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
Which describes risk aversion?
Savatey [412]
Risk aversion is the behavior in someone when they are exposed to uncertainty and are unsure of something due to being uncertain about it.  

In this case, reluctant for taking changes when making investment best describes risk aversion from an economics stand point. If someone isn't sure the return on investment they would get from investing or the risks associated with investing in something, they are more hesitant to do that. 
4 0
3 years ago
Read 2 more answers
Open-end mutual funds are more common than closed-end funds. question 5 options:
Tems11 [23]
False. They are, in fact, significantly less common.
4 0
3 years ago
Economic activities that involve the extraction of natural resources, such as lumbering, fishing, mining, and agriculture, are c
ASHA 777 [7]
Activities that do that are called adolescent
3 0
2 years ago
Read 2 more answers
Phone calls are:________.
Y_Kistochka [10]

Answer:

The correct answer is letter "C": capable of offering the give-and-take of in-person conversations.

Explanation:

While talking about channels of communication, phone calls are useful to imitate the closest possible to face-to-face communication, with its limitations. The transmission of information is done in real-time and the participants can provide their points of view just as if they were talking in person.  

Though, expressions cannot be captured. Many people over the phone can pretend to have a mood modulating their tone of voice even if their feelings are opposite.

8 0
3 years ago
Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciat
madreJ [45]

Answer: Fixed Indirect costs.

Explanation:

Depreciation cost is the amount of a fixed asset that has been charged to expense through a periodic depreciation charge. Depreciation can either be a direct cost which is one that varies in concert with changes in a related activity while

an indirect cost is one that is not directly associated with an activity.

The determination of depreciation as a direct or indirect cost depends upon what it is associated with. For example carpet cleaning is an Indirect costs because it's precise benefits to a specific project is difficult or impossible to trace Also,since depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset then cost of the depreciation on the carpet cleaning is a Fixed Indirect Cost.

8 0
3 years ago
Other questions:
  • If the supply function for a commodity is p = q2 + 6q + 16 and the demand function is p = −7q2 + 2q + 436, find the equilibrium
    11·1 answer
  • Under the allowance method, bad debts expense is recorded with an adjustment at the end of each accounting period that debits th
    6·1 answer
  • The merger between two general merchandise stores Sears and K-Mart who each carried some specialty items will most likely produc
    14·1 answer
  • Analyze fraternal polyandry in Himalayan south-central Asia with respect to material conditions. What specific problems are pose
    10·1 answer
  • The minimum salary for a running back is $1.35 million per year. One of the Whalers' running backs was hurt during the last game
    15·1 answer
  • Your friend says to you, "America is one of the fairest countries in the world because we have a democracy, and we are able to v
    13·1 answer
  • As the chief financial officer (CFO), you identify that your firm needs to raise additional funds by selling new shares of stock
    7·1 answer
  • Once we enter the region of diminishing returns,
    9·1 answer
  • Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $83,000 from his employer and won $
    9·1 answer
  • Which of the folloiwng is an example of direct finance?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!