If the bond's par value is $1000,current yield be 6.90% and the bond is quoted at 101.17 then the each coupon payment is $34.9.
Given the bond's par value is $1000,current yield be 6.90% and the bond is quoted at 101.17.
We are required to find the amount of each coupon payment.
Bond value=$1000
Current yield=6.90%=0.0690
Bond quoted=101.17
Payment method=Semi annual =2 payments
Computation of annual coupon amount:
Current yield=Annual coupon/(Bond value*Bond quoted)
0.0690=Annual coupon/(1000*101.17%)
0.0690=Annual coupon/1011.7
Annual coupon=1011.7*0.0690
Annual coupon=$69.8073
Computation of each payment:
Each payment=Annual coupon /2 payment
Each payment=69.8073/2
Each payment=34.90365
Hence the amount of each payment of bond having par value of $1000 is $34.9.
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The principle of reciprocity is being used when emphasizing the free nature of the useful tool in the press release, as this principle generates a reciprocal response to individuals.
<h3 /><h3>What is the principle of reciprocity?</h3>
It corresponds to an approach developed by Cialdini, who states that reciprocity is the first principle of persuasion, as individuals are conditioned to reciprocate favors and concessions to others.
Therefore, by using the principle of reciprocity, emphasizing the free nature of the new app, the company hopes to generate more attention, use and positive response from the target audience as a form of retribution.
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Answer:
$849,000 gift card revenue should GoodBuy recognize in 2018
Explanation:
gift cards revenue of GoodBuy recognized in 2018
= gift cards redeemed + remaining gift cards
= $810,000 + $39,000
= $849,000
Therefore, $849,000 gift card revenue should GoodBuy recognize in 2018
An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>
<h3>
What is a forward contract?</h3>
A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.
A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.
Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.
Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.
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D. can be flipped for profit and E. has a maturity date
