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lozanna [386]
3 years ago
9

Bond Terms 8%, 20-year bond, Face Value: $500,000 Interest Payment dates, June 30 and December 31 Bond issued on 1/1/2020 Under

each of the following three scenarios, CALCULATE a) Cash received at issuance b) The amount of the interest payment ) The total interest expense on the bond d)The total amount repaid at maturity Scenarios: 1) Bond issued at face 2) Bond issued at 97.25 3) Bond issued at 102.5
Business
1 answer:
gregori [183]3 years ago
7 0

Answer:

1. Bond issue at 97.25

a. cash received =  97.25% * $500,000 = $486,250

b. Amount of interest payment =  8%*$500,000* 1/2 =  $20,000

c. total Interest payment  =  $20,000 *2*20 = $800,000

d. Total amount repaid at maturity = $500,000

2. Bond issue at 102.5

a. cash received  =  102.5%*$500,000 = $512,500

b. Amount of interst payment = 8%*$500,00 * 1/2  = $20,000

c. Total amount of interest payment = $20,000*2*20 = $800,000

d. Total amoun repaid at matrurity = $500,000

Explanation:

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4 years ago
Today, the spot price of the EUR/USD exchange rate is $1.0796. The bid and ask quotes for the six-month EUR/USD forward contract
pantera1 [17]

Answer:

b. 13.63%

Explanation:

Multiple choice <em>"(a) 1.01% (b) 1.37% (c) 0.50% (d) -0.50%"</em>

<em />

Spot rate = future rate /(1 + interest rate differential)

1.0796 = (1.0796 + 0.007356)/(1 + interest rate differential)

1.0796 = 1.086956 / (1 + interest rate differential)

1.0796 * (1 + interest rate differential) = 1.086956

(1 + interest rate differential) = 1.086956/1.0796

(1 + interest rate differential) = 1.006813634679511

Interest rate differential = 1.006813634679511 - 1

Interest rate differential = 0.006813634679511

interest rate differential = 0.006813634679511*2

interest rate differential = 0.013627269359022

interest rate differential = 13.63%

So, the difference between interest rate of Europe and US is 13.63%.

6 0
3 years ago
For commodity X, average cost is equal to marginal cost at every level of output. Assuming that the market for X is competitive
yuradex [85]

Answer:

2 3 For commodity X average cost is equal to marginal cost at every level of from ... curve is linear, analyze the effects when a unit tax of u dollars is imposed. Now analyze the effects of the same tax assuming that the market for X is a monopoly. ... Suppose that the demand curve is (where is the number of gallons of liquor ...

Explanation:

7 0
3 years ago
When income increases from $2800 to $3600 per month, quantity demanded of Good G decreases from 1,200 units to 800 units. What i
Paladinen [302]

Answer:

The income elasticity of demand for Good G is 1.17

Explanation:

Income elasticity of demand = % change in quantity demanded ÷ % change in income

% change in quantity demanded = (1200-800)/1200 × 100 = 400/1200 × 100 = 33.33%

% change in income = (3600-2800)/2800 × 100 = 800/2800 × 100 = 28.57%

Income elasticity of demand for Good G = 33.33% ÷ 28.57% = 1.17

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3 years ago
When actions by individuals in a organization are directed toward the goal of furthering their own self-interests, it is termed
STALIN [3.7K]

Answer:

Organizational politics.

Explanation:

An interest group can be defined as a group of people sharing common aims, ideas and concerns, which seeks to influence government or a public policy.

This ultimately implies that, the interest groups consists of individuals who are only concerned about influencing public policy of the government on the basis of a particular common aim and interest.

Similarly, when actions by individuals in a organization are directed toward the goal of furthering their own self-interests such as being promoted, traveling to get estacodes, training, courses, etc., it is generally termed as organizational politics. Thus, you will see such employees (individuals) getting closer to top the executive management and patronizing them, in order to be in their good books.

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