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Vitek1552 [10]
3 years ago
10

Leahy Corp. sells $300,000 of bonds to private investors. The bonds are due in five years, have a 6% coupon rate, and interest i

s paid semiannually. The bonds were sold to yield 4%.What proceeds does Leahy receive from the investors?a. $300,000b. $274,345c. $326,948d. $299,999e. None of the above
Business
1 answer:
emmasim [6.3K]3 years ago
3 0

Answer:

c. $326,948

Explanation:

we must determine the market price of the bonds:

market price = PV of face value + PV of coupons

  • PV of face value = $300,000 / (1 + 2%)¹⁰ = $246,104.49
  • PV of coupons = $9,000 (coupons) x 8.9826 (PV annuity factor 2%, 10 periods) =   $80,843.40

total market price = $326,947.89 ≈ $326,948

since the market rate is lower than the coupon rate, the bonds should be sold at a premium.

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Which of the following requirements must be met for a redemption to be treated as substantially​ disproportionate? A. The shareh
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Answer:

the answer is C

Explanation:

why ? the redemption is used for marketing to define or even to know how in the future your company reach their economic profit levels,and also to the shareholder benefits,  so that's why when the company put on the market the outstanding stock , they decide how many any shareholder could get. they are looking always to increase their own business but if the company say that after redemption you must own less than 80% of his percentage ownership, its not common , nobody could get less even 50% of his own outstanding shares stock.

7 0
2 years ago
Which of the following marketing variables is concerned with hiring and training of an organization's sales force?
enot [183]

Answer: A. Promotion

Explanation: You're promoting an employment opportunity for a job that is about promoting your business

6 0
3 years ago
If bread is produced by using a constant returns to scale production function, then if the: A) number of workers is doubled, twi
nekit [7.7K]

Answer: Option (C) is correct.

Explanation:

Constant returns to scale production function: When there is an increase in inputs (i.e capital and labor) as a result output increases by the same proportion.

For example: If the amounts of equipment and workers are both doubled in the production of bread then as a result the output of bread also doubled.

Suppose the capital and labor increases by 10% then as a result output also increases by 10%.

5 0
3 years ago
If sales volume increases and all other factors remain constant, then the:______.
Montano1993 [528]

If sales volume increases and all other factors remain constant, then the Margin of safety will increase

Explanation:

The margin for safety (MOS) is described as an overall excess of current or expected revenue, expressed either in terms of currency or in units, or as a percentage of total revenues.

One of the main ways to increase the safety margin is through increasing the gross value per unit (if business conditions are favourable) and by reducing the variable cost per unit of the good. This can be accomplished by rising selling costs.

6 0
3 years ago
A set of speakers may be purchased now for $1000 or by making a down payment of $150 and additional payments of $100 at the end
victus00 [196]

Answer:

the nominal annual interest rate on the payment plan is 15%

Explanation:

According to the question, a one-time payment for the speakers will cost $1,000

An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.

Calculating the total payment at tthe end of the payment plan will give

$150 + ($100 x 10months)

we have, $150 + $1,000 = $1,150.

This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.

Step 2:

To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.

$1,150-$1,000 = $150

then we have,

($150 ÷ $1,000) × 100%

= 0.15 × 100%

- 15%

The nominal annual interest rate is 15%.

Cheers.

4 0
3 years ago
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