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pychu [463]
3 years ago
9

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1, 2021. The bonds mature o

n December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.
Business
1 answer:
DIA [1.3K]3 years ago
5 0

Answer:

I strongly believe that the requirement is to calculate the price of the bond.

The bond is worth $ 70,824,063.03  

Explanation:

It is noteworthy that a rational would-be investor would pay for a bond a price that reflects the cash flows receivable from the bonds in future discounted to today's terms.              

The future cash flows comprise of the semi-annual coupon interest of $4 million(10%/2 *$80 million) for 20 periods as well as the repayment of the principal $80 million at the end of period 20

Since coupon is paid every six months, the coupon would be twenty times over the life of the bond(paid twice a year for 10 years)        

To bring the cash inflows today's term, we multiply them them by the discounting factor 1/(1+r)^N , where is the yield to maturity of 12% and N is the relevant the cash flow is received.          

The discounting is done in attached spreadsheet leading $ 70,824,063.03 present value today.        

Download xlsx
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The manager believes that an employee should be able to wrap a present within 30 minutes. The employee wraps 1 present every 25
Andreas93 [3]

Answer: 140%

Explanation:

Efficiency refers to how productive a person is in regards to how production they should be.

Formula is:

= Standard time / Actual time * 100%

= 35/25 * 100%

= 140%

3 0
3 years ago
what is crowdsourcing? a. it is the act where a group of people moves from one country to another while looking out for better w
Scrat [10]

Crowdsourcing is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined generally large group of people in the form of an open call.

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4 0
1 year ago
You are a marketing consultant and you have been hired to assist a client in deciding on a target marketing strategy that fits h
seraphim [82]

Answer:

Differentiated

Explanation:

A differentiated marketing strategy is the strategy where the company decided to provide the distinct offering to each kind of market but that should be targeted one. Each segment should be target in the way where the company gives the unique benefits for various kind of segments

Since in the given situation it is mentioned that there is the need to focus more than one market so here it should use the differentiated targeting strategy

5 0
3 years ago
If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit a
Misha Larkins [42]

Answer:

c) $30,600

Explanation:

Bank statement balance = $36,000

Outstanding checks = ($10,000)

Deposit in transit as at month end = $4,000

Erroneous check charged = $600

Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600

                                                             = $30,600

The right option is c) $30,600

3 0
3 years ago
Why is it important to conduct market research on your target audience before building your marketing plan?
Tcecarenko [31]
Conducting market research on your target audience before building a marketing plan allows you to understand your customers/clients and their needs. By completing a marketing plan that includes demographical research as well as spending and purchasing goals and plans, you can understand how to adjust each of the 4 Ps (Price, Place, Promotion, and Product) to create value for your customers and differentiate your product in the marketplace. 
3 0
3 years ago
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