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
vfiekz [6]
3 years ago
13

The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is pri

ced to yield 12%, what is the bond's value today
Business
1 answer:
dybincka [34]3 years ago
7 0

Answer:

Bond Price  = $951.9633746 rounded off to $951.96

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment,  annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.  

Coupon Payment (C) = 1000 * 10% = $100

Total periods remaining (n) = 3

r or YTM = 12%  

 Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12]  + 1000 / (1+0.12)^3

Bond Price  = $951.9633746 rounded off to $951.96

You might be interested in
According to the "Marketing and Selling Travel: The customer," people travel for business, for meetings, conventions, and semina
kenny6666 [7]

Answer:

MICE; GIT; FIT

Explanation:

Meetings, Incentives, Conferencing & Exhibitions.

The MICE market refers to a specialized niche of group tourism dedicated to planning, booking, and facilitating conferences, seminars, and other events, which is a big moneymaker in the travel industry.

Group Inclusive Tour

It is a travel program with a special fare and specific requirements usually a minimum number of persons often more than 5 persons traveling as a group throughout the tour.

Foreign Independent Tour

Though somewhat of a misnomer, an FIT is any customized independent tour arranged by a travel agent.

3 0
3 years ago
Mike takes a card out of his wallet at the grocery store and swipes it to pay for his groceries. What did Mike use?
allsm [11]
Debit card i believe
7 0
3 years ago
Read 2 more answers
What is nursing ?why is it needed?​
Free_Kalibri [48]

Answer: What type of nursing?

3 0
3 years ago
Read 2 more answers
The management, creation, and study of money, investments, and other financial instruments is known as
serious [3.7K]

Answer:

Finance is:a.the study of how individuals,institutions,governments,and businesses acquire,spend,and manage money and other financial assets.

Explanation:

hope it helps you?

4 0
2 years ago
Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-
Naya [18.7K]

Answer:

$31584

Explanation:

Solution

The first step is to compute the total direct labor hours required for production:

Now for the month of June,

The total direct cost of labor = The produced Unit * The Hours per unit

= 2100 * 84 hours per unit

It gives us

=1,764 Hours

For the month of July,

The total direct cost of labor = The produced Unit * The Hours per unit

= 1900 * 84 Hours per unit

= 1,596 Hours

Next is to calculate the direct labor cost.

For the month of June

Direct labor cost =  Direct labor hours *  The rate per direct labor hour.

= 1,764 Hours * $9.40 per hour

= $16581.6

For the month of July

Direct labor cost =  Direct labor hours *  The rate per direct labor hour.

= 1,596 Hours * $9.40 per hour

= $15002.4

Now,

We will compute pr find the combined direct labor cost for the two months

The combined direct labor * Direct labor cost (June) + Direct labor cost (July)

Which is now,

= $16581.6 + $15002.4 = $31584

Therefore the combined direct labor cost for the two months is $31584

7 0
3 years ago
Other questions:
  • Gen-Fast Shoes wants to expand internationally and is deciding if its line of tennis shoes can be sold at a high price in Europe
    9·1 answer
  • ​________ is a special account for a company that has established credit with the hotel.
    13·1 answer
  • How can being a team player contribute to the salesperson’s success? To the success of the salesperson’s business?
    9·1 answer
  • Which information is found on a credit report?
    13·1 answer
  • Jepmem Inc is expanding its global operations into North Pidlin, even though the country has a high global terrorism index. As J
    12·1 answer
  • A company purchased new furniture at a cost of $32,000 on September 30. The furniture is estimated to have a useful life of 5 ye
    15·1 answer
  • As sole heir, Gascon receives all of Lafayette's property (adjusted basis of $15,700,000 and fair market value of $16,900,500).
    7·1 answer
  • Domestic Market for Steel, Alpha
    5·1 answer
  • 1. Suppose that Intel is considering building a new chip-making factory. Assuming that Intel needs to borrow money in the bond m
    7·1 answer
  • If Denise wants to know how much the jobs in her gym are worth in comparison to each other, she should do:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!