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LUCKY_DIMON [66]
3 years ago
7

A 1000 par value 5-year bond with 8.0% semiannual coupons was bought to yield 7.5% convertible semiannually. Determine the amoun

t of premium amortized in the 6th coupon payment.

Business
1 answer:
shutvik [7]3 years ago
5 0

Answer:

$2.08

Explanation:

For computing the amount of premium amortized in the 6 coupon payment first we have to need to find out the present value which is shown below:

Given that

NPER = 5 × 2 years

RATE = 7.5 ÷ 2 = 3.75%

PMT = $1,000 × 8% ÷ 2 =  $40

Future value = $1,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $1,020.53

Now the amount of premium is determined by preparing the amortization schedule i.e to be shown in the attachment

Interest = beginning value × rate

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Because she possesses these technical skills, Elizabeth can be considered a <u>"knowledge"</u> worker.


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7 0
3 years ago
Alby Ltd. is a cement manufacturing plant. Alby calculates the NPV of buying a new cement mixer. He turns down the capital inves
saw5 [17]

NPV stands for net present value, which refers to the amount of money that is invested today and how much it could potentially be worth in the future. If Alby Ldt. decided they did not want to invest after calculating the potential NPV, it's likely that the future value of the purchase would not be worth the investment.

5 0
3 years ago
Suppose that you are in charge of an insurance company. Two kinds of people want insurance, healthy people who probably will not
mote1985 [20]

The equilibrium premium, which balances the premiums charged to healthy and unhealthy people, charged for insurance under this scenario is <em>e. You charge $3,000 and everyone buys insurance.</em>

$3,000 will be affordable to both the healthy and the unhealthy.  This amount of premium will enable both classes to buy insurance.

It will <em>not benefit</em> the company to charge:

  • $2,000 and enable everyone to buy insurance
  • $3,000 and enable only unhealthy people to get insurance
  • $1,000 so that only the healthy people to buy insurance
  • $1,000 because only healthy people buy insurance.

Thus, the insurance premium charged should be <em>Option E.</em>

Learn more: brainly.com/question/9696972

4 0
2 years ago
Una librería puede comprar de la editorial un atlas a un costo de $10 por ejemplar, se estima que si vende el atlas a "p" dólare
LiRa [457]

Answer:

Tenemos un costo de $10 por unidad

C = $10/u

Tenemos un precio de venta de "p" dólares por unidad

V = P/u

Y tenemos una cantidad de unidades vendidas de 20(22-p)

Q = 20(22-p)

Halle la utilidad U(p) como una función del precio de venta "p".

Utilidad(p) = C*Q - V*Q

C*Q equivale a costo total, y V*Q equivale a ingreso total, así obtenemos la utilidad.

¿Cuál es el precio de venta "p" que genera una utilidad máxima?

$16/ unidad

¿Cuál es el precio de venta "p" que genera una utilidad nula?

$720/ mes

7 0
3 years ago
when comparing two alternative concepts to provide needed warfighting capabilities you discover that the life cycle cost of both
Kipish [7]

Answer:

Alternative 1

Explanation:

We will choose the alternative one because it takes only five years to demonstrate the draft capability development document, and it uses advanced technology demonstrations. On the other hand, we can not choose alternative two because it will take three more years from alternative one to demonstrate the draft CDD.

7 0
4 years ago
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