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
Plz help!!
steposvetlana [31]
Its b

Explain:
The reason it’s because the government collects taxes which are considered leakages
8 0
3 years ago
Read 2 more answers
Under the modern traditional theory, the sovereign may nationalize foreign-owned property only where: a. it is for a public purp
Nana76 [90]

Answer: a. it is for a public purpose.

Explanation:

According to the Modern Traditional theory on compensation which deals with the seizure of foreign-owned property by the government of the nation in which the property is located, the sovereign authorities may nationalize foreign-owned property if it is deemed to be for public use.

If the government has shown that nationalization is for the good of the nation, the theory espouses that it is allowed. They would however have to provide adequate compensation to those whom the property was seized from.

5 0
3 years ago
You could borrow money from friends and family who would like to invest in your business, or you could offer them ________. equi
kolezko [41]
The answer is equity.
4 0
3 years ago
a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following
oee [108]

Answer:

C. Debit Work in Process—Dept. B; credit Finished Goods—Dept. A

Explanation:

It is known that during continuous production, businesses find it difficult to isolate each individual unit and calculate a cost. Process costing systems accumulate the materials, labor and overhead costs for the period along with the total number of units produced. The total number of units produced includes both completed units and partially completed units. The company determines the percentage of completion for each partially completed unit and adds these amounts to the total number of completed units to determine the equivalent units.

4 0
3 years ago
e payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing
Harman [31]

Answer:

Invest

invest

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing

firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.

Thus the option that would yield the highest payoff is for both firms to advertise.

this is an example of prisoners dilemma

7 0
3 years ago
Other questions:
  • Anderson Company acquires Thompson Company by paying $30 million in cash. The fair value of the identifiable assets acquired is
    12·1 answer
  • A beverage company puts game pieces under the caps of its drinks and claims that one in six game pieces wins a prize. the offici
    10·1 answer
  • Alex received two job offers. He is not sure whether he should take a job at the movie theater that is close to his house and pa
    14·1 answer
  • He trial-and-error method of solving problems is also known as ______________.
    6·1 answer
  • The accuracy of cost-volume-profit analysis is limited because it assumes a strictly linear relationship between the variables.
    8·1 answer
  • A movie theater finds that when it prices tickets at ​$9​, the theater sells 250 per day. When the price is reduced to ​$8​, the
    7·1 answer
  • Cool Taste Company purchased $1,500 of supplies with cash. What effect does this transaction have on the accounting equation?
    7·1 answer
  • The Bramble Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents
    11·1 answer
  • The computer accessories that Javier is making and selling are bringing in a substantial amount of money for him. Inspired by th
    5·1 answer
  • How would define industry? What is the industry of a store that sells fishing poles
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!