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
stira [4]
3 years ago
5

An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of in

terest is 6%, what is the current market value of the bond

Business
1 answer:
WARRIOR [948]3 years ago
4 0

Answer:

the present value of the bond is $16.67

Explanation:

given data

time NPER = 12 year = 12 × 2 = 24 semi annual

bond value FV  = $1000

interest PMT = $50

rate of interest = 6% = \frac{0.06}{2} = 0.03 = 3 % semi annual

 

solution

we will apply here formula for current value in excel as given below

-PV(Rate;NPER;PMT;FV;type)    .............1

put here value as

rate = 3% and NPER = 24 , and FV = 1000 and PMT = $50

solve it we get

the present value of the bond is $16.67

You might be interested in
Determine whether the markets, businesses, or products listed below belong in a competitive market, a monopoly, or a monopolisti
Westkost [7]

Answer:

(a) American Eagle is a monopolistically competitive market (b) Burger king is a  monopolistically competitive market (c)Merck's cholesterol-fighting drug is a monopoly market (d)your local electric company is a monopoly market. (e) a farmer who grows corn is a competitive market

Explanation:

Solution

American Eagle : It is Monopolistic Competitive. There are many firms which is of one of the number of clothing and accessories retailers in the market where no business have total control over market.

Burger king:This is a  monopolistic competitive market as there are many producers who sell same product but they are differentiated by branding.

Merck's cholesterol fighting drug: This is a monopoly market  as there is one firm that produce this drug .

Local electric company: It is a  monopoly market as it is owned by a local loop where it is the only source for the particular locality

The stock market: It is a  competitive market as there are large number of producers who want to earn profits .Here the market prices varies depending on competition .

A farmer who grows corn: It is a competitive market because there are so many people who grows corn and sell in the market.Here the market prices varies depending on competition

7 0
4 years ago
The records at smith and​ jones, inc. show that job 110 is charged with​ $12,000 of direct materials and​ $11,000 of direct labo
WARRIOR [948]

To solve:

Direct marterial cost = $12,000

Direct labor cost = $11,000

Manufacturing overhead = 85% of direct labor cost = $9,350


Add up all of the costs for the total cost of Job No. 110.

$12,000 + $11,000 + $9,350 = $32,350.

3 0
3 years ago
Which of the following correctly orders the investments from LOWER risk to HIGHER risk? ATreasury bond − Stock − Diversified mut
irakobra [83]
The correct answer is letter D: Diversified mutual fund - Treasury bond - stock. 

These orders of investments ensure a systematic low to high risk possibilities. A company needs to look into possible options where it can invest its assets in the form of a diversified mutual fund. Upon doing this, securing a bond from the state is wise investment in case loans are too high or the company comes to debts. The last risk would be engaging in stocks or the deliberation of this to several company owners. 
3 0
3 years ago
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the producti
Fittoniya [83]

Answer:

c. are incurred regardless of sales volume

Explanation:

Fixed costs are expenditures that do not vary with changes in production level.  They are the costs that remain constant throughout a financial period. A business will incur fixed costs as long as it's operational regardless of its output or sales level.

Examples of fixed costs are rent, depreciation, salaries, and insurance costs. The majority of overhead costs and indirect costs make up the fixed costs.  Variable cost contrasts fixed costs as they increase or decrease as production level changes.

7 0
4 years ago
A label on foods prepared and packaged onsite for retail sales must list which information?
kari74 [83]

It must have a <u>list of all ingredients used</u> in descending order by weight

<h3>What is Ingredient Label?</h3>

Ingredient labels are placed on the product or its packaging and provide us with information about the components of the product we are using or ingesting. By observing the sequence in which the ingredients are listed, we can determine how much of a certain ingredient comprises the final result. The order of the ingredients on a product's ingredient list must be based on weight or concentration, with the highest amount appearing first.

Take the ingredient list for a food item like potato chips as an example. Typically, "potatoes" will be put first because they make up the majority of the product. Probably next on the list will be "vegetable oil (sunflower, corn, and/or canola oil)," which is the least common item but boosts flavor in this situation.

Therefore, A label on foods prepared and packaged onsite for retail sales must  <u>list all ingredients used</u> in descending order by weight

For more information on the Ingredient list, refer to the following link:

brainly.com/question/2368262

#SPJ4

5 0
2 years ago
Other questions:
  • If the economy is normal, Charleston Freight stock is expected to return 14.3 percent. If the economy falls into a recession, th
    15·1 answer
  • Bill gore believed in keeping operational facilities small due to his focus on high quality interpersonal relationships, and as
    11·2 answers
  • Other than communication, justify two management skills require to successfully resolve disputes
    8·1 answer
  • Christoph Hoffeman of Kapinsky Capital believes the Swiss franc will appreciate versus the U.S. dollar in the coming​ 3-month pe
    5·1 answer
  • Demand elasticity analyzes the _______________ and the change in total revenue resulting from a change in price.
    12·1 answer
  • Which of the following might a student do in high school to learn more about automotive care?
    10·2 answers
  • PLZ ANSWER!!!! BRAINLIEST LOTS OF POINTS PLZPLZPLZ 2. Saujani describes that women are highly underrepresented in STEM careers.
    5·1 answer
  • A loan shop in town offers emergency loans of up to $600 for 1 month. The shop charges a 5% fee of the amount for the 1-month pe
    9·1 answer
  • Walton Publications established the following standard price and costs for a hardcover picture book that the company produces. S
    15·2 answers
  • How you will gather and formulate your data
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!