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Angelina_Jolie [31]
3 years ago
12

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual

interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point as described below:
Real Rate of Return 4%Infaltion Premium 6Risk Premium 5Total return..........15%Assume that five years later the inflation premium is only 3 percent and is appropriately refelcted in the required return (or yield to maturity) of the bonds. The bonds have 20 years remaining until maturity. Compute the new price of the bond.
Business
1 answer:
Dmitrij [34]3 years ago
4 0

<u>Solution and Explanation:</u>

Required Return after 5 year =  Real rate of return +   Inflation premium + Risk premium

Required Return after 5 year = 5+2+4

Required Return after 5 year =11%

No of year left to maturity = 25

Annual Interest payment = 15%*1000 = 150

Face value of Bond = 1000

New price of the bond = pv (rate, nper, pmt, fv)

New price of the bond = pv (11%,25,150,1000)

New price of the bond = $ 1336.87

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It is true that the qualities needed for effective leadership are the same as those needed to be an effective follower.

<h3>Who is a leader?</h3>

A leader is someone who gets things done through others. A leader rely on his or her followers to be able to achieve an organizational' s goals and objectives.

For a leader to be able to deliver effectively, he or she must have followers who have similar goals and must be effective as well.

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Management at WorkNewspapers are under tremendous pressure to stay relevant as people increasingly turn to the Internet for news
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Answer:

B. Subscribers cancelling their subscriptions

Explanation:

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3 years ago
Nash's Trading Post, LLC had an increase in inventory of $88800. The cost of goods sold was $414400. There was a $22200 decrease
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Answer: $525,400

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From the question, we are informed that Nash's Trading Post, LLC had an increase in inventory of $88800, the cost of goods sold was $414400 and that there was a $22200 decrease in accounts payable from the prior period.

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hodyreva [135]

Answer:

 Strategy of company concerns are explained as the action plan management,and organisational objectives.

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A.  A more appealing product needs to be offered to rivals for new product.

B. planning of money.

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D. The company should pursue, the long-term direction management.

E. conservative defense to project

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A.  role out a market position,  to attract and satisfy customers, successfully,

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Answer:

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