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yanalaym [24]
2 years ago
8

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

l coupon payments. Suppose a German company issues a bond with a par value of ? 1000, 25 years to maturity, and a coupon rate of 6.4 percent paid annually. If the yield to maturity is 7.5 percent, what is the current price of the bond?

Business
1 answer:
Fantom [35]2 years ago
3 0

Answer:

Bond Price = $877.3835955 rounded off to $877.380

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.064 * 1000 = $64

Total periods (n)= 25

r or YTM = 7.5% or 0.075

The formula to calculate the price of the bonds today is attached.

Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075]  +  1000 / (1+0.075)^25

Bond Price = $877.3835955 rounded off to $877.380

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Aimee is a salaried nonexempt employee who earns an annual salary of $56,000 for a 43-hour workweek, paid biweekly. The employer
Alika [10]

Answer:

the compensatory time that would be received is 13.5 hours

Explanation:

The computation of the compensatory time that would be received is as follows:

Actual hours worked 95

Less: Regular working hours 86 (43 hours × 2)

Overtime hours worked 9

Now

Compensatory time 13.5 (9 hours × 1.5)

Hence, the compensatory time that would be received is 13.5 hours

7 0
3 years ago
Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses
MrRissso [65]

Answer: limited partnership

Explanation:

A limited partnership simply means a form of partnership whereby some of the partners only contribute financially nd thus will be liable and only to the extent of the amount that they contribute to the partnership m.

In case the company goes into bankruptcy, their personal assets and properties won't be affected. Since Thom invited his parents to invest $40,000 in the enterprise and told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment, then this is a limited partnership.

8 0
2 years ago
The Federal Reserve System a.) was established and is now controlled by congress b.) was established by congress but is now inde
alexgriva [62]

Answer:

b.) was established by congress but is now independent of it

Explanation:

It was founded on december of 1913 by the congress of the United State of America.  to help the nation on the monetary and financial of the country.

It is considered independent of the congress because, it doesn't require his approval to conduct their policies.

3 0
3 years ago
How do population affect the government critically
EastWind [94]

Answer:

Rapid population growth strains political institutions and increases pressure on services.

Explanation:

8 0
2 years ago
A 16-ounce bottle of Prairie Herb vinegar sells for $4.95, and a 16-ounce bottle of Heinz vinegar costs $1.05. Prairie Herb vine
Svetlanka [38]

Answer:

Price Skimming

Explanation:

Price skimming: It is a pricing strategy of a firm that allow firm to use higher price of a product initially, however, firm reduce the price over the period of time to gain more marketshare by penetrating the product into different segment, which are price sensetive segment. Higher price at the beginning help the firm to gain more profit to cover most of the cost as demand is high at the beginning due to brand value and buzz created by the firm before launching the product in the market.

In the given case, Prairie herb vinegar have sold the 16-ounce bottle at higher price than Heinz Vinegar, however, they are used in the same way, as Prairie Herb vinegar is new to the market, perceived to be of higher quality, and provides a unique flavor to foods, which is a example of price skimming.

4 0
3 years ago
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