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makvit [3.9K]
3 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]3 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

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Why might you complete a 1040 instead of a 1040EZ
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Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2).
RideAnS [48]

Answer:

$ 20= Q1 (0.5 ) + Q3( 3)

Explanation:

Total Amount = $ 20

Dental treats Q2= $ 3

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The maximum no of catnip he can get after buying 6 dental treats from $ 2= $ 2/$0.5= 4

Let Q1 denote the catnip and Q3 denote the dental treats then the equation would be like

$ 20= Q1 (0.5 ) + Q3( 3)

So putting the values for q1=0,1,2,3,4,5,6,7,8,9,10

for values 0-4  Q3 will be $ 18

for values 4-6 Q3 will be $ 15

for values 6-8  Q3 will be $ 12

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The slope will look like the one given in the diagram.

Download docx
6 0
3 years ago
Brandon, a manager at fairpro technologies corp., is required to provide individual performance feedback to his subordinates. in
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In this scenario, the communication between Brandon and his subordinates is at an interpersonal level. Interpersonal communication includes giving individual feedback and communication of future organizational goals or ethical guidelines to employees at company meetings

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Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing faci
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Answer:

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The reason for Sarah to want to use standard costs to compare with her actual costs is:

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