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cluponka [151]
3 years ago
12

There are zero coupon bonds outstanding that have a YTM of 6.09 percent and mature in 17 years. The bonds have a par value of $1

0,000. If we assume semiannual compounding, what is the price of the bonds?
Business
1 answer:
dlinn [17]3 years ago
6 0

Answer:

$3,606.49

Explanation:

the price of a zero coupon bond = maturity value / (1 + i)ⁿ

  • maturity value = $10,000
  • i = 6.09% / 2 = 3.045% semiannual interest rate
  • n = 17 years x 2 semiannual compounding = 34 periods

the price of a zero coupon bond = $10,000 / (1 + 3.045%)³⁴ = $10,000 / 1.03045³⁴ = $10,000 / 2.772779928 = $3,606.49

the formula we used to determine the market price of a zero coupon bond is basically the present value

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Answer:

d. The statement of cash flows shows how much the firm's cash, the total of currency, bank deposits, and short-term liquid securities (or cash equivalents), increased or decreased during a given year.

Explanation:

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2 years ago
what budgeting review for the next fiscal year occurs while one FY budget is being executed and the next fiscal year is being en
guajiro [1.7K]

Planning, Programming, Budgeting and Execution (PPBE) is the budgeting review for the next fiscal year occurs while one FY budget is being executed and the next fiscal year is being enacted.

<h3> <u>What is a budget?</u></h3>
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7 0
1 year ago
Last year, Michelson Manufacturing reported $10,250 of sales, $3,500 of operating costs other than depreciation, and $1,250 of d
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c. -$435.00

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation:

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

6 0
2 years ago
Matthew​ Liotine's Dream Store sells water beds and assorted supplies. His​ best-selling bed has an annual demand of 395 units.
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Answer:

77.48 units

Explanation:

Data provided in the questions

Annual demand = 395 units

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Holding cost per unit per year = $5

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{395}\times \text{\$38}}{\text{\$5}}}

= 77.48 units

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We simply applied the above formula so that approximate units could come. And it always expressed in units

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3 years ago
In what areas do federal agencies regulate to ensure safety and the general
NeTakaya

Answer:

d. All of the above

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Government regulations are the rules that players in an industry must abide by. In a free-market economy like the US, the government's main role is to regulate economic activities. The government enforces regulation through its various agencies.

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