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trasher [3.6K]
3 years ago
10

You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quo

ted annual interest rate of 10 percent, which is paid semiannually. The yield to maturity on the bonds is 8 percent annual interest. There are 10 years to maturity. Compute the price of the bonds based on semiannual analysis.
Business
1 answer:
Gekata [30.6K]3 years ago
8 0

Answer:

current market price of the bond is $667

Explanation:

the formula to calculate yield to maturity (YTM) is:

YTM = [C + (F - P)/n] / [(F + P)/2]          

  • F = face value
  • P = market price
  • n = number of years x 2 =
  • C = coupon      

we just start replacing and solve for P:

  • YTM = 8%
  • C = 50
  • F = 1,000
  • n = 20

8% = [50 + (1,000 - P)/20] / [(1,000 + P)/2]

8% x (1,000 + P)/2 = 50 + (1,000 - P)/20

8% x (500 + 0.5P) = 50 + 50 - 0.05P

40 + 0.04P = 100 - 0.05P

0.04P + 0.05P = 100 - 40 = 60

0.09P = 60

P = 60 / 0.09 = 667

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Answer:

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Explanation:

Open-book management

This is simply the act of sharing with employees at all levels of an organization some vital information that is somehow or previously meant for too management staff only. It also involves opening a company's financial statements to all employees and giving them the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.

Boundaryless organization

This is simply known as a form of organization structure in which there are no barriers to information flow. Boundaryless designs include barrier-free, modular and virtual organizations. An organization without barriers has permeable internal and external boundaries and requires higher level of trust and shared interests, a shift in philosophy from executive development to organizational development, greater use of teams etc.

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3 years ago
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
Mekhanik [1.2K]

Answer: 10%

Explanation:

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5 0
3 years ago
If an oil company wants to drill on public land, from whom would it secure the driling lease? a. comptroller of public accounts
podryga [215]

Answer:

b. commissioner of the General Land Office 

Explanation:

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I hope my answer helps you.

6 0
3 years ago
Read 2 more answers
Without permission, a russian firm names itself mcdonald's and begins selling hamburgers and french fries in russia
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Answer:

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EU conversion: 412,632

Explanation:

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Materials:

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ending WIP inventory

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Equivalent untis materials:  434.040‬

Conversion:

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Equivalent untis conversion: 412,632

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3 years ago
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