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poizon [28]
3 years ago
10

Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of

5.7%. If the current market interest rate is 6.8%, at what price should the bonds sell?
$844.62

$979.40

$736.80

$1,006.36

$898.53
Business
1 answer:
tatuchka [14]3 years ago
5 0

Answer:

$898.54

Explanation:

The Price of the Bonds is equal to the Present Value or Fair Value of the Bonds.

Using the Financial Calculator, Input elements will be as follows :

N = 15

pmt = $1,000 × 5.7% = $57

YTM / i = 6.8%

Fv = $1,000

Pv = ?

Pv = $898.54

The Coupon rate is lower than the market rate thus the Bonds will fetch a lower price.

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Why are parents buying more puzzles than
blagie [28]

Answer:

B

Explanation:

children are more bored than ever so parents buy them puzzles so they stay busing doing something instead of saying they are bored to their parents every 3 seconds.

5 0
2 years ago
If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpfu
LenaWriter [7]

Answer:

D. Cash flow statement

Explanation:

A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.

5 0
3 years ago
Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market
antoniya [11.8K]

Answer:

d. Market clearing price will fall, and equilibrium quantity will fall.

Explanation:

Inferior goods are those goods which do not behave normally to market.

As with increase in consumer spending capacity, their demand decreases.

Accordingly with decrease in demand , the prices will fall.

Thus, either Statement b is correct or statement d.

Since demand and price both tend to fall, the equilibrium quantity will fall for the same, as the demand will be low, the equilibrium quantity will fall to meet the demand level.

Thus, Statement D is correct.

4 0
3 years ago
Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load. He makes it clear that it is up to
MA_775_DIABLO [31]

Answer:

B. Implied warranty of fitness

Explanation:

An implied warranty of fitness for an specific purpose refers to the fact that if the seller of a product knows that the product will be used for an specific purpose and that the buyer is purchasing that product for that using it that way, then an implied warranty of fitness is formed. In this case, the seller knew that Palmer was going to carry 5,000 pounds in the truck and therefore, by offering a certain truck to Palmer, an implied warranty of fitness was formed stating that the truck could carry that load.

5 0
3 years ago
Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $350 for
Brut [27]

Answer: $175

Explanation:

Here we can see that the business discussion happened only at dinner.

After Dinner they went for entertainment at the Cinema so that amount is not deductible as a business Expense.

The only amount deductible is the $350 for the meal.

Meals with clients are considered to be 50% deductible so solving for that we have,

= 350 * 0.5

= $175

$175 is amount of the expenditures that Holly can deduct as a business expense.

7 0
2 years ago
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