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
makvit [3.9K]
4 years ago
11

D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupo

n of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell
Business
1 answer:
OleMash [197]4 years ago
7 0

Answer:

$894.65

Explanation:

Given data:

n= time = 10 years

par value= $1000

annual coupon = 5.5%

interest rate = 7.0%

bond price = present value of interest + present value of redemption value.

present value of interest:

C = 5.5% of 1000 = $55

PV = C x (1 - (1 + r)^(-n)/r

PV = 55 x 1.07^(-10)/0.07

PV = 386.3

present value of redemption value:

pv = f / (1 + r)^(n)

where f = par value

PV = 1000 / (1.07)^(10)

PV = 508.35

summing up both values

508.35 + 386.3

= $894.65

You might be interested in
Which of these tips regarding the use of handouts as a visual aid is most accurate? a. handouts should be discussed during the p
seraphim [82]
<span>Which of these tips regarding the use of handouts as a visual aid is most accurate? Handouts should be discussed during the presentation. When giving a presentation with handouts, make sure to discuss the details of them. An overall summary of what is on them and their purpose to the listener is fine, you just don't want to send them home with a handout they aren't connected to. If you hand them something without giving any insight as to what it is, they may not give it any attention once they leave the presentation. </span>
8 0
3 years ago
As used in government accounting, expenditures are decreases in:_______
saw5 [17]

As used in government accounting, expenditures are decreases in net assets. Hence, option A is correct.

<h3>What is net assets?</h3>

The net assets are the total assets of the company minus the liability of the company, which is the basic calculation of the net assets. It is calculated at the time of preparing a company's balance sheet, and for this purpose, the person has to calculate the trading and profit and loss of the company.

Net assets are considered the equity of the company, and it is the retained earnings of the company. The corporation retains its profits and does not disperse them to the owners. Profits are retained in the company to support its expansion.

Thus, option A is correct.

For more details about net assets, click here:

brainly.com/question/20114227

#SPJ4

6 0
2 years ago
In a planned economy, prices of commodities are controlled by _________.
AnnZ [28]
<h3>Answer:</h3>

C. The government

<h3>Explanation:</h3>

Vocabulary

First, it is important to define the key terms in the question and answers.

  • Planned Economy- A planned economy is an economy where the investments and capital are allocated by the government.
  • Commodities - Commodities are economic goods that have real value due to their real-life usefulness (like lumber) or rarity (like gold).

How Planned Economies Work

As its name suggests, a planned economy plans the economy out and the price of goods within the markets. These plans are created by the government. This means that private businesses, consumers, and supply/demand do not control prices. Only the government can do that because the government has full control of planned economies. This is the reason that planned economies are also called command economies because the economy is commanded by the government.

5 0
2 years ago
A marketing channel ____ (A) emphasises benefits of a product to consumers.(B) makes possible the flow of products and services
svetoff [14.1K]

Answer:

Correct statement is (B)

Explanation:

Marketing channel is the combination of all the people who are responsible for delivery or reach of the product from producer to the last consumer.

Thus, it is a chain from producer to wholesaler to retailer and then to consumer.

Marketing channel makes sure about the market present for the next level. That is for producers it provides wholesalers, for wholesalers it provides retailers and to retailers it provides consumers.

Thus, statement (B) is correct.

4 0
4 years ago
creden follows all procedural steps in conveying his property to adam. however, the deed does not state what type of interest is
Pepsi [2]

In a case whereby creden follows all procedural steps in conveying his property to adam. however, the deed does not state what type of interest is transferred to adam, the type of estate does adam own is A life estate, if that is what they agreed upon.

<h3>What is a life estate?</h3>

A life estate can be described as the estate that is been created by a deed that gives the land to the person "for life.

It should be noted that in this type of estate then there is usually the identification of what should happen to it after that person dies.

Therefore, the second option is correct.

Learn more about estate here: brainly.com/question/886326

#SPJ1

missing options:

A conditional estate, since there is a discrepancy.

A life estate, if that is what they agreed upon.

Fee simple absolute is presumed, since the deed does not state otherwise.

Either a fee simple absolute or a life estate.

3 0
1 year ago
Other questions:
  • What might be a consideration in deciding where to buy something?
    10·2 answers
  • Pursuant to the development of scientific management, quality control was carried out by skilled craftspeople, who served both a
    7·1 answer
  • The airlines have different rules on discounts for different types of travelers. The airlines do this because:
    15·1 answer
  • Suppose that the residents of Vegi-Topia spend all of their income on cauliflower, broccoli, and carrots. In 2013, they buy 50 h
    6·1 answer
  • Economics is the study of how society manages its
    7·1 answer
  • 3 best basic economic questions
    15·1 answer
  • Shares of ABBO stock are currently selling for $29.06 a share. The last annual dividend paid was $1.50 a share and dividends inc
    12·1 answer
  • 3) Express 420cm as a percentage of 2m.​
    9·2 answers
  • Damages meant to punish the person who has committed a tort are called compensatory damages.
    9·1 answer
  • The is the nominal interest rate minus the rate of inflation? real gdp real interest rate nominally adjusted annualized interest
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!