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Veronika [31]
4 years ago
6

A 10-year bond with a par value equaling $1,000, pays 7% annually. If similar bonds are currently yielding 6% annually, then wha

t is the market value of the bond? (use semi-annual analysis)
a) $700.00
b) $927.50
c) $1,074.70
d) $1,520.70
Business
1 answer:
Arlecino [84]4 years ago
7 0

Answer:

The answer is C.

Explanation:

This is a semiannual paying coupon.

N(Number of periods) = 20 periods ( 10years x 2)

I/Y(Yield to maturity) = 3 percent( 6 percent ÷ 2)

PV(present value or market price) = ?

PMT( coupon payment) = $35 ( [7 percent÷ 2] x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 20; I/Y = 3; PMT = 35; FV= $1,000; CPT PV= 1,074.39.

The nearest answer according to the options is $1,074.70

Therefore, the market price of the bond is $1,074.70

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The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units duri
alexandr402 [8]

Answer:

Equivalent units

Materials              10,200

Covnersion Cost   9, 100

Explanation:

\left[\begin{array}{cccc}&$Physical Units&$Materials&$Conversion\\$Beginning&2,000&0.6&0.4\\$Transferred out&9,000&&\\$Ending&3,000&0.8&0.3\\$Equivalent Units&&10,200&9,100\\\end{array}\right]

The equivalent units will be calcualte as follow:

 transferred out

 ending x completion

<u>  (beginning x completion)  </u>

Equivalent units

<u>Materials</u>

9,000 + 3,000 x 80% - 2,000 x 60% = 10,200

<u>Conversion Cost</u>

9,000 + 3,000 x 30% - 2,000 x 40% = 9,100

5 0
3 years ago
A policy that temporarily denies new appointments to a medical staff is called
slava [35]

The answer to the question being raised about a policy that temporarily denies new appointments to a medical staff is called Moratorium. Moratorium may come in different form one of which is the temporary denying of an appointment or an authorized period of delay or waiting or even suspension of an activity.

<span> </span>

4 0
3 years ago
Which is a commodity someone might invest in?
monitta

Answer:

b) natural resources

Explanation:

Natural resources refer to valuable materials found beneath, above, and on the earth's surface. They are naturally occurring, meaning no human effort is required in producing them. Natural resources make a good source of wealth. Examples of natural resources are land, mineral, oils and gas, forests, water, sunlight, wind, and many others.

Anyone with access to natural resources can invest to make them marketable products. Extraction of oil and refining is an example of investing in natural resources. Processing of trees to wood, use of solar to generate power are other examples.

6 0
3 years ago
Read 2 more answers
Tar Heel Blue, Inc. has a beta of 1.8 and a standard deviation of 28%. The risk free rate is 1.5% and the market expected return
Ivan

Answer:

12.84

Explanation:

In this question, we use the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 1.5% + 1.80 × (7.8% - 1.5%)

= 1.5% + 1.80 × 6.3%

= 1.5% + 11.34%

= 12.84

Since the standard deviation is not relevant. Hence, ignored it

8 0
3 years ago
The kinds of factors that might be reviewed when considering the "economic" aspect of the pestel include
Law Incorporation [45]

The available options are:

A. Changes in disposable income per capita

B. Changes in the average age of different consumer groups

C. Judicial outcomes that impact product liability within an industry

D. The election of a conservative congress

E. Changes in the speed of internet communication capabilities

Answer:

A. Changes in disposable income per capita

Explanation:

Considering the available options, the kinds of factors that might be reviewed when considering the "economic" aspect of the pestel include "Changes in disposable income per capita."

This is because, it is an option that depicts ECONOMIC instead of a socio-cultural, political, or technological factor.

PESTEL is an acronym for Political, Economic, Social, Technological, Legal and Environmental factors.

4 0
3 years ago
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