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aleksley [76]
3 years ago
12

A company issues $100,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually. The bonds are issued when the mark

et rate is 8%. The present value tables indicate the present value factor of an annuity for 3% at 10 periods is 8.5302; and for 4% at 10 periods is 8.1109. To find the present value of the interest payments, multiply _______ by the present value factor _________.
Business
1 answer:
lora16 [44]3 years ago
8 0

Answer:

To find the present value of the interest payments, multiply <u>$3,000</u> by the present value factor <u>8.1109</u>.

Explanation:

the market price of the bonds:

  • present value of face value = $100,000 / (1 + 4%)¹⁰ = $67,556.47
  • present value of coupon payments = $3,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $24,332.70

market price = $91,889.17

Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.

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What does the term primary, secondary and tertiary mean in business?
seropon [69]

Tertiary means commercial services.

Primary business purpose is a phrase denoting that the main intent of traveling out of town was to transact business.

A secondary industry makes products that are more likely to be consumed by individuals.

Hope this helps, have a good day. c;

7 0
3 years ago
Read 2 more answers
Products are winnowed out as they make their way down the path from conception to consumption, a process called ________.
Brilliant_brown [7]

Answer: cultural selection

Explanation:

Products are winnowed out as they make their way down the path from conception to consumption, a process called cultural selection.

Cultural selection theory is a theory about how certain things spread in the society, such as an art, a religious ritual etc. Due to innovation and other criteria, products will be winnowed out.

8 0
3 years ago
A study of an association between which ear is used for cell phone calls and whether the subject is​ left-handed or​ right-hande
Mandarinka [93]

Answer:

14.34%

Explanation:

To find the percentage of returned surveys over the total we divide and then multiply:

(717/5000)*100= 14.34%

The response rate appears to be low because it is less than 50% (which would be 2500 return surveys). Some statistical studies agree that 30 is the minimum number of observations a study must have, but this number does not ensure statistically significant results.  

The problem with a very low response rate is that survey´s answers does not significant represent the study population characteristics and so we cannot make inferences, correlations or regressions that are statistically significant. In this case, the conclusions that scientists make about association between the left-handed population and right-handed population with the use of cell phone calls could be wrong or not represent the population characteristics, which means answers are not trustful.  

8 0
3 years ago
You are the CEO of a company that has to choose between making a $100 million investment in Russia or Poland. Both investments p
dlinn [17]

Answer:

Going by the Ease of Doing Business ranking of 2020, prepared by the World Bank, which is perhaps the most reliable ranking to assess business risk in different countries.

Russia has a higher score in the ranking, which means that doing business is less risky there. Poland has particularly high risks in the starting a business category, which means that the mere act of starting the business in Poland might be a risky decision.

Russia has a high risk in trading accross borders, probably because the country is subject to several international sanctions.

If we go only by score, Russia has a higher score, so, as the CEO, you should probably invest there. However, you should avoid investing in Russian companies that try to export abroad, because of the high risks associated with trade in that country.

8 0
3 years ago
You have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation premium = 8%; default risk pre
vagabundo [1.1K]

Answer: 16%

Explanation:

Interest rate on long term treasury securities is calculated below using following formula:

Interest rate = Real risk-free rate + inflation premium + default risk premium + liquidity premium + maturity risk premium

= 3% + 8% + 2% + 2% + 1%

= 16%

Interest rate on long term treasury securities is 16%.

4 0
3 years ago
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