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solong [7]
3 years ago
14

Lion Corp. has a $10,000 par value bond outstanding with a coupon rate of 4.8 percent paid semiannually and 22 years to maturity

. The yield to maturity on this bond is 4.2 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Business
1 answer:
cupoosta [38]3 years ago
7 0

Answer:

$10,856.08

Explanation:

For computing the dollar price of the bond we have to applied the present value formula which is to be shown in the attachment below:

Given that,  

Future value = $10,000

Rate of interest = 4.2% ÷ 2 = 2.4%

NPER = 22 years  × 2 = 44 years

PMT = $10,000 × 4.8% ÷ 2  = $240

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After applying the above formula, the dollar price of the bond is $10,856.08

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Colt1911 [192]

Answer:

D. they will be unable to earn higher-than-normal profits in the long run.

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6 0
4 years ago
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Suppose the economy is operating at an output of $4,000 billion. Assume furthermore that potential output is $5,000 billion and
motikmotik

Answer:

The correct answer is $250 billion.

Explanation:

An economy is operating at an output level of $4,000 billion.  

The potential output level is $5,000 billion.  

The marginal propensity to consume is 0.75.  

The recessionary gap is

= $5,000 billion - $4,000 billion

= $1,000 billion

ΔY = \frac{1}{1-MPC}\times \Delta G

$1,000 = \frac{1}{1-0.75}\times \Delta G

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$1,000 = 4 \times \Delta G

ΔG = \frac{1,000}{4}

The change in income required to correct this recessionary gap is $250 billion.

7 0
4 years ago
What is the difference between a layoff and being fired?
KIM [24]
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4 0
3 years ago
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Karolina has been working in integrated marketing communications for High Flying Kites Company. She is very conscious of how muc
Anit [1.1K]

Answer:

Database Marketing

Explanation:

According to my research on the different marketing methods, I can say that based on the information provided within the question the best communication method for achieving her goals would be Database Marketing. This is because this type of marketing technique uses databases to choose the right individual market segments and delivering their marketing message through those channels with the people that are already part of those market segments.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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4 years ago
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Answer following question with true or false and explain.A firm's profit margin is 5%, its debt/assets ratio is 56%, and its div
maria [59]

Answer:

False

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3 years ago
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