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Yuki888 [10]
3 years ago
6

Kebt Corporation's Class Semi bonds have a 12-year maturity and an 8.75% coupon paid semiannually (4.375% each 6 months), and th

ose bonds sell at their $1,000 par value. The firm's Class Ann bonds have the same risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is callable. At what price should the annual payment bond sell? $937.56 $961.60 $986.25 $1,010.91 $1,036.18
Business
2 answers:
tangare [24]3 years ago
7 0

Answer: $986.25

Explanation:

Mazyrski [523]3 years ago
3 0

Answer:

Total $986.2534

Explanation:

We have to discount the annual bond against the same rate but compounding semiannualy

(1+ 0.0875/2)^2 -1 = r_e\\1.0894140625 - 1 = r_e\\0.0894140625 = r_e

Now we discount the 12 coupon payment and the maturity at the given discount rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 87.500 (1,000 x 0.0875)

time 12

rate 0.0894140625

87.5 \times \frac{1-(1+0.0894140625)^{-12} }{0.0894140625} = PV\\

PV $628.4172

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   12.00

rate  0.0894140625

\frac{1000}{(1 + 0.0894140625)^{12} } = PV  

PV   357.84

PV c $628.4172

PV m  $357.8362

Total $986.2534

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Answer:

b ithink

Explanation:

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3 years ago
According to TASB, school districts may approach voters to issue bonds for?
leva [86]

The TASB, is the Texas Association of School Boards. A bond is an agreement between a company and a person or two or more people on the purchase of an item, most of the times known as a bond. In this case, the agreement is between the school district and the bond holder. The district pays the bondholders interest and the bond holder receives a tax write off for donating to the school district.

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3 years ago
Scenario: Frankfurter Friday Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog joint in O
il63 [147K]

OPTIONS:

A. Individualism

B. Imperialism

C. Ethnocentricism

D. Collectivism

Answer:

C. Ethnocentricism

Explanation:

Ethnocentrism is a term that is used to describe the belief people hold about their culture or group and how they view other’s culture, in such a way that they consider theirs superior to others, and judge others way of life or culture as inferior.  

The trait displayed by Craig is that of ethnocentrism, as he considers the people of China less competent and less skilled than the people of his country. Such trait would be detrimental to the success of his company establishing a chain in China, hence, Betty decided not transfer him to join the team going to China to establish a chain there.

6 0
3 years ago
Suppose that real GDP is currently ​$13.55 trillion and potential real GDP is​ $14.0 trillion, or a gap of ​$500500 billion. The
Georgia [21]

Answer:

$100 billion

Explanation:

Real GDP is currently = ​$13.55 trillion

Potential real GDP =​ $14.0 trillion

Gap = ​$500 billion

Government purchases multiplier = 5.0

Tax multiplier = 4.0

To increase aggregate demand by $500 billion, the required increase in government expenditure is:

= (1 ÷ government purchases multiplier) × change in aggregate demand

= (1 ÷ 5) × $500

= $100 billion

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6 0
3 years ago
Bridgette wants to start a corporation. She is looking for a state in which to incorporate. If she incorporates in the state wit
VladimirAG [237]

<u>Full question:</u>

Bridgette wants to start a corporation. She is looking for a state in which to incorporate. If she incorporates in the state with laws that favor corporate management, where many corporations have incorporated, she will select:

a. Florida.

b. Delaware.

c. Michigan.

d. Colorado.

<u>Answer:</u>

If she incorporates in the state with laws that favor corporate management, where many corporations have incorporated, she will select:  Delaware

<u>Explanation:</u>

When deciding to begin a business one is expected to accept a pattern of a business unit. Delaware is where several businesses have consolidated. The state of Delaware favors the administration of companies because of their favorable tax rules, as a consequence dragging many businesses to consolidate there. In this state, one can operate a business and experience tax benefits even he or she does not live there.

The state also contributes to powerful business privacy.  Unlike other states, business issues are controlled by specific judges and not judges as done in other states. The state is also favored for its adjustable rules on corporation management as the council and representatives may wish not to live in the state.

7 0
4 years ago
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