1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Slav-nsk [51]
3 years ago
9

Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 year

s. The bond makes no payments for the first six years, then pays $1,100 every six months over the subsequent eight years, and finally pays $1,400 every six months over the last six years. Bond N also has a face value of $20,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 6 percent compounded semiannually. What is the current price of bond M and bond N?
Business
1 answer:
Margarita [4]3 years ago
5 0

Answer:

Bond M= $21,914.32.

Bond N= $6,131.14

Explanation:The price of any bond (or financial instrument) is the PV of the future cash flows. Even though Bond M makes different coupons payments,to find the price of the bond,we just find PV for the cash flows

You might be interested in
Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon
AfilCa [17]

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

8 0
4 years ago
Explain (with theories support) the elements that can affect an individual behavior
Fynjy0 [20]

Answer:

wow who has theory support THAT MENAS YOU HAVE wow but none of them has it

8 0
3 years ago
Read 2 more answers
When an investor is not interested in owning their own business, why do they need to understand entrepreneurship?
Dominik [7]

Answer:

To assess the market potential for up-and-coming businesses

Explanation:

Knowledge in entrepreneurship will give you to ability to understand a couple of things:

- The types of products that currently desired by the market.

- The strength and weaknesses of several business models

- The knowledge on how to scale business operations

Even though investors do not own their own business, understanding all this will help them understand which companies are most likely to succeed. They can put their investments on those companies and maximize the amount of return that they can get from their investment.

4 0
3 years ago
An inmate escapes from the county prison. There is a $500 reward offered for any information leading to the capture of the inmat
Hitman42 [59]

Answer:

B) cannot expect to collect the $500 because he had a preexisting duty to arrest the inmate.

Explanation:

Law enforcement officers cannot collect rewards or bounties on escaped prisoners or wanted criminals.

One of the roles and duties of law enforcement officers is to arrest criminals (either escaped or suspected), and they cannot collect a reward for doing their job.

6 0
4 years ago
Communication response time must be faster than in the past to succeed in the modern workplace. please select the best answer fr
svp [43]

Based on current workplace trends, a faster communication time is needed to succeed so this is True.

<h3>What does the modern workplace require?</h3>

The modern workplace is characterized by faster processes and the need to stay ahead of competitors.

As a result, it is required that communication response times should be faster in order to be successful.

Find out more on communication response times at brainly.com/question/25793182.

#SPJ4

5 0
2 years ago
Other questions:
  • Surreal Corp. has borrowed to invest in a project. The loan calls for a payment of $17,500 every month for three years. The lend
    13·1 answer
  • Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion co
    15·1 answer
  • Equity securities in which the investor owns less than​ 20% ownership in the voting stock of the investee generally can be class
    15·1 answer
  • Tiara Inc., an international clothing brand, recruited 15 people as managers. They all took a test as part of the recruitnont pr
    13·1 answer
  • Choose the best response for each of the following statements. a. When the Federal Reserve makes an open market purchase, the Fe
    11·1 answer
  • How do performance standards best promote ethical behavior?
    12·1 answer
  • Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $19 million, and production
    11·1 answer
  • After its success in Japan, Starbucks worked with local operators, collecting initial fees and then royalties on store revenues
    9·1 answer
  • New technologies are allowing more women and young people to start businesses. This is mainly because
    13·1 answer
  • Matador company purchases $1,300 of equipment from danger mouse inc. For cash the effect on the components of the basic accounti
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!