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Ostrovityanka [42]
3 years ago
8

Union Local School District has a bond outstanding with a coupon rate of 2.8 percent paid semiannually and 16 years to maturity.

The yield to maturity on this bond is 3.4 percent, and the bond has a par value of $5,000. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
mafiozo [28]3 years ago
3 0

Answer:

$4,420.35

Explanation:

Bond Price = C x [1 - (1 + r)^{-n} / r] + F / (1 + r)^{n}

Where:

  • C = Coupon
  • r = Yield to Maturity
  • n = compounding periods to maturity

Now we plug the amounts into the formula =

Bond Price = $140 x [1 - (1 + 0.034)^{-32} / 0.034] + $5,000 / (1 + 0.034)^{32}

Bond Price = $4,420.35

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Answer: The complete table is as follows:

Explanation:

The following are the formulas for calculating marginal product , total revenue and marginal revenue product:

Marginal product = \frac{Change\ in\ Total\ Product}{Change\ in\ Capital}

Total revenue = Price × Quantity

Marginal revenue Product = Marginal product × Price

By using these formulas, I have completed the following table:

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3 years ago
I am writing an essay and need a word for a person that is damaged or broken because he was terrified when he came out of a haun
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They can be described as traumatized, horrified, mortified, etc.
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2 years ago
Equipment with a cost of $225,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 10,000 hours. It
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Answer:

The depreciation is $52,500

Explanation:

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= \dfrac{(original\ cost - salvage\ value )}{Number\ of\ years}

= \dfrac{(\$225,000 - \$15,000)}{4\years}

= $52,500

Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.

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4 0
2 years ago
On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note requir
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Answer:

1. Debit Interest Expense $7,000; debit Notes Payable $7,238; credit Cash $14,238.

Explanation:

The journal entry is shown below:

Note payable A/c Dr $7,238

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  To Cash A/c $14,238

(Being the first payment on the note is recorded)

The computation of the interest expense is shown below:

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3 0
3 years ago
The Gable Inn is an all-equity firm with 16,000 shares outstanding at a value per share of $14.50. The firm is issuing $50,000 o
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Answer:

12,552 shares

Explanation:

Data provided:

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= Debt issued / value of each share

on substituting the respective values, we have

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4 0
2 years ago
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