All categories

3 years ago

What factors should be considered in determining the issue price of a debenture

Mathematics

1 answer:

GenaCL600 [577]3 years ago

8 0

Answer:

The rate of interest

The duration of the debenture

The periodic interest payment

Step-by-step explanation:

The issue price of a bond is computed using the excel formula present value,which is given below:

=-pv(rate,nper,pmt,face value)

The rate refers to yield to maturity of the debt instrument.This has impact on how much the debenture is sold,hence the rate of interest to be given to investors would go a long way in determining how much the bond or debenture is sold for.A high credit rating company would pay a minimum yield to maturity while a low credit rating company needs to offer a higher yield so as to encourage investors to take the higher risk of investing in the company.

The length of time is also which is denoted by the nper,the longer the loan would be repaid the higher of uncertainty of the company defaulting in repaying.

The coupon interest payable periodically,annually or semiannually is a also an important factor in determining the price of the debenture

You might be interested in

You must be at least 42 inches tall to ride the bumper cars at an amusement park. Write an inequality that represents this situa

Anestetic [448]

Answer:

x is greater than or equal to 42 inches (I can't do the smybol for it)

Step-by-step explanation:

5 0

3 years ago

A city planner wants to estimate the average monthly residential water usage in the city. He selected a random sample of 100 hou

hodyreva [135]

Answer:

The 90% confidence interval for the average monthly residential water usage for all households in this city is between 4401.3 gallons and 4598.7 gallons.

Step-by-step explanation:

We have that to find our $\alpha$ level, that is the subtraction of 1 by the confidence interval divided by 2. So:

$\alpha = \frac{1-0.9}{2} = 0.05$

Now, we have to find z in the Ztable as such z has a pvalue of $1-\alpha$ .

So it is z with a pvalue of $1-0.05 = 0.95$ , so $z = 1.645$

Now, find the margin of error M as such

$M = z*\frac{\sigma}{\sqrt{n}}$

In which $\sigma$ is the standard deviation of the population and n is the size of the sample.

$M = 1.645*\frac{600}{\sqrt{100}} = 98.7$

The lower end of the interval is the sample mean subtracted by M. So it is 4500 - 98.7 = 4401.3 gallons

The upper end of the interval is the sample mean added to M. So it is 4500 + 98.7 = 4598.7 gallons

The 90% confidence interval for the average monthly residential water usage for all households in this city is between 4401.3 gallons and 4598.7 gallons.

4 0

3 years ago

Adjacent angles have no common interior points. A.)Always. B.)Sometimes. C.)Never

irina [24]

The actual answer is "always", as adjacent angles have no common interior points under any circumstances. The correct option among all the options that are given in the question is the first option or option "A". I hope that this is the answer that you were looking for and it has come to your help.

6 0

3 years ago

Read 2 more answers

A triangle has side lengths measuring 2x 2 ft, x 3 ft, and n ft. which expression represents the possible values of n, in feet?

swat32

The expression x – 1 < n < 3x + 5 represents the possible values of n, in feet whose side lengths are (2x+2) ft, (x+3) ft, and n ft.

<h3>What is the triangle?</h3>

The triangle can be defined as a three-sided polygon in geometry, and it consists of three vertices and three edges. The sum of all the angles inside the triangle is 180°.

We have a triangle whose side lengths measures are (2x+2) ft, (x+3) ft, and n ft.

If we take the first two sides are (2x+2) ft, (x+3) ft, and third is n ft.

By the triangle property, that sum of the two sides is always greater than the third side.

2x+2+x+3 > n

3x+5 > n .....(1)

Now take first two sides as n ft, (x+3) ft, and third side (2x+2) ft

n+x+3 > 2x+2

n > x-1 .....(2)

From the inequality (1) and (2), we get:

x – 1 < n < 3x + 5

Thus, the expression x – 1 < n < 3x + 5 represents the possible values of n, in feet whose side lengths are (2x+2) ft, (x+3) ft, and n ft.

Learn more about the triangle here:

brainly.com/question/25813512

6 0

2 years ago

7: Jikayla earns $19 per hour babysitting. Last week, she worked 7 hours on Monday, 6 hours on Tuesday, and 7 hours on Wednesday

____ [38]

Answer:

$475

Step-by-step explanation:

7+6+7+5 = 25

25*19 = 475

6 0

3 years ago