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S_A_V [24]
2 years ago
11

Item 4 A coupon bond that pays interest annually has a par value of $1,000, matures in seven years, and has a yield to maturity

of 9.3%. The intrinsic value of the bond today will be ______ if the coupon rate is 8.5%.
Business
1 answer:
maria [59]2 years ago
7 0

Answer:

$960.138

Explanation:

Calculation to determine what The intrinsic value of the bond today will be if the coupon rate is 8.5%.

Using financial calculator to determine intrinsic value of the bond today

FV = $1000

PMT =8.5%*$1,000=$85

n = 7 years

i = 9.3%

PV=?

Hence,

PV = $960.138.

Therefore The intrinsic value of the bond today will be $960.138 if the coupon rate is 8.5%.

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Would loaning a friend $10 to buy a movie ticket be an investment? Why or why not
Luden [163]

Answer:

no

Explanation:

An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.

3 0
2 years ago
Manten is a popular brand of hiking boots. Its advertisements emphasize the experience of conquering unfamiliar terrain in the w
Helga [31]

Answer: Transformational advertising  

Explanation:

From the given case/scenario, we can state that this approach is an example of Transformational advertising. Transformational advertisement is referred to as or known as advertising which tends to associate experience of consuming advertised brand in association with unique parts of the psychological characteristics that are not typically associated with brand or the experience.

3 0
3 years ago
What are some characteristics of an informal group?
Nana76 [90]

Answer:

Hajj and Umrah packages which are not

5 0
2 years ago
A company's ability to achieve and maintain a unique and valuable competitive position both within a nation and globally, genera
slega [8]

It is known as competitive advantage.

Competitive advantage refers to factors that allow a company to produce goods or services more efficiently or at a lower cost than competitors. These components allow the manufacturing unit to generate more sales or profits than its competitors in the market.

It is the favorable position that a firm seeks in order to outperform its competition.

Competitive advantages are classified into two types: comparative advantages and differentiated advantages.

A company's comparative advantage is its ability to manufacture something more effectively than a rival, resulting in larger profit margins.

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5 0
2 years ago
Doe Manufacturing plans to sell 6,000 purple lawn chairs during May, 5,700 in June, and 6,000 during July. The company keeps 15%
lora16 [44]

Answer: 5,745 units

Explanation:

Given that,

Plans to sell:

6,000 purple lawn chairs during May

5,700 in June

6,000 during July

company keeps 15% of the next month's sales as ending inventory

Units should Doe produce during June:

= Sales in June + Ending inventory (15% of July sales) - opening Inventory (15% of June sales)

= 5,700 + 900 - 855

= 5,745 units

6 0
3 years ago
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