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Greeley [361]
3 years ago
13

Sydney purchases a newly issued, two-year government bond with a principal amount of $10,000 and a coupon rate of 6% paid annual

ly. One year before the bonds matures (and after receiving the coupon payment for the first year), Sydney sells the bond in the bond market. What price (rounded to the nearest dollar) will Sydney receive for his bond if newly issued one-year government bonds are paying a 5% coupon rat
Business
1 answer:
olga55 [171]3 years ago
6 0

Answer: $10095

Explanation:

First, we'll calculate the present value which will be:

= 600/(1+5%) + 600/(1+5%)² + 10000/(1+5%)²

= 600/(1+0.05) + 600/(1+0.05)² + 10000/(1+0.05)²

= 600/(1.05) + 600/1.1025 + 10000/1.1025

= 571.43 + 544.22 + 9070.30

= 10185.95

Then, we'll deduct the first coupon gotten. Thai will be:

= 10185.95 - 571.43

= 9614.52

Then, the price that Sydney will receive for his bond if newly issued will be:

= $9614.52 × (1+5%)

= $9614.52 × 1.05

= $10095

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P.s hopes this helps!

7 0
1 year ago
5) An advertiser is launching a campaign to educate people on its new products. The products are complex and require more detail
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Answer:

The advertiser should optimize the Clicks metric

Explanation:

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3 years ago
Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2013. The notes included:Note A:
Kipish [7]

Answer:

Option B ⇒ The annual interest rate on Note A is  9.35% .

Explanation:

Note B has an accrued interest for six months during 2013: $220,000 x .08 x 6/12 = $8,800.

The remainder of the accrued interest, $7,200 ($16,000 - $8,800) was from Note A, which was held for seven months in 2013.

Therefore, we have the following: $132,000 x annual interest rate x 7/12 = $7,200.

Thus, the annual interest rate on Note A would be ($7,200/132,000) x 12/7 = 9.35%.

Option B ⇒ 9.35% is the correct answer.

7 0
3 years ago
You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales rev
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Answer:

elastic.

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3 years ago
. Two options are under consideration for a machine that makes hard candy. Machine A has fixed cost of 8,901 and a variable cost
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Answer:

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At Indifference point of production amount (pounds), the total cost of each machine will be equal .

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At 18,600 pounds, cost of both the machines would be equal

8 0
3 years ago
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