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earnstyle [38]
3 years ago
8

Sunland Company is about to issue $262,700 of 6-year bonds paying an 9% interest rate, with interest payable semiannually. The d

iscount rate for such securities is 8%.
Required:
In this case, how much can Sunland expect to receive from the sale of these bonds?
Business
1 answer:
VikaD [51]3 years ago
4 0

Answer:

Amount from sale of bonds  $275,028

Explanation:

The computation is shown below;

<u>Particulars      Amount        PV factor       Present value of cash flows </u>

Interest            $11,821.50   9.38507        $1,10,946

            ($262,700 × 0.09 × 6 ÷ 12)

Principal          $262,700   0.6246         $164,082

Amount from sale of bonds                    $275,028

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ohnston Marine sells and customizes boats. The firm donates generously to the community, supporting veterans' organizations, sch
goldenfox [79]

Answer:

Unethical but socially responsible

Explanation:

Johnston Marine is not morally correct for misleading prospective buyers as regards the power and reliability of the firm's boats but duly fulfills his obligation to act for the benefit of society at large which is shown in the donations he makes to the community, veteran support, schools, and local hospitals.

4 0
4 years ago
For example, Texaco has a beta coefficient of 0.44, which means that when the overall market rate of return changes by 1%, Texac
ValentinkaMS [17]

Answer:

r^2 is a measure of the proportion of the total risk related to the activities and decisions of the company compared to the benchmark market

Explanation:

Beta coefficient is used to guage the rate of returns of shares and also determines the risk appetite of investors.

High risk investors prefer a beta of >1. Rate of return is more sensitive in the benchmark market than the average stock.

When the beta coefficient is 1 there is perfect up and down movement with the benchmark market.

When beta is less than 1 it is less sensitive in the benchmark market than average stock. This is preferred by investors with low risk

r^2 is a proportional measure of total risk of a particular share related to the benchmark market

4 0
4 years ago
Due to shortages in raw materials, all firms in the micro-chip industry increased their prices to their customers. Yet demand fo
Charra [1.4K]

Answer:

Price Inelastic

Explanation:

Inelastic in the terms of the economic means or define as the static quantity of the goods and the services when the price of the product or service changes.

In short, it means that when the price increases, the buying habits of the consumer stay the same and the when the prices falls, the buying habits of the consumer remain unchanged.

So, in this case, the prices increases and the demand for the same did not change, which means that the demand for the micro chips is price inelastic.

5 0
3 years ago
Suppose that you get an offer from a bank to invest at a nominal 3% interest rate. You also expect that inflation this year to b
Leni [432]

Since the nominal interest rate is 3% and the inflation rate for the is 3.5%, then the value of the real rate of return will be -0.5%.

Your question is incomplete. Therefore, an overview of an interest rate will be given based on the information that we've. The nominal interest rate is the actual price that is paid by borrowers while the real interest rate accounts for Inflation.

In this case, the nominal interest rate is 3% and the inflation rate is 3.5%. Therefore, the real rate of inflation will be:

= Nominal interest rate - Inflation rate

= 3% - 3.5%

= -0.5%

Therefore, the real rate of return will be -0.5%.

Read related link on:

brainly.com/question/25557748

7 0
3 years ago
You are considering the purchase of an office building for $1.5 million today. Your expectations include the following: first-ye
julia-pushkina [17]

Answer:

$289,000

Explanation:

Item

Amount

Potential gross income (PGI)

$340,000

less: V&C allowance (at 15% of PGI)

51,000

Effective gross income (EGI)

$289,000

6 0
3 years ago
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