1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Naddik [55]
3 years ago
12

Deltona Motors just issued 230,000 zero-coupon bonds. These bonds mature in 18 years, have a par value of $1,000, and have a yie

ld to maturity of 5.9 percent. What is the approximate total amount of money the company raised from issuing these bonds? Assume semiannual compounding.
Business
1 answer:
Sergeeva-Olga [200]3 years ago
7 0

Answer:

$81,959,737

Explanation:

Zero coupon bond is the bond which does not offer any interest payment. It is issued on deep discount price and Traded in the market on discounted price.

As per given data:

Numbers of Bonds = 230,000

Numbers of years to mature = n = 18 years

Face value = F = 230,000 x $1,000 = $230,000,000

YTM = 5.9%

Value of zero coupon bond = Face value / ( 1 + YTM )^n

Value of zero coupon bond = $230,000,000 / ( 1 + 5.9% )^18

Value of zero coupon bond = $230,000,000 / ( 1 + 5.9% )^18

Value of zero coupon bond = $81,959,737

You might be interested in
The average-marginal rule states: a. when the marginal magnitude is rising, the average magnitude must also be rising. b. when t
lozanna [386]

Answer:

The correct answer is letter "C": when the marginal magnitude is below the average magnitude, the average magnitude falls.

Explanation:

The average-marginal value is an Arithmetic rule implemented in Economics that states that when the marginal value is above the average value, the average value tends to rise, In case the marginal value is below the average value, the average value tends to fall. The average value remains the same when it is equal to the marginal value.

5 0
3 years ago
When the economy is doing badly, which of the following workers is NOT likely to have fewer customers or patients who want their
Vladimir [108]
A nurse because while the economy is doing bad the nurse will always have patient 
8 0
3 years ago
Read 2 more answers
Use the three-step demand-supply analysis discussed in class to analyze changes to the equilibrium price, and quantity in the ca
Ghella [55]

A new computer chip affects the supply curve only.

Demand-supply is an economic version of price determination in a market. It postulates that preserving all else identical, in an aggressive market, the unit price for a specific appropriate, or other traded item which includes hard work or liquid financial property, will range till it settles at a point in which the quantity demanded (at the modern price) will same the quantity supplied (on the modern-day price), ensuing in an economic equilibrium for rate and quantity transacted.

Equilibrium is a scenario wherein economic forces consisting of delivery and demand are balanced and in the absence of outside impacts the values of economic variables will no longer alternate.

Philosophical analysis is any of various techniques, typically used by philosophers in the analytic culture, to be able to "damage down" philosophical problems. Arguably the maximum prominent of those techniques is the evaluation of concepts.

Learn more about Demand-supply here: brainly.com/question/4804206

#SPJ4

7 0
2 years ago
Society suffers a deadweight loss in a pure-monopoly market because
nekit [7.7K]
A pure-monoply means that a company does not have to compete with other producers within the market. Since they aren't competing with a good or service, they aren't competing with each others customers either. When a company does not have to compete on price/customers they may end up being greedy and have market failure. 
8 0
3 years ago
Arthur is a truck driver who owns his own business. He has been on the road for several months, and the constant wear and tear o
uranmaximum [27]

Answer:

<u>Letter B is correct</u>. Will be reduced.

Explanation:

In this case, Arthur's taxes will be reduced. This situation happens according to some legal criteria. Arthur is a sole proprietor of his business, and since he has had significant losses tied to his business, he has the right to reduce personal expenses on such losses by subtracting this cost from his tax obligations.

5 0
3 years ago
Other questions:
  • Horrified at the high price for the flu vaccine decides to set a price ceiling at $60.what are the results of this ceiling
    7·1 answer
  • The risk-free rate of return is 3% and the expected return on the market portfolio is 14%. Oklahoma Oilco has a beta of 2.0 and
    6·1 answer
  • an economy where more money is being collected than is being allocated or spent is known as what type of economic stance
    15·2 answers
  • Miel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 16 ounces of rolled oats per carton (the unit quant
    13·1 answer
  • Forward contracts a. have a high liquidity risk related to immediate cash access to pay for possible losses. b. are less standar
    13·1 answer
  • A movie theater finds that when it prices tickets at ​$9​, the theater sells 250 per day. When the price is reduced to ​$8​, the
    7·1 answer
  • In august, Johns Co.’s account receivable balance was written off using the direct method. In November, Johns pays the balance i
    13·1 answer
  • Which item is a biological contaminant?
    14·2 answers
  • Which of the following statements comparing debit and credit cards is TRUE?
    5·1 answer
  • Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery ba
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!