Answer:
Market value of bond = 841.14
Explanation:
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate.
Value of Bond = PV of interest + PV of RV
The value of bond can be worked out as follows:
Step 1
Calculate the PV of interest payments
Semi annual interest payment
= 10% × 1,000× 1/2 = 50
PV of interest payment
A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 14%/2 = 7%
n- 6× 2 = 12
= 50× (1-(1.07^(-12)/0.07
= 397.13
Step 2
PV of redemption Value
PV = $1000 × (1.07)^(-12)
= 444.011
Step 3
Price of bond
= 397.13
+444.01
=841.14
Market value of bond = 841.14
Answer:
The best example I can think of that would integrate all of these concepts is when a business is looking to finance some sort of project and they are seeking financing either through the issuance of bonds or a loan from a bank. Some of the concepts would be important to both parties, while others would be more important to one than the other.
Cash Flow
This would be important to both parties. The business, to make sure they have enough cash flow to pay for the financing. And the financiers, for the same reason.
Ratio Analysis
This would be important to both parties for the same reason as above. Especially the "current ratio" (current assets / current liabilities) and the "working capital" ratio (current assets - current liabilities).
Financial Statements
This would be of most importance to the financiers. They would want to see the total picture of a company's financial strength.
Time Value of Money
This would be of most importance to the company itself. They would want to know if the project was worth the total amount they would be paying on the bonds or the loan
People often have different suggestions and may or may not agree with each other. Due to groupthink, Amaya did not voice her concern as she did not want to appear unsupportive of the team.
- Groupthink is known to be a situation that takes place when a group of individuals arrive at a consensus without critical reasoning or looking into the repercussions or alternatives.
It is often based on a common desire not to anger the balance of a group of people.
It can also be regarded as a psychological phenomenon where individual strive to meet a consensus within a group.
Learn more about Groupthink from
brainly.com/question/10206116
Answer:
Economic systems as a type of social system must confront and solve the three fundamental economic problems: What kinds and quantities of goods shall be produced, "how much and which of alternative goods and services shall be produced?" How shall goods be produced? ..by whom and with what resources
Answer:
true
Explanation:
inflation effects every aspect of the economy
