined schedules and priorities. As such, it delegates assignments, set clear processes and issue deadlines in order to ensure that members of a team would remain focused and deliver their part of the project in record time.

4 0
3 years ago
Dante, an operations manager at Therma-Pro Insulation, has been put on a big project with a tight deadline. He distributes half
gregori [183]

Answer: Delegation.

Explanation:

Dante being the operations manager in his company has delegated, half of the project work to the supervisors working under him. Delegation involves a higher authority giving a duty to a subordinate to carry-out, of which the subordinate must give a report at the end, on how the duty was carried out.

8 0
3 years ago
Question number 6 I need help
tia_tia [17]

Answer:

6. a)

total fixed costs = $600,000

product mix:

1 Diablo: 2 Call of Duty: 3 Sekiro: 4 Starcraft II

Contribution margin per unit:

  • Diablo = $55 - $22 = $33
  • Call of Duty = $48 - 17 = $31
  • Sekiro = $33 - $12 = $21
  • Starcraft = $22 - $11 = $11

Contribution margin per product mix = $33 + (2 x $31)) + (3 x $21) + (4 x $11) = $172

break even number (in product mix) = $600,000 / $172 = 3,488.37 ≈ 3,489 product mixes

6.b)

  • Diablo = 3,489 games
  • Call of Duty = 3,489 x 2 = 6,978 games
  • Sekiro = 3,489 x 3 = 10,467 games
  • Starcraft = 3,489 x 4 = 13,956 games

7 0
3 years ago
As a business owner, how do you allocate your resources properly?
Afina-wow [57]

Answer:

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Explanation:

6 0
3 years ago
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