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mrs_skeptik [129]
3 years ago
6

Lincoln Park Co. has a bond outstanding with a coupon rate of 5.76 percent and semiannual payments. The yield to maturity is 6.3

percent and the bond matures in 21 years. What is the market price if the bond has a par value of $2,000?a. $1,876.09b. $1,880.53c. $1,878.06d. $1,912.67e. 1,875.17
Business
1 answer:
brilliants [131]3 years ago
7 0

Answer:

e. 1,875.17

Explanation:

The computation of the market price i.e. present value is as follows:

Given that

RATE = 6.3% ÷ 2 = 3.15%

NPER = 21 × 2 = 42

PMT = $2,000 × 5.76% ÷ 2 = $57.6

FV = $2,000

The formula is given below:

=-PV(RATE,NPER,PMT,FV,TYPE)

After applying the above formula, the market price is $1,875.17

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Defining Work
sasho [114]

Answer:

Defining Work  Practice Active  While Rosa is taking classes at the local community college to earn her degree in landscaping, she works part-time as a florist's  assistant. This part-time work is an example of  a job

Explanation:

A part-time work taken by Rosa while in school is more or less like a job rather than a career as it is not in line with her course of study in school.

4 0
3 years ago
Which of the following is not a related party transaction? a) Acme Corporation leases office space to Norton Company. Mr. and Mr
KengaRu [80]

Answer:

c) Beth Teal pays $15,000 a year to her gardener, Ben. Beth is Ben's grandmother.

Explanation:

A related party transaction is any business transaction that takes place between entities that share some type of common interest, e.g. a parent company leasing a factory to one of its subsidiaries. They are legal, but the potential for conflicts of interest exist. Following the example, if the lease price is higher than fair market price, then the transaction could be considered fraudulent. The SEC requires that publicly traded corporations disclose all related party transactions.

7 0
3 years ago
Guyssssssss what is 3x8x10? please show your work/ or not POINT GIVEAWAY!!
Yuri [45]
3x8x10: 240
Use calculator
8 0
3 years ago
Read 2 more answers
James Corporation is planning to issue bonds with a face value of $500,000 and a coupon rate of 6 percent. The bonds mature in 1
Anestetic [448]

Answer:

Case A $581,757.17  

Case B $500,000.00  

Case C $416,910.21  

Explanation:

Current price of a bond

The market price of a bond can be computed using the pv formula in excel, which is given as :

=pv(rate,nper,pmt,fv)

Where rate is the yield to maturity on the bond divided by 2 since the bond in question is semi-annual interest paying bond i.e

Case A 4%/2=2%

Case B 6%/2=3%

Case C 8.5%/2=4.25%

The nper is the time to maturity of the bond multiplied by 2 for the same reason cited for yield to maturity  i.e 10 years *2=20

The pmt is the semi-annual coupon interest payable by the bond i.e 6%/2*$500,000=$15,000

The fv is the future value of the bond given as $500,000

Case A

=-pv(2%,20,15000,500000)

Pv= 581,757.17  

Case B

=-pv(3%,20,15000,500000)

PV=$$500,000.00  

Case C

=-pv(4.25%,20,15000,500000)

PV=$416,910.21  

8 0
3 years ago
Product mix width refers to the ________. A) number of versions offered for each product in the line B) ways in which the variou
sergey [27]

Answer:

D. number of different product lines the company carries

Explanation:

Product mix is referred to as product assortment which is the total number of product lines a company offers to its customers.

3 0
3 years ago
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