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ehidna [41]
3 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]3 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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Please select the economic term that is best described by each statement. People have limited resources. entrepreneurship margin
dlinn [17]

Answer:

scarcity

tradeoffs

Explanation:

Humans have unlimited wants and the resources available to satisfy this wants are limited. Thus, humans have to choose the most important wants and give up less important wants.

For example, if you have $20 and you want to buy a textbook , ice-cream or jeans. Each cost $20. If you need the textbook to study for a test, you would choose the book. Here $20 is the scarce resource. jeans and ice cream are what you traded off

6 0
3 years ago
The following information is available for Montrose Company at December 31: Cash in bank account $ 8,540 Petty cash $ 250 Short-
ANEK [815]

Answer:

Cash $10,430 ; Cash equivalents $20,400

Explanation.

Cash consist of all currencies in hand or any convertible asset which can be converted to cash immediately.

It is to be noted that the assets with high liquidity will be included in cash and cash equivalent balance. They can quickly be converted to cash and would normally have 90 or lesser days to mature.

Solution.

$

Cash in bank. 8,540

Petty cash. 250

Check from customer. 1,350

Money order. 290

Cash. 10,430

The check has a very short maturity period since it will clear within 3-4 working days.

Money order can be cashed immediately .

Therefore;

Cash value is $10,430

For cash equivalent,

Cash equivalent = Money market fund balance + Treasury bills maturing in 60days

Cash equivalents = $10,400 + $10,000

=$20,400.

The amounts considered as cash and cash equivalents as of 31 December are ;

Cash $10,430 , $20,400 respectively.

8 0
3 years ago
Please explain to me CPJ and CRJ immediately I really need in depth explanation​
alukav5142 [94]

Answer:

CRJ means cash receipt journal. ... In higher classes, this journal is not made, it is included in the debit side of cash book. Meaning of CPJ. CPJ means cash payment journal.

8 0
3 years ago
According to PCN analysis, service operations exist only within the area(s) of: a. independent processing.b. independent process
topjm [15]

Answer:

(D). surrogate interaction and direct interaction.

Explanation:

Process Chain Network (PCN) analysis involves designing an organization's processes in such a way that it brings about better interaction with customers.

The PCN analysis highlights three process areas which are; <u>surrogate interaction, direct interaction</u> and independent processing areas.

<em>Service operations only exist within the areas of </em><em>surrogate interaction and direct interaction</em><em>, because they require more interaction with customers and are more personal in nature.</em>

7 0
3 years ago
Read 2 more answers
Troboli is a North American country. The total value of all final goods and services produced in Troboli in the last fiscal year
Natalka [10]

Answer:

GDP as Gross Domestic Product

Explanation:

GDP termed as or stands for Gross Domestic Product, which is a broadest measure of total or aggregate economic activity of the nation in the terms of quantitative evaluation.

GDP states the monetary value of all the services and goods or products with the geographic borders of the nation over the particular period or time.

So, in this case, the aggregate value of all the goods and services by which the economic condition is assessed is referred to as GDP (Gross Domestic Product).

6 0
3 years ago
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