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Butoxors [25]
3 years ago
13

LRQ Inc. issued bonds on July​ 1, 2006. The bonds had a coupon rate of​ 5.5%, with interest paid semiannually. The face value of

the bonds is​ $1,000 and the bonds mature on July​ 1, 2021. What is the intrinsic value of an LRQ Corporation bond on July​ 1, 2012 to an investor with a required return of​ 7%?
Business
1 answer:
salantis [7]3 years ago
4 0

Answer:

The face value of the bond is 1,000 and its coupon rate of 5.5% with semi annual payments, which means that 2 payments are made each year. In order to find the amount of each payment we calculate the 5.5% of 1,000 and divide it by 2

1000*0.055/2= 27.5 is Payment

The bond is to be valued at 2012 and has a maturity till 2021 so the number of years to maturity is 9 years which means that the total number of payments are 18 (9*2). The required rate of return is 7%and we will divide it by 2 as payments are semiannual, so we can assume the ytm of the bond is 3.5%. Now as we know the payment, face value, ytm and number of periods we can put this information in a financial calculator and find the price or present value or intrinsic value of the bond.

FV= 1,000

PMT= 27.5

N= 18

I= 3.5

Compute PV = 901.07

The price or present value or intrinsic value of the bond is $901.07

Explanation:

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masya89 [10]

Answer:

Option A is correct.

<u>A decrease in the Equity Investment account</u>

Explanation:

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4 0
3 years ago
A student organization is developing promotions for its clothing fundraiser. Email blasts across campus will be part of the camp
Masja [62]

Answer: Logistic regression

Explanation:

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Logistic regression is the regression analysis that's used to conduct in a case whereby the dependent variable is binary.

With regards to the question, the logistic regression can provide the best model which will be used to forecast the most important features for the opening of the promotional e-mail.

8 0
3 years ago
Dutch, Bill and Heidi were equal partners in a lawn care business. Bill and Heidi wanted to borrow money from the bank to buy mo
Alex Ar [27]

Answer:

Yes, because all three were equal partners in the said business and when the decision was to be made, a greater majority (Bill and Heidi) voted in favor of getting the loan.

Dutch also is thus, liable for the said loan. He ought to have opted out of the partnership if he was dead serious and he would have gotten a fair share of dividends from the said partnership and left the duo to work together

3 0
3 years ago
16. The cost of land can include: A. Purchase price B. Assessments by local governments C. Costs of removing existing buildings
NeTakaya

Answer:

E. All of the above

Explanation:

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Therefore as per the given situation, it includes all the things mentioned in the question

Therefore the correct option is E

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3 0
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Marginal cost
olya-2409 [2.1K]

Answer:

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