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
Debora [2.8K]
3 years ago
10

Wesimann Co. issued 10-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments and have a par va

lue of $1,000. If the YTM on these bonds is 5.3 percent, what is the current bond price?
Business
1 answer:
drek231 [11]3 years ago
7 0

Answer:

$1,123.69

Explanation:

We can use the yield to maturity formula to determine the current market price of the bonds.

YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

  • YTM = 5.3% / 2 = 2.65%
  • coupon = $1,000 x 7% x 1/2 = $35
  • face value = $1,000
  • n = 9 years x 2 = 18

0.0265 = {35 + [(1,000 - M)/18]} / [(1,000 + M)/2]

0.0265 x [(1,000 + M)/2] = 35 + [(1,000 - M)/18]

0.0265 x (500 + 0.5M) = 35 + 55.56 - 0.05555M

13.25 + 0.01325M = 90.56 - 0.05555M

0.0688M = 77.31

M = 77.31 / 0.0688 = $1,123.69

You might be interested in
The post-exposure exam follow-up must include counseling about the possible implications of the exposure and your infection stat
Travka [436]
I believe the correct answer from the choices listed above is the third option. <span>You only receive a copy of the evaluating healthcare professional’s written opinion if your test results were positive. </span>
Hope this answers the question. Have a nice day.
4 0
3 years ago
Read 2 more answers
Which of the following statements is NOT true? America's economy is becoming much less American. Markets are shifting slowly and
valentinak56 [21]

Answer:

<h2>The first statement in the answer choices or options given in the question is NOT true in this case or America's economy is becoming much less American.</h2>

Explanation:

  • In this instance, the first statement given in the answer choices or America's economy is becoming much less American seems untrue or rather meaningless or baseless statement.
  • First,saying that American economy is becoming less American doesn't apparently make any logical sense as American economy refers to a particular country's economy which is America. Furthermore, American economy is not any official theoretical classification or a type of economy such as a market economy,capitalist economy,mixed economy,socialist economy and so on.
  • Even if some people might refer to American economy as a predominantly capitalistic economic structure,the given statement appears to be untrue as there is no logical or practical evidence to suggest that the American economy is indeed becoming less capitalistic or market oriented.
4 0
3 years ago
Wilson, a marketing VP for Productivity Advertising, has been introducing concepts to help guide the marketing effort. A timeles
Ann [662]

Answer:

a communication task

Explanation:

Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers.

The Defining Advertising Goals for Measured Advertising Results (DAGMAR) model states that an advertising goal involves a communication task that is specific and measurable over a specific period of time.

Basically, it is a timeless model that avails businesses the ability to set advertising objectives while also measuring the results of an advert campaign.

3 0
3 years ago
01:42:59 Scott really enjoys working with money, including making it grow. He is also a natural leader and would enjoy working w
umka2103 [35]
The finance cluster and the management cluster would be best for Scott because in finance he can work with money and others but in the management cluster he can be a leader working with others.
6 0
3 years ago
Read 2 more answers
A company planned to sell 100 canoes for the month of April at an average sales price of $600. Midway through the month, the com
andreyandreev [35.5K]

Answer:

flexible budget amount for canoe sales revenue for April is $72000

Explanation:

given data

sell =  100 canoes

average sales price = $600

sold = 65

total sales = 130

canoes at an average price = $595

actual sales = 120 canoes

to find out

flexible budget amount for canoe sales revenue for April

solution

we know here for flexible budget april sale unit are = 120

and selling price is $600

so that April sales will be here = 120 × 600

April sales = 72000

so flexible budget amount for canoe sales revenue for April is $72000

3 0
3 years ago
Other questions:
  • For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP
    8·1 answer
  • ​the majority of each monthly payment at the beginning of the loan goes to pay the:
    7·1 answer
  • Opera Corp. uses the dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows: Dec
    5·1 answer
  • How do you know if more than one person has reviewed your document?
    5·1 answer
  • Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums.Factor
    7·1 answer
  • I really could use help
    11·1 answer
  • Using an advertising agency is a cost-effective way for a small business to advertise its products or services.
    6·1 answer
  • homeworklib Assume the following for White Top Inc. for the current fiscal year. White Top applies overhead on the basis of unit
    5·1 answer
  • Chapter 4 developing a business plan
    7·1 answer
  • Employees at southwest airlines donate volunteer hours to ronald mcdonald houses throughout the united states. this is an exampl
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!