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
9966 [12]
3 years ago
15

There are zero coupon bonds outstanding that have a YTM of 6.27 percent and mature in 14 years. The bonds have a par value of $1

0,000. If we assume semiannual compounding, what is the price of the bonds?
Business
1 answer:
marysya [2.9K]3 years ago
3 0

Answer:

Price of the Bond is  $4,268.26

Explanation:

The price of the bonds can be obtained using a Financial calculator by entering the data as follows :

r = 6.27%

Pmt = $0

n = 14

Fv = $10,000

Pv = ? Price of the Bond

Therefore,  Pv, Price of the Bond is $4,268.2561.

Thus Price of the Bond is  $4,268.26 ( 2 decimal places).

You might be interested in
A company's issued share capital throughout an accounting period consists of 500,000 common shares of 20 cent each and 100,000 p
ella [17]

Answer:

a. $0.30

Explanation:

Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.

Earnings Attributable to Holders of Common Stock calculation :

Net income after tax for the period                            $160,000

Less Preference Dividend                                           ($10,000)

Earnings Attributable to Holders of Common Stock $150,000

Weighted Average Number of Common Stock calculation :

Outstanding common shares                                      500,000

Therefore,

Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000

                                                     = $0.30

7 0
3 years ago
The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the m
Gekata [30.6K]
<h2>10 workers would cause the marginal  to exceed the marginal benefits.</h2>

Explanation:

  • Let us understand the term "Marginal benefits".
  • It is the additional amount that the consumer "willing to pay" for an additional goods or a service.
  • In terms of producers, the marginal benefit is termed as marginal revenue.
  • Here according to the situation given in the question as to how many workers to hire could be answered by the number 10.
  • Marginal revenue always falls below marginal cost.
  • It is the revenue that the organization receives for selling one additional unit.
8 0
3 years ago
Read 2 more answers
What factors will determine the sizes of the​ shortages? The extent of the excess demand implied by the shortages will depend on
Juliette [100K]

Answer:

The answer is: C) the elasticity of​ demand, where the shortages will be larger if demand is more inelastic.

Explanation:

When the demand for a product is completely inelastic it means that the quantity demanded for that product will be the same whether its price increases or decreases. Rarely any product is completely inelastic, but inelasticity shows a tendency of buyers to keep buying a product even if its price rises, for example gasoline.

Inelastic products don´t follow the law of supply and demand, since the price doesn´t alter the demand.

If suppliers can produce enough goods (product shortages) and the quantity demanded stays the same, the price will rise. But if the demand for the product is inelastic then the shortage will get worse since every time more people will want to buy the product and their will be less product to buy.

6 0
3 years ago
When putting together your personal budget, you find that your budget has a deficit. Which is the BEST way to balance your budge
ki77a [65]

Answer:

The correct answer is letter "C": Cut your expenses by an amount greater than your deficit.

Explanation:

In case there is a deficit in your budget, it means your expenses are higher than your net income. An adjustment must be made in such circumstances. To bring back the balance in your budget, <em>you should cut your expenses by an amount higher than the amount of the deficit</em>. Otherwise, you could increase your income but keeping your expenses at the same level.

3 0
3 years ago
Among the challenges facing those who practice the medical model today are cure versus control, the development of new drugs and
slava [35]
<span>Among the challenges facing those who practice the medical model today are cure versus control, the development of new drugs and <span><span><u>the control of medical services.</u>
</span></span>According to the definition, the medical model is "</span><span>a term in psychology, indicating the assumption that abnormal behavior is the result of physical problems and should be treated medically."</span><span>
</span>
6 0
3 years ago
Other questions:
  • What unique feature do savings bonds have?
    6·2 answers
  • In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies his belief that all persons have fun
    5·1 answer
  • _____ are examples of selling raw materials.
    6·2 answers
  • Sandhill Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $
    6·1 answer
  • The measurement of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goal
    12·1 answer
  • Using a neoclassical model, what will the level of cyclical unemployment be when an economy is producing at potential GDP?
    13·1 answer
  • Tyler Smith has gone to the career placement center at his university. He has taken both an interests inventory and a personalit
    7·1 answer
  • Which statement is correct? a. Producers are "Kings" in a market economy because they determine what is produced. b. Freedom of
    9·1 answer
  • You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a pri
    9·1 answer
  • Which two actions will help you get the most benefit from an informational interview
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!