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
REY [17]
3 years ago
12

Gugenheim, Inc., has a bond outstanding with a coupon rate of 6.3 percent and annual payments. The yield to maturity is 7.5 perc

ent and the bond matures in 19 years. What is the market price if the bond has a par value of $2,000
Business
1 answer:
elena-s [515]3 years ago
3 0

Answer:

Bond Price​= $1,761

Explanation:

Giving the following information:

Par value= $2,000

Cuon= 0.063*2,000= $126

YTM= 7.5% = 0.075

Periods= 19 years

<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​= 126*{[1 - (1.075^-19)] / 0.075} + [2,000/(1.075^19)]

Bond price= 1,254.84 + 506.13

Bond Price​= $1,761

You might be interested in
If the M1 multiplier is 3 and the Fed engages in open-market purchases in the amount of $3 billion, then monetary base will Grou
zavuch27 [327]

Answer:

A

Explanation:

By definition, open-market operations change the monetary base.

In this exercise, the Fed engages in open-market purchases, which means that the Fed expands the amount of money in the banking system. Therefore the monetary base will increase by an amount equal to the amount of open-market purchases.

So monetary base will increase by $3 billion.

7 0
3 years ago
Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200
Vladimir79 [104]

Answer:

Amount of Check = $784

so correct option is a. $784

Explanation:

given data

Merchandise on account = $1,000

Long Company returns  = $200

credit terms =  2/10

n/30

to find out

What is the amount of the check

solution

we know here that Total Merchandise will be

Total Merchandise = Merchandise on account  - returns   ....................1

Total Merchandise = $1000 - $200

Total Merchandise = $800

and

discount will be here

Discount = 0.02  ×  800

returns = $16

so

Amount of Check will be as

Amount of Check = Total Merchandise - Discount   ...................2

put here value

Amount of Check = Total Merchandise - Discount  

Amount of Check = $800 - $16

Amount of Check = $784

so correct option is a. $784

7 0
3 years ago
A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an un
nlexa [21]

Answer:

Differentiation.

Explanation:

The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.

The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.

Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.

Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.

3 0
3 years ago
During October the plant produced 8,000 ingots and incurred the following costs: a. Purchased 33,000 pounds of materials at a co
goldfiish [28.3K]

Answer: Total Variable Costs = $110130

Explanation:

The question in incomplete. Requirements were not provided in the question, as a result it is not clear what the question requires us to do. We will assume the question requires us to calculate Total variable costs since There is nothing in the question that talks about fixed costs.

Total Variable Costs

Manufacturing costs

Direct Material Per pound = $2.95

Direct Material used  = 27800 pounds

Direct Material Cost = 27800 x 2.95 = $82010

Direct Labor

Direct Labor cost per hour = $6.20

Direct Labor hours = 3800

Direct Labour Cost = 3800 x $6.20 = $23560

Variable Manufacturing overhead cost = $4560

Total Variable Costs = Direct Material cost + Direct labor costs + Variable Manufacturing overhead

Total Variable Costs = $82010 + $23560 + $4560

Total Variable Costs = $110130

7 0
3 years ago
The real interest rate tells you Question 31 options: how fast the number of dollars in your bank account rises over time. how f
Elan Coil [88]

The real interest rate tells you how fast the purchasing power of your bank account rises over time.

<h3>What is meant by the real interest rate?</h3>
  • When a borrower pays back a loan with interest, the lender obtains a gain in purchasing power that is expressed as a percentage.
  • In the previous illustration, the lender made $8 on the $100 loan, or 8%.

<h3>What is real and nominal interest rate?</h3>
  • The real rate of a bond or loan is determined by adjusting a real interest rate to account for the impacts of inflation.
  • The interest rate before accounting for inflation is referred to as a nominal interest rate.

<h3>Why real interest rate is important?</h3>
  • Real interest rates are the main concern of economists.
  • Investors may be forced to take on greater risk or withdraw entirely depending on the real rate.
  • Without ever taking a dollar, it can drain your savings.
  • Every central bank in the world has it on their radar.

Learn more about real interest rate here:

brainly.com/question/6106690

#SPJ4

5 0
2 years ago
Other questions:
  • Find the slope of an assumed linear demand curve for garri, when Mr. Anthony purchase 1000 quantities at N200 per plastic and 50
    8·1 answer
  • Pandar Corp. issues 12-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if
    14·1 answer
  • Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on De
    5·1 answer
  • Jason wants to open a checking account with a ​$100 deposit. Jason believes he will write 15 checks per month and use other​ ban
    15·1 answer
  • Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures wer
    10·1 answer
  • To qualify for the moving expense deduction, an employee must change job sites, move a required distance, and change employers.
    13·1 answer
  • Table 1 contains information about a small business for one month. The business
    8·2 answers
  • Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the
    7·1 answer
  • Money ​'M​' and nonmonetary assets ​'NM​' are the only assets available in financial markets.
    13·1 answer
  • Connect the words below (In any order) and create an essay
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!