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borishaifa [10]
3 years ago
5

Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the

first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is ___, the coupon rate is ____, and the term of this bond is _____.
A. $400 ; 40%; four years
B. $10,000; 4%; four years
C. $10,000; $400; 4% D. $10,400; 4%; four years
Business
1 answer:
VashaNatasha [74]3 years ago
4 0

Answer: The correct answer is "B. $10,000; 4%; four years".

Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is <u>$10000,</u> the coupon rate is <u>4%,</u> and the term of this bond is <u>four years.</u>

<u></u>

Explanation: The maturity of the bond is at 4 years.

Its future value or face value is 10000.

The coupon rate is equal to \frac{Cupon}{Face value} x 100

So Coupon rate = \frac{400}{10000} x 100 = 4%

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4 years ago
Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expec
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Answer:

Annual depreciation= $7,996

Explanation:

Giving the following information:

Purchase price= $42,000

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5 0
3 years ago
"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde
8_murik_8 [283]

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

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So we substitute  

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cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

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collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

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Cost of equity = 10.7%

6 0
3 years ago
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egoroff_w [7]

Levels of cyclical unemployment will rise.

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<u>Explanation:</u>

In Economics, a recession is a business cycle constriction when there is a general decrease in monetary action. Downturns by and large happen when there is a far reaching drop in spending.

A recession happens when there are at least two back to back quarters of negative monetary development, which means GDP development contracts during a downturn. As organizations battle with less money and income, they first attempt to lessen their expenses by bringing compensation or stopping down to procure new specialists, which can stop business development.

6 0
3 years ago
How the consumer motivated to purchase product. what are the critaria and decision making​
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Answer:

In plain terms, the consumer motivation is the set of cognitive factors driving a customer's determination to make a single sale. The payment is the ultimate product of a "Purchaser's Process" scheme, a three-stage mechanism consisting of:

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