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ehidna [41]
4 years ago
12

g Assume that a 15-year, $1,000 face value bond pays interest of $37.50 every 3 months. If you require a simple annual rate of r

eturn of 12 percent, with quarterly compounding, how much should you be willing to pay for this bond
Business
1 answer:
NemiM [27]4 years ago
3 0

Answer:

I will pay $1,207.56 for this bond.

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = C = $37.5

Number of periods = n = 4 x 15 years = 60 periods

Current Yield = r = 12% / 4  = 3% semiannually

Price of the Bond = $37.5 x [ ( 1 - ( 1 + 3% )^-60 ) / 3% ] + [ $1,000 / ( 1 + 3% )^60 ]

Price of the Bond = $37.5 x [ ( 1 - ( 1.03 )^-60 ) / 0.03 ] + [ $1,000 / ( 1.03 )^60 ]

Price of the Bond = $1,037.83 + $169.73

Price of the Bond = $1,207.56

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When all four elements of clarification, culture, compliance and connection are effectively addressed through a strategic onboarding system, the organization will be considered successful onboarding.

<h3>What is the successful onboarding?</h3>

A successful onboarding program is most expected to include clarification, compliance, culture, and connection and follow-ups, relying on the size and needs of any company. This is also called as the 4 C's of the onboarding.

Therefore, It all start out in the present moment, a new employee accepts the position.

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6 0
2 years ago
Karson, the managing director of a multinational corporation, punishes his employees for coming late to work by deducting their
emmainna [20.7K]

Karson os using his authorities

7 0
3 years ago
A cost accounting system includes which of the following?
saul85 [17]

Answer:

c. It is used to record costs of selling activities.

Explanation:

Cost Accounting Provides the cost of all the activities involved in the selling activities like production cost and all operational costs. It Measure and reports all the of all costing units. It also assesses cost structure of every the organization. It is not associated with any any particular type of Inventory costing system, It deals with all accounting systems.

7 0
3 years ago
Read 2 more answers
1. A firm in a competitive market has the following cost structure: Output Total Costs 0 $10 1 $12 2 $15 3 $19 4 $24 5 $30 6 $37
iogann1982 [59]

Answer:

b. 6 units

Explanation:

Output     Revenue  Costs = Profit  ( Revenue - Costs)

   0                   0         10 =  -10

   1                    8         12 =  -4

   2                   16        15 =   1

   3                   24        19 =   5

   4                   32        24 =   8

   5                   40        30 =   10

   6                   48         37 =   11

   7                   56        46 =   10

   8                   64        55 =   9

   9                   72        65 =    7  

Note: The revenue is calculated by multiplying output by the market price of $8.

The firm should produce 6 units to maximize their profit which is $11.

3 0
3 years ago
Accounts on the left side of the accounting equation (assets) are increased with a(n) to the account, whereas accounts on the ri
Nady [450]

Answer:

Debit and credit

Explanation:

While recording the transaction, the accounts are debited or credited based on the nature of the transaction

As we know that

The debit section reports assets and expenses side while the credit section reports sales revenue, stockholder equity, and the liability side.  

So if the asset side or expense side is increased than it would be displayed on the left-hand side while the revenue is increased than it would be reflected on the right-hand side.

8 0
4 years ago
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