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
Black_prince [1.1K]
3 years ago
14

Oil Well Supply offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7.73 percent. The bonds matur

e in 9 years. What is the market price per bond if the face value is $1,000?
Business
1 answer:
svp [43]3 years ago
8 0

Answer: <u>The market price per bond is $930,28.</u>

Explanation: First we must calculate the amount of each coupon.

1000 x 7% = 1000 x 0.07 = $ 70 each coupon.

The payments are semiannual and the bond expires in 9 years therefore we have a n = 9 x 2 = 18.

The yield to maturity is 7.73%

And the face value is 1000 $

P0 = ∑\frac{Cup_{t} }{(1+YTM)^{t} } + \frac{Face value}{(1+YTM)^{n} }

Where t is equal to each of the periods of time.

So:

∑\frac{70}{{1+0,0773}^{t}} +\frac{1000}{{1+0,0773}^{18}} = <u>930,28</u>

You might be interested in
You are evaluating your company’s segmentation approach and discover an important missing condition. They have measured their ta
zysi [14]

Answer:

Profitability

Explanation:

It is not enough that our target market is reachable, stable, cost-effective, and measurable. We also need to measure how profitable the market is. We know that our major aim of doing business is to make profit, therefore the profitability of the market must be measured as well.

6 0
3 years ago
Read 2 more answers
Hodor borrowed $1000. The bank charges him 5% interest per year. At the end of year, he paid $50 in interest. There was 2% incre
dem82 [27]

Answer:

5%

Explanation:

nominal interest rate = 5%

real interest rate = nominal interest rate -  increase in GDP deflator (inflation rate) = 5% - 2% = 3%

The nominal interest rate is the interest rate earned or charged without considering the effects of inflation. The real interest rate adjusts the nominal interest rate against the year's inflation rate.

5 0
3 years ago
Vroom-Vroom manufactures miniature cars and has determined that its total manufacturing cost of $1,500,000 is a mixture of unit-
abruzzese [7]

Answer:

$784,434 will be allocated to the Retail division

Explanation:

See attached file

8 0
3 years ago
If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.
Dafna1 [17]

 If the majority of service customers are satisfied, it is likely that all service customers will be satisfied. False

Customer service is the provision of service to customers before, during, and after purchase. This makes it an important part of the customer's value chain. Different industries require different levels of customer service [1], but ultimately, the idea of ​​a well-delivered service is to increase revenue. Awareness of a successful customer service interaction depends on employees who are “adaptive to the customer's personality”. [2] Customer service is often practiced in a way that reflects the company's strategy and values. Good customer service is usually valued by customer loyalty. Customer service is part of a company's intangible assets for some companies and can differentiate them from others in their industry. A great customer service experience can change a customer's overall perception of your company. [3]

Good customer service means consistently meeting customer expectations. Good customer service is fast, easy, personal, and caring. Companies that provide excellent customer service take the time to understand the needs of their unique customer base. J.

Learn more about service customers here

brainly.com/question/1286522

#SPJ4

7 0
2 years ago
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, a
Nikolay [14]

Complete question:

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

a. 150,000

b. 250,000

c. 0

d. 120,000

e. 170,000

Answer:

150,000 of goodwill should be attributed to the non-controlling interest at the date of acquisition

Solution:

A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.

Now , Calculate the amount

Cost(PP) - 1,600/0.8 = 2,000

FV - 1,850

GW = 1,850 - 2,000

     = 150,000

8 0
3 years ago
Other questions:
  • Boulder Furniture has bonds outstanding that mature in 15 years, have a 6 percent coupon, and pay interest annually. These bonds
    14·1 answer
  • In the context of market segmentation, which of the following strategies should be adopted by multinational enterprises to targe
    8·1 answer
  • The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding a
    14·1 answer
  • Additional data: 1. Dividends declared and paid were $25,400. 2. During the year, equipment was sold for $8,700 cash. This equip
    8·1 answer
  • If a producer expected the price of a product to go up ,why would they withhold some of the supply ?Plz Help Me l need ?
    9·1 answer
  • Suppose on any given day there is an excess supply of reserves in the federal funds market. If the Federal Reserve wishes to kee
    7·1 answer
  • You have invested $1,000 in an account that promises APY of 3 percent per year. Assuming you leave the original investment and a
    15·1 answer
  • Lemon company purchased 100 units for $20 each on January 31. It purchased 200 units for $30 each on February 28. It sold 200 un
    11·1 answer
  • You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
    11·1 answer
  • Based on your learning of value chain, business strategy and product / market combinations do you share Dawar’s arguments that m
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!