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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>

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You’re a broker writing an mls policy for your firm. which would you likely want to include?
Svetradugi [14.3K]

You’re a broker writing an MLS policy for your firm.  When and if listing data should be submitted to you for approval, want to include it.

Some listing services offer more exposure to resellers and more options for agents to represent buyers. In return, both brokers receive a sales commission.MLS regulations permit MLS data to be made available to MLS on additional Her websites unless otherwise directed by MLS's administrator.

MLS enables agents and brokers within a particular market to exchange information about real estate listings. It's useful for home sellers because it helps expose properties to a wider audience.

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5 0
1 year ago
X-treme Vitamin Company is considering two investments, both of which cost $10,000. The cash flows are as follows:Year Project A
liq [111]

Answer:

A) Project A = 0.83 year

B) NPV of Project B = $14,609.66

C) Answer B

Explanation:

Requirement A

We know,

Payback period = Last year with negative cumulative cash flows + (Absolute value of last year's cumulative cash flow ÷ Cash flow of the following year's negative cumulative cash flow)

Or, Payback period = A + ( B ÷ C)

                             Project A                                       Project B

Year   Cash Flow   Cumulative Cash Flow    Cash Flow  Cumulative Cash Flow

0 (A)   -$10,000      -$10,000 (B)                     -$10,000        -$10,000 (B)

1           $12,000 (C)      2,000                           $10,000(C)                 0

2              8,000         10,000                               6,000             6,000

3              6,000         16,000                              16,000           22,000

Payback period for project A = 0 + ($10,000 ÷ 12,000) = 0 + 0.833 = 0.83 year

Payback period for project B = 0 + ($10,000 ÷ 10,000) = 0 + 1 = 1 year

X-treme Vitamin Company should choose project A because it can return the investment earlier than project B.

Requirement B

We can use excel to find the Net Present Value for both the projects with a cost of capital of 10%.

The following image shows the NPV for project A and B.

From the calculation of NPV, X-treme Vitamin Company should choose project B as that project yields more present cash flows.

Requirement C

A firm should generally have more confidence in answer b because money can produce more logical sense than a year. Yes, it is easy to understand how many years a company will need to get back its cash flow. Still, the present value of cash flows provides a more specific evaluation of how to utilize the initial investment.

8 0
3 years ago
at a world price of $5 with free and open trade, country b must import calculators. if country a has a domestic quantity demande
jeka57 [31]

In the given case, when if country b has a domestic quantity demand of 55 calculators and a domestic supply of 60 calculators country b is likely to import 5 calculators.

<h3>What are import and export?</h3>

Exports are items that are sent to be sold in other nations, whereas imports are things that are bought from other nations owing to a lack of resources or lack of understanding of how they were made.

In the given case, if country a has a domestic quantity demanded of 55 calculators and a domestic supply of 60 calculators, they have the remaining 5 calculators which they are most likely to import after fulfilling domestic needs.

Learn more about import  and export, here:

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3 0
1 year ago
Google's mission statement is "to organize the world's information and make it universally accessible and useful."
Marina CMI [18]
I believe it is c . sorry if incorrect
8 0
3 years ago
The growth rate is a measure of the rate at which a countrya's population is increasing. Please select the best answer from the
Bond [772]

The growth rate is a measure of the rate at which a country's population is increasing.

The growth rate of a population measures the percentage increase in the value of a quantity.

For example, if the growth rate of a population is 10%, if the town currently has 1000 people, next year population would be: 1000(1.1) = 1100 people.

Factors that leads to increases in a population

  • Migration
  • Birth

To learn more, please check: brainly.com/question/15133607

3 0
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