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
stepan [7]
3 years ago
12

Dufner Co. issued 15-year bonds one year ago at a coupon rate of 7.1 percent. The bonds make semi-annual payments. If the YTM on

these bonds is 5.4 percent, what is the current dollar price assuming a par value of $1,000?
Business
1 answer:
saveliy_v [14]3 years ago
3 0

Answer:

Total $1,173.2544

Explanation:

The price of the bond will be equivalent to the coupon payment and maturity discounted at the YTM

<em><u>Coupon payment PV will be an annuity:</u></em>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 35.50 (1,000 x 7.1% / 2 )

time 30 (15 years x 2 payment per year)

rate 0.027 (YTM /2 )

35.5 \times \frac{1-(1+0.027)^{-30} }{0.027} = PV\\

PV $723.5919

<em><u> The maturity will be the present value of a lump sum</u></em>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   30.00

rate  0.027

\frac{1000}{(1 + 0.027)^{30} } = PV  

PV   449.66

We add bot h to gett the market value

PV c $723.5919

PV m  $449.6625

Total $1,173.2544

You might be interested in
I will give you fifty five point if you make Brainliest me but if you don't and it's just a scam I'm going to report you and the
gulaghasi [49]

Answer:

okay lol

Explanation:

answer my newest question and i'll give it to you <3

5 0
3 years ago
If the goal is to cut the total amount of smoke in half in the neighborhood, what isthe cost-effective way to do this?
Darya [45]

Answer:

He should ask nieghbors to stop

Explanation:

Because asking nice is not a bad reason

4 0
3 years ago
When a vendor credit is recorded by a Quick Books Online user, what are 2 ways to use the vendor credit?
labwork [276]

Answer:

Explanation:

These are the 2 ways to use provider credit:

1. Through linking reimbursement checks in bank deposit. These checks are from the vendor and will be used to create a vendor credit.

2. Making payment of supplier invoices, is another way to use credit, to carry out this, I have to create the invoice.

8 0
3 years ago
Protective covenants: Group of answer choices a.only apply to bonds that have a deferred call provision. b.are primarily designe
tiny-mole [99]

Answer:

B. are primarily designed to protect bondholders

Explanation:

Protective covenants are designed primarily to protect bondholders from future actions of bond issuer. They are also part of a loan agreement that limits certain actions a company may take during the course of the loan to protect the person who lend the money interests. They provide extra protection for the investors. Creditors use it to protect their interests by restricting certain activities of the issuer that could endanger the creditor's interest.

4 0
3 years ago
Read 2 more answers
Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total cur
Oduvanchick [21]

Answer:

Option C: 8.44 times

Explanation:

Quick ratio(also called as acid test ratio) is the indicator of a company's liquidity position at a very short period which only considers the most liquid assets and ignores Inventory & other assets which cannot be realised immediately.

As we know that Quick Ratio = [Current Assets - Inventory - Prepaid Assets] / Current Liabilities

2.00 = $79,000 - Inventory - 0] / $27,650

=> Inventory = $23,700‬

Inventory turnover ratio gives us the number of times the company sells and replaces its inventory during the period.

Annual Sales = $200,000

Inventory Turnover Ratio = Sales / Average Inventory

=> $200,000 / $23,700 => 8.44 times

8 0
3 years ago
Other questions:
  • What are the necessary capital investments for starting a free-range poultry farm?
    12·1 answer
  • Group price discrimination has ________ consumer surplus than under ________.
    14·1 answer
  • What does the Judge usually say when things get crazy in the court room?
    9·2 answers
  • Flounder Corporation is preparing a bank reconciliation and has identified the following potential reconciling items.
    12·1 answer
  • For students not wanting a traditional major in marketing or accounting, for example, YSU decided to create a general business m
    8·1 answer
  • Help
    5·1 answer
  • Kari has been saving money for college for the past four years; she thinks that she is close to her goal amount of $30,000 which
    12·1 answer
  • Which margin size is most appropriate for a business card?
    13·2 answers
  • What is a karst scenery​
    8·1 answer
  • A customer makes a purchase of $22,100 of acme income fund in her margin account. the customer must deposit: _________
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!