1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aleksklad [387]
3 years ago
5

Coca-Cola Enterprises issues a 0.07 semi-annual coupon bond with 16 years of maturity. What is the bond's price if the yield to

maturity (YTM) is 0.13?a. $1,020 b. $1,162 c. $932 d. $1,216 e. $600
Business
1 answer:
Westkost [7]3 years ago
4 0

Answer:

Bond Price​= $600

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 16*2= 32

Cupon= (0.07/2)*1,000= $35

YTM= 0.13/2 = 0.065

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 35*{[1 - (1.065^-32)] / 0.065} + [1,000/(1.065^32)

Bond Price​= 466.69 + 133.29

Bond Price​= $600

You might be interested in
Byte Computer Corporation acquired 90 percent of Nofail Software Company’s common stock on January 2, 20X3, by issuing preferred
natima [27]

Answer: Step by step explanation of the consolidated balance sheet is given in the attached document.

Explanation:

Consolidated Balance Sheet

A consolidated balance sheet presents the assets and liabilities of a parent company and all its subsidiaries on a single document, with no distinctions on which items belong to which companies. If your company has $1 million in assets and it purchases subsidiaries with assets of $400,000 and $300,000, respectively, then your consolidated balance sheet will show $1.7 million in assets, and the sheet will commingle those assets. For example, in the asset section, accounts receivable will list the total amount of receivables held by all three companies.

When to Consolidate

A company must issue consolidated financial statements whenever it owns a controlling stake in another business – that is, whenever it owns more than 50 percent of that business. If the parent company owns 100 percent of the subsidiary, this is pretty straightforward. Complications arise, however, if the parent company owns a controlling stake with less than 100 percent ownership. Part of the subsidiary belongs to someone else, and that must be reflected on the balance sheet.

5 0
3 years ago
Haynes, Inc. obtained 100 percent of Turner Company's common stock on January 1, 2017, by issuing 10,000 shares of $10 par value
saveliy_v [14]

Answer:

a. $848,000

b. No

Explanation:

a. The calculation of consolidated equipment balance as of December 31, 2018 is shown below:-

Consolidated equipment balance = Equipment balance of Haynes + Equipment balance of Turner + Allocation based on fair value - Depreciation

= $500,000 + $300,000 + $5,000 - (($5,000 ÷ 5 × 2)

= $500,000 + $300,000 + $5,000 - $2,000

= $848,000

2. No it will not affect by the investment method applied by the parent.

6 0
3 years ago
The key points of a passage that should be underlined or highlighted include:
antoniya [11.8K]
<span>ideas that support the author's main idea.</span>
6 0
3 years ago
In a cohesive group, group members have a degree of dependence on the group. A. True B. False
guajiro [1.7K]

It is true that members in a cohesive group have a degree of dependence on the group.

<h3>What is cohesive group?</h3>

A cohesive group is one whose members are very positive in their feeling towards the group and are strongly motivated to retain their membership in the group.

There cannot be group cohesion if the members do not wish to belong to the group or do not find the motivation to belong to the group.

Hence, It is true that members in a cohesive group have a degree of dependence on the group.

Learn more about cohesive group here : brainly.com/question/21837802

8 0
2 years ago
Nancy has been studying microbiology as a part of her cosmetology course. What knowledge would she gain?
Alinara [238K]

Answer: A.  how to prevent transmission of infection

Explanation:

Microbiology deals with understanding microorganisms such as bacteria, viruses, fungi and others. Some of these microorganisms are the cause of infections when they come in contact with other living things.

In studying microbiology as part of cosmetology, Nancy will most probably gain knowledge on how to prevent transmission of these microorganisms that cause infection.

6 0
3 years ago
Other questions:
  • You are an experienced small business owner who would like to become a franchisee of Quick Burger, a nationwide franchise of fas
    6·1 answer
  • Which of the following sentences with internal sentence interrupters use correct punctuation? Check all that apply. The VP of fi
    15·1 answer
  • Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying pr
    13·1 answer
  • You order a $20 sweatshirt online for a Father’s Day gift. The shipping charge is $10. You can get free shipping if your order t
    8·1 answer
  • A company opts not to purchase more resources, since additional output will not increase their revenue.Which BEST describes this
    11·1 answer
  • Myopic behavior occurs when a manager takes actions that improve budgetary performance in the short run but bring long-run harm
    15·1 answer
  • Is $1970.00 rental income debit or credit
    12·1 answer
  • If someone is discriminated by a law based on gender, the burden is on the state to show that the law is substantially related t
    14·2 answers
  • The term performance quality refers to: Multiple Choice Customer satisfaction with the total experience of a product or service.
    13·1 answer
  • Mark and Riley live in Orlando and decide to open a souvenir shop. They incorporate their shop, Sunshine Gifts, Inc., in the sta
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!