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
The Divirgil Company Net Income is $100. Given the following items:Purchase of debt securities (trading) $7Amortization of premi
Darya [45]

Answer:

a. $74

Explanation:

The computation in the change in cash for the year is shown below:

Net income                  $100  

Less: Purchase of Debt Securities  -$7  

Less: Amortization of Premium on Bonds payable  -$4  

Less: Purchase of Treasury Stock      -$5  

Less: cash Dividends paid            -$10 {($100 - $92) + $2}

Change in Cash          $74  

Hence, the correct option is A. $74

We simply deduct all the items from the net income so that the change in cash could come

3 0
3 years ago
Which of the following statements is correct? Select one: a. Supply curve A is perfectly elastic. b. Supply curve C is more inel
natali 33 [55]

The following statement supply curve A is perfectly elastic and supply curve B is perfectly inelastic are correct.

Explanation:

If there is no response from demand to prices and supply curve is vertical then the supply is perfectly inelastic.If there is more change in demand and very less change in price and supply curve is horizontal then the supply is perfectly elastic.

If the elasticity is greater than one that indicates high change in price known as Elastic supply. if the Elasticity is less than one that indicates low change in price then it is said to be Inelastic supply.

6 0
3 years ago
You are marketing manager for a company that packages and markets vacations to exotic locations. You use a variety of media to p
Readme [11.4K]

Answer:

integrated programs are usually way more effective than programs that are not integrated

Explanation:

According to my research on different marketing techniques, I can say that the efforts need to be integrated because integrated programs are usually way more effective than programs that are not integrated. This is because integrated efforts will reach a wider audience which will lead to more sales.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Why do we use trade barriers? What is the purpose?
vladimir1956 [14]

Reasons For Using Trade Barriers.  As for protecting domestic producers, some countries use trade barriers is to protect immature domestic producers and industries that cannot effectively compete with foreign products. Trade barriers makes imported goods and products less attractive than locally produced goods.                                                                                                                    

4 0
3 years ago
The partnership of X and Y shares profits and losses in the ratio of 60 percent to X and 40 percent to Y. For the year 20X8, par
kaheart [24]

Answer:

D. $ 600,000

Explanation:

if X's withdrawals = y

Net Income = 2y

X 's share of profit = 2y ×60%

                              = 1.2 y

X's Closing capital + X's withdrawals = Opening Capital + Share of Net income

$ 140000 + y = $ 80000 + 1.2y

1.2y - y = $ 140000 - $ 80000

           = $60000

0.20y = $ 60000

        y = $ 300000

Therefore,

Net Income = 2y

                    = 2×300000

                    = $ 600000

3 0
3 years ago
Other questions:
  • The following information pertains to Crane Company. 1. Cash balance per bank, July 31, $7,134. 2. July bank service charge not
    14·1 answer
  • Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to enter
    14·1 answer
  • Under the Uniform Securities Act, all of the following must be disclosed in an investment advisory contract EXCEPT A) other stat
    14·1 answer
  • 1. Compound interest is:
    15·1 answer
  • Ben Bradley started Bradley Company on January 1, Year 1. The company experienced the following events during its first year of
    10·1 answer
  • Please give a unique example of what you could realistically make a database for. Give examples of at least 5 lists that would b
    6·1 answer
  • There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and wate
    8·1 answer
  • Drag the tiles to the correct boxes to complete the pairs.
    12·1 answer
  • Calico Company has two operating departments: Department A and Department B. Department A occupies 30% of the floor space of the
    6·1 answer
  • Which of the following could result in higher living costs for the homeowner that the renter doesn’t have? a. Decreased proper
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!