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xenn [34]
3 years ago
12

TravelEasy Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the

current yield to maturity is 8%, what is the firm's current price per bond?
Business
1 answer:
rosijanka [135]3 years ago
5 0

Answer:

Coupon (R) = 14% x $1,000 = $140

Bond yield (kd) = 8% = 0.08

No of years (n) = 30 years

No of compounding periods (m) = 2

Po= R/m(1-(1+Kd/m)-nm/Kd/m + FV/(1+Kd/m)nm

Po = $140/2<u>(1-(1+0.08/2)</u>-30x2 + 1,000(1+0.08/2)30x2

                         0.08/2

Po = $70<u>(1-(1+0.04)</u>-60 + 1,000/(1 + 0.04)60

                       0.04

Po = $70<u>(1-(1.04)</u>-60 + 1,000/(1.04)60

                 0.04

Po = 70(22.6235) + 95.06

Po = $1,678.71

Explanation:

The price of a bond is equal to the present value of coupon plus the present value of the face value.

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Archy [21]
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3 years ago
Bogart Company is considering two alternatives. Alternative A will have revenues of $146,100 and costs of $104,400. Alternative
irinina [24]

Answer:

Choosing alternative B would increase net income by $17,100

Explanation:

The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:

              Alternative A           Alternative   B     Difference between A&B

Revenues        $146,100            $185,900           $39800

Costs               ($104,400)           ($127,100)        ($22700 )

Net income      $41,700                 $58,800        $17,100

Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100

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3 years ago
Venture Philanthropy Partners focuses on helping youth and children from low-income families in the Washington, D.C., area. What
andriy [413]

The work of Venture Philanthropy Partners in focusing on low-income families would make it a<u> Community Fund </u>

A Community Fund:

  • Focuses on helping a certain need in the society
  • Is usually targeted at the less well off in society

<u>Venture Philanthropy Partners</u> is targeting youth and children that come from lower income families which means that they are targeting the needs of the less well off.

We can therefore conclude that this is a community fund.

<em>Find out more at brainly.com/question/18776651. </em>

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2 years ago
The use of effective contracts with penalties could reduce which form of supply chain risk?
Evgen [1.6K]

The use of effective contracts with penalties could reduce the following forms of supply chain risks:

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<h3>What are supply chain risks?</h3>

Supply chain risk management is "the implementation of strategies to manage routine and non-routine risks in the supply chain to reduce vulnerability and ensure continuity based on ongoing risk assessment".

<h3>What are effective contracts?</h3>

Most contracts only need to contain two elements to be legally effective: the parties must agree (after one party has made an offer and the other has accepted it).

Something of value, such as money, services or goods (or a promise to exchange such goods) must be exchanged for something else of value.

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Full Question

The use of effective contracts with penalties could reduce which form of supply chain​ risk?

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C. Supplier failure to deliver

D. All of the above Question:

7 0
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Government regulations on credit aim to
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Answer:

A. ensure lenders are rapaid.

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