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elixir [45]
3 years ago
8

Wine and Roses, Inc. offers a 6.0 percent coupon bond with semiannual payments and a yield to maturity of 6.91 percent. The bond

s mature in 12 years. What is the market price of a $1,000 face value bond?
$1,410.62
$1,442.55
$926.59
$1,023.89
$1,484.04
Business
1 answer:
Gemiola [76]3 years ago
3 0

Answer:

$926.59

Explanation:

C =Annual coupon Payment = $1,000 x 6% = $60

YTM = 6.91% = 0.0691

t = Number of year = 12 years

m = number of period in one year = semiannual = 2

Face value = $1,000

Bond's Market Price = (C / YTM)x[1 - ( 1 + YTM/m )^-tm] + [ FV x ( 1 + YTM/m)^-tm]

Bond's Market Price = (60 / 0.0691)x[1 - ( 1 + 0.0691/2 )^-12x2] + [ $1,000 x ( 1 + 0.0691/2)^-12x2]

Bond's Market Price = $868.31 x [1 - ( 1.03455 )^-24] + [ $1,000 x (1.03455)^-24]

Bond's Market Price = $484.04 + 442.55 = $926.59

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Answer: Corporate Cultural Responsibility.

Explanation:

The corporate cultural responsibility of a company are the standards members of the society have come to expect from the company based on the previous ways their members of staff have been seen to operate. Corporate Cultural responsibility can be seen in staff dress-code and work style.

6 0
3 years ago
True or false: the term economic investment includes purchasing stocks, bonds, and real estate.
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In 2002, a Swedish home electrical appliance manufacturer decided to use the same advertising message wherever it advertised aro
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Answer:

Global advertising

Explanation:

Global advertising -

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7 0
3 years ago
Budget deficit singapore for 5 year
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6 0
2 years ago
Michael Company reports the following account balances at the end of the first year of​ operations: Revenues $ 160 comma 000 Cos
professor190 [17]

Answer:

$46,000

Explanation:

The computation of the total liabilities at the end of the first​ year is shown below:

We know that

Total assets = Total liabilities + stockholder equity

where,

Total assets = Cash + land + short term investment

                    = $102,000 + $40,000 + $14,000

                    = $156,000

Stockholder equity = Common stock + net income - dividend paid

                                = $50,000 + 72,000 - $12,000

                                = $110,000

So, the total liabilities would be

= $156,000 - $110,000

= $46,000

Working Note:

The net income is

= Revenue - cost of goods sold - Salaries Expense -  Utilities Expense - Advertising Expense ​

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