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
lianna [129]
3 years ago
9

Union Local School District has bonds outstanding with a coupon rate of 2.9 percent paid semiannually and 24 years to maturity.

The yield to maturity on these bonds is 3.4 percent and the bonds have a par value of $10,000. What is the price of the bonds?
Business
2 answers:
SpyIntel [72]3 years ago
5 0

Answer: $4,642.37

The price of the bond is $4,642.37

Explanation:

Using the price of bond formula :

C × 1 - (1+r) *-n / r. + F / (1+r)*n

C = coupon rate = 2.9% of 10,000

= $290

n = 24years...... years to maturity

F = $10,000...... Face value/par value

r = yield to maturity = 3.4% = 0.034

Price of bond =

290 × 1–(1+0.034)*-24 /0.034

+ 10,000 / (1.034)*24

290× 1 - (1.034)*-24 / 0.034

+ 10,000 / (1.034)*24

290 × (1 - 0.448236347)

+ 4,482.36347

160.011459 + 4,482.36347

Price = $4,642.37 as the price of bond.

zhuklara [117]3 years ago
5 0

Answer:

Price of bond=$9,184.18

Explanation:

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate</em>

Value of Bond = PV of interest + PV of RV

The value of bond for Local School District can be worked out as follows:

Step 1

<em>PV of interest payments</em>

Semi annul interest payment:

= 2.9% × 10,000× 1/2= 145

<em>Semi-annual yield</em> = 3.4/2 = 1.7%

<em>Total period to maturity</em> = (2 × 24) = 48 periods

<em>PV of interest payment: </em>

=145× (1- (1+0.017)^(-48)/0.017)

= 4,731.77

Step 2

<em>PV of Redemption Value</em>

= 10,000 × (1.017)^(-48)

= 4,452.40

Step 3

Price of bond

=4,731.77 + 4,452.40

=$9,184.1766

You might be interested in
Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
White raven [17]

Answer:

$14,300

Explanation:

Based on the information given we were told that the​ management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance​ sheet.

5 0
3 years ago
Haystack, Inc. manufactures machinery used in the mining industry. On January 1, 2017 it leased equipment with a cost of $480,00
HACTEHA [7]

Answer:

$175,808

Explanation:

P=R (1-(1+i)^-n)/i

Where P=780,000*90%=$702,000

R=?

i=8%

N=5 years

By putting above values in formula, we get

P=R(1-(1+.08)^-5)/.08

702,000=R*3.993

R=702,000/3.993

R=$175,808

3 0
3 years ago
The amount of money you can change to a credit card is called?
babymother [125]
Checking money is the amount of money.
4 0
3 years ago
Read 2 more answers
Deindustrialization affects the economic landscape of countries. Describe the change in the dominant economic sector during indu
IceJOKER [234]

Answer:

a. One spatial change in manufacturing employment patterns as a result of deindustrialization is production shift.

b. Companies may move their industrial activities and manufacturing jobs to areas with a lower cost of labor.

c. Some natural places could be deemed unfit for humans.

d. Facilitating the construction of railroads, bridges, tall buildings, larger ships, and other infrastructure, Powering service-sector industries such as information technology, financial services, retail, and education, all of which depend on the processing power and connectivity brought about by the computer chip.

e. A growth pole is significant to an urban economy as it will attract supporting businesses such as retail establishments, restaurants, and other service industries to the city or urban area on a local scale.  

f. Post-fordism methods of production have transformed operation at individual factories by instead of workers working only one task all day and not being able to perform other tasks in the factory the workerscould now work multiple tasks and were not concealed to one specific area of work, this also made the workers more appealing to other factories and made it to where they could work other positions for more money and could not be so easily concealed for one spot.

Explanation:

A+

7 0
3 years ago
5 An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy
qaws [65]

Answer:

each policy will pay $25,000 of the loss

Explanation:

Based on the scenario being described within the question it can be said that the each policy will pay $25,000 of the loss. This is an equal share for each policy and is due to them having the pro rata liability clause. This clause states that a policy is only liable for an equal percentage of the loss if the insurer has other policies from other companies. As in this case.

5 0
3 years ago
Other questions:
  • Which of the following statements is FALSE?a. Electronic procurement systems can aid a company in saving both time and money.b.
    12·1 answer
  • When the central bank decides to increase the discount rate, the:?
    13·1 answer
  • Which Internet technology allows businesses to make presentations and share visual aids such as charts and graphs?
    13·2 answers
  • EA3.
    5·1 answer
  • Executive pay has drawn public scrutiny in recent years. Which of the following statements best explains the reason?A. Top execu
    13·1 answer
  • Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipmen
    8·1 answer
  • Which of these is a similarity between being self-employed and owning a business?
    8·2 answers
  • The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018:
    14·1 answer
  • When deciding on an office layout, a business or organization has to consider all of the following except:
    5·1 answer
  • 6.Yan and Joel form a corporation, but do not elect to make it a Subchapter S corporation.Each of them owns 50% of the stock. Af
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!