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
zaharov [31]
3 years ago
6

Assume that coupon interest payments are made semiannually and that par value is $1,000 for both bonds.

Business
2 answers:
Allushta [10]3 years ago
8 0

Answer:

a. Bond A-$903.78  

   Bond B-$732.78  

b.Bond A-$830.62

   Bond B-$581.45  

c.Bond A-($73.16)

 Bond B-($151.33)

 

Explanation:

In calculating the bond values I adopted the present value formula in excel ,which is given below:

=pv(rate,nper,pmt,fv)

rate is the return on the bond also known as yield to maturity

nper is the time to maturity

pmt is the coupon payment annually which coupon rate multiplied by bond's face value

fv is the amount repayable on upon redemption which is $1000 per bond.

Find detailed calculations in the attached.

Download xlsx
babunello [35]3 years ago
7 0

Answer:

a.$731,09

b. $578.01

C.-$152.07

Explanation: see attached file

You might be interested in
You will be administratively suspended if you have a breath or blood alcohol level of ____ or above or refuse to submit to a che
olga nikolaevna [1]
As per ALS or administrative license suspension or revocation, a blood alcohol concentration of 0.08% or higher will automatically suspend you administratively aside from refusing to submit a chemical test. Automatically, licenses will be confiscated and will be suspended of criminal proceedings independently.
7 0
3 years ago
Will the fact that the euro has become the standard currency in the EU help or hinder a new McDonald's franchise in Europe?
Tju [1.3M]

mmfnfmmfnnhngnnng

ts.iOD6DYOYDO.toss.to.taia.tgamys.k.syky.soky.sSLYi

5 0
2 years ago
Read 2 more answers
Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two
aalyn [17]

Answer:

Insider Trading

Explanation:

These people were insider trading because they were using non public material information to trade stocks and make profit. The information was confidential thus it was non public and the information could change the price of the stock that is why it was material and these people used this information to trade the stock thus they were all insider trading.

4 0
3 years ago
Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $300,000 for a s
My name is Ann [436]

Answer:

Jan's Bakery and Tina Cookies

Total Average Cost for the merged firm

= ($300,000 + $75,000)/2

= $187,500

Explanation:

The total average cost for Jan's Bakery and Tina's Cookies is the average of their total operating costs.  This is obtained by adding $300,000 to $75,000 and then dividing by 2.

Though, in practical terms, the presence of some synergies will cut some of the operating costs off, especially such costs as rent, advertising, and some other administrative costs.  Some selling costs will also be eliminated when the merger goes through.

8 0
3 years ago
An individual's definition of self changes with age because
ziro4ka [17]
While one grows, you start to mature and when you mature you "change".
3 0
3 years ago
Read 2 more answers
Other questions:
  • Stellar Plastics is analyzing a proposed project with annual depreciation of $19,500 and a tax rate of 34 percent. The company e
    6·1 answer
  • Assume that a single commercial bank has no excess reserves and that the reserve ratio is 20 percent. If this bank sells a bond
    15·1 answer
  • David is the CEO of a large fast food chain. One part of his job is to meet with
    9·1 answer
  • You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors an
    9·1 answer
  • Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 20
    11·1 answer
  • george forgot to pay his monthly life insurance premium that was due march 1. the policy had a face value of $100,000. on march
    10·1 answer
  • While different natural resources and the theory of comparative advantage can explain many trade patterns, they cannot explain a
    15·1 answer
  • Chaikin Money Flow is calculated by summing the ADs over the past _____ days and dividing that sum by the total volume over the
    11·1 answer
  • Homeowners insurance covers loss of a home caused by which of the following two factors? fire inability of owner to pay mortgage
    12·2 answers
  • Like personal selling, direct marketing makes use of blank______ communication, allowing the seller to adapt messages according
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!