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
kykrilka [37]
3 years ago
12

LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to

be 7.25% and interest payments are expected to be paid semi-annually. If the market is requiring a return of 10% annually on similar bonds, then what should LLY expect to receive for each bond they issue? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)
Business
1 answer:
VladimirAG [237]3 years ago
6 0

Answer:

$739.72 ≈  739.72

Explanation:

we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])

  • fv = $1,000
  • pmt = $1,000 x 7.25% x 1/2 = $36.25
  • nper = 60
  • rate = 10% / 2 = 5%
  • present value = ?

=PV(5%,60,36.25,1000) = -739.72 since excel calculates the initial investment, it is always negative, so we just change the sign.

You might be interested in
Which of the following is an example of sustainable farming
Reil [10]
I think its B.

Sustainable farming focuses on producing long-term crops and livestock, while also having minimal effects on the environment.
7 0
3 years ago
Why does a comma need to follow the word rain in this sentence?this is the following question, The weather guy said that it was
Strike441 [17]

Answer:

Eng grammar

Explanation:

Comma is Basically a 1 second pause after the word so when you say the above mentioned sentence then a one second pause is required after the word rain..

Hope I Helped

Pls mark as Brainliest.

8 0
3 years ago
Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compou
GaryK [48]

Answer: D) Daily Compounding

Explanation:To earn as much interest as possible, Anthony should open a savings account that earns compound interest and has the highest interest rate.

Daily compounding is compounded every day, hence Anthony will get the best rate of return on his interest with this.

7 0
2 years ago
Kroger decided to introduce a new product that appeals to Hispanic consumers. While the product is highly successful among Hispa
Leto [7]

Answer: Target market

Explanation: The target markets refers to the group of customers at which an organisation aims its marketing efforts. In simple words, it is that market in which the organisation intends to make it sale for the generation of profits.

In the given case, Kroger is introducing a product that satisfies needs and preferences of Hispanic customers specially. So we can conclude that Hispanic consumers are the target market for Kroger.

4 0
3 years ago
A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definit
Natasha2012 [34]

Answer:

A) new buy

Explanation:

A new buy situation is basically when you have to purchase a product or service for the first time. Since the company hasn't purchased this product or service before, the buying team will have to define several aspects for the first time and that takes time (e.g. potential vendors, different product qualities, etc.). There is no precedent buying situation, so the entire process must be completed.

7 0
3 years ago
Other questions:
  • Annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?
    15·1 answer
  • How does Wikipedia work? What is different about this operation from other encyclopedias?
    6·2 answers
  • Assets for a particular business might include: A) cash, accounts payable, and notes payable. B) cash, retained earnings, and ac
    14·1 answer
  • Unsought goods are characterized as being the kinds of goods that consumers _____.
    11·1 answer
  • onceptual Connection: For each situation, identify the possible root cause(s) of the activity cost (such as plant layout, proces
    6·1 answer
  • Ichor Co. reported equipment with an original cost of $379,000 and $344,000 and accumulated depreciation of $153,000 and $128,00
    11·1 answer
  • Flipco signed a 10​-year note payable on January​ 1, 2018​, of $ 800, 000. The note requires annual principal payments each Dece
    14·1 answer
  • Which of the following answer options are ways to prevent falls from ladders?
    6·2 answers
  • Each of the following items would drive the need for layout planning except ______.
    11·1 answer
  • During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,000 a year. She has asked
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!