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stiv31 [10]
3 years ago
6

A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Ca

lculate the current price of the bond. Group of answer choices $1579.46 $918.89 $789.29 $1000.00 $743.29

Business
1 answer:
Katarina [22]3 years ago
7 0

Answer:

$918.89

Explanation:

For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Future value = $1,000

Rate of interest = 8%  ÷ 2 = 4%

NPER = 5 years × 2 = 10 years

PMT = $1,000 × 6% ÷ 2 = $30

The formula is shown below:

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

So, after applying the above formula, the current price of the bond is $918.89

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This theory views shocks to tastes (workers' willingness to work, for example) and technology (productivity) as the major drivin
katrin2010 [14]

Answer:

The answer to this question is option C  Real Business Cycle theory

Explanation:

The Real business cycle theory is the theory that views hocks to tastes (workers' willingness to work, for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.  

Real business cycle models state that macroeconomic fluctuations in the economy can be largely explained by technological shocks and changes in productivity. These changes in technological growth affect the decisions of firms on investment and workers (labour supply)

Hence the answer is option C  Real Business Cycle theory  

5 0
3 years ago
Under what circumstances, when a searching operation is needed, would sequential search not be appropriate?
rusak2 [61]

Answer:

Variable length and Fixed Length

Explanation:

When data base has a fixed length, then sequential search will not be appropriate. However, when database has a variable length then sequential search becomes appropriate

5 0
3 years ago
Some new-product experts maintain that getting close to customers through intensive research is the only way to develop successf
Elina [12.6K]

The importance of doing customer research is to have a drive for new product development. A research can be effective in pointing out consumer trends and fads, as well as opening a direct customer communication channel that feels prestigious for having its requests valued by a company. Through concrete data of potential customers and new customers, an organization has the ability to meet the actual demand of potential customers and make possible adjustments to the production process.

8 0
3 years ago
2. Buckeye Industries has a bond issue with a face value of $1000. The value of Buckeye’s asset is $1200. In one year they will
Leto [7]

Answer:

Buckeye Industries has a bond issue with a face value of $1000. The value of Buckeye’s asset is $1200. In one year they will be worth either $800 or $1400. The going rate on T-bill is 4 percent. What is the value of debt, equity, and interest rate on debt?

Explanation:

8 0
3 years ago
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th
Sergeu [11.5K]

Answer:

$51.00

Explanation:

Calaulation of Baka Corporation predetermined overhead rate for the year.

Formula for predetermined overhead rate:

Predetermined overhead rate=Estimated overhead÷Estimated direct labor hours

Where,

Estimated overhead= 239,700

Estimated direct labor hours= 4,700

Let plug in the formula

(239,700/4700)

=$51 per direct labor hour

Therefore the predetermined overhead rate for the year was closest to $51 per direct labor hour.

3 0
3 years ago
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