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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

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4 0
4 years ago
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost
OLga [1]

Answer:

"Ordering" is the correct solution.

Explanation:

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3 0
2 years ago
Because resources are scarce, if society produces more of one commodity, it has to sacrifice some amount of another commodity. T
ycow [4]

Answer:

C.  the opportunity cost

Explanation:

The opportunity cost -

It refers to the amount of benefit received by the business , investors or an individual , during the process of selecting any alternative , is referred to as the opportunity cost .

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8 0
3 years ago
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When identifying the sources of ineffective performance, managers often: a. ignore external conditions an employee faces. b. ign
AlekseyPX

Answer:

Correct option is D

When identifying the sources of ineffective performance, managers often <u>attribute poor performance to a lack of ability of individual performers.</u>

Explanation:

The principle explanation for this low capacity of a solitary individual is on the grounds that the activity doled out to them doesn't coordinate with their capacity.

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Double-declining balance On January 1, 2021, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its
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Answer:

$18,480

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