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stira [4]
3 years ago
11

You are purchasing a 20-year, zero-coupon bond. the yield to maturity is 8.68 percent and the face value is $1,000. what is the

current market price?
Business
1 answer:
kozerog [31]3 years ago
6 0

Answer:

The answer is <u>"$182.8".</u>

Explanation:

yield to maturity = 8.68 % = 0.0868

face value = $1,000

time period = 20 years

We can solve this by using the formula;

P = $1000/(1 + 0.0868/2)²⁰ˣ²

P = $1000/(1.0434)⁴⁰

P = $1000/5.47

<u>P = $182.8</u>

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Give examples of the ways in which each of the five factors of production can affect the business performance of McDonald's or W
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Gardiner, Inc. reported a retained earnings balance of $190,000 at December 31, 2024. In June 2025, Gardiner discovered that mer
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Answer: $246,000

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Merchandise costing $20,000 had been omitted from the Ending Inventory.

Ending inventory is deducted from Cost of Goods sold which means that the Cost of Goods sold was overstated by $20,000.

Cost of Goods sold are subtracted from sales to find Gross Income so if it was overstated then Income was understated by $20,000.

Accrued Revenue is to be added to Income so if it was omitted then income was understated by $50,000.

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3 years ago
In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your ba
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Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100,00
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Answer:

Monopolist can charge a higher price from women.

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The price elasticity of demand for men at this price is -3.5.

The price elasticity for women, on the other hand, is -0.8.

This means that the men have a relatively elastic demand for the product. While on the other hand, women have relatively inelastic demand. This implies that if the price is increased the demand from women will not change by a greater proportion.  

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