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aliina [53]
3 years ago
7

You find a zero coupon bond with a par value of $10,000 and 27 years to maturity. The yield to maturity on this bond is 4.9 perc

ent. Assume semiannual compounding periods. What is the price of the bond
Business
1 answer:
viktelen [127]3 years ago
6 0

Answer:

$2,706.16

Explanation:

The Price of the Bond is also known as its Present Value or PV.

This is calculated as follows :

FV = $10,000

N = 27 × 2 = 54

I = 4.9 %

P/YR = 2

PMT = $0

PV = ?

Using a financial calculator to input the value as above, the PV is $2,706.16

Therefore, the price of the bond is $2,706.16

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Policies based on ABC analysis might include investing __________.A. extra care in forecasting for C items. B. more in supplier
Ilia_Sergeevich [38]

Answer:

Correct option is B

more in supplier development for A items.

Explanation:

In materials management, the ABC analysis is an inventory categorization technique. ABC analysis divides an inventory into three categories—"A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records.

The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls.

6 0
3 years ago
Wesimann Co. issued 12-year bonds a year ago at a coupon rate of 7.2 percent. The bonds make semiannual payments and have a par
strojnjashka [21]

Answer:

$1,138.92

Explanation:

Current bond price can be calculated present value (PV) of cash flows formula below:

Current price or PV of bond = C{[1 - (1 + i)^-n] ÷ i} + {M × (1 + i)^-n} ...... (1)

Where:

Face value = $1,000

r = coupon rate = 7.2% annually = (7.2% ÷ 2) semiannually = 3.6% semiannually

C = Amount of semiannual interest payment = Face value × r

C = $1,000 × 3.6% = $36

n = number of payment periods remaining = (12 - 1) × 2 = 22

i = YTM = 5.5% annually = (5.5% ÷ 2) semiannually = 2.75% semiannually  = 0.0275 semiannually

M = value at maturity = face value = $1,000

Substituting the values into equation (1), we have:

PV of bond = 36{[1 - (1 + 0.0275)^-22] ÷ 0.0275} + {1,000 × (1 + 0.0275)^-22}

PV of bond = $1,138.92.

Therefore, the current bond price is $1,138.92.

4 0
3 years ago
The accounting equation (Assets 5 Liabilities 1 Equity) is a fundamental business concept. Explain what this equation reveals ab
Orlov [11]

Answer:

Explanation: The Accounting Equation (Assets= liabilities +Equity) shows the relationship between a company's assets, Liabilities and owners equity which at the end of the day balance out.

Assets reflect the total value of the property that the business has, and which is in its turnover.

Liabilities reflect the size of the financing of an organization’s assets by third parties, banks, and private financial institutions.

Owner's Equity is characterized the value of investments made in this organization by its owner/s (shareholders). It can be said to be Capital plus retained earnings.

The accounting equation can be said to be Assets = liabilities+capital+revenue-expenses -dividend.

this is simply put that assets are totality of a company's liabilities, capital, revenue, expenses and dividend.

5 0
3 years ago
15) You are
Bingel [31]

Answer:

Only going to dept for things you really need and have planned for

6 0
2 years ago
The _____ is an approach whereby an organization allocates its marketing mix resources to reach its target markets.
spin [16.1K]
Strategic marketing process is the answer. Hope this helps.
5 0
3 years ago
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