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
Mars2501 [29]
3 years ago
12

The Yale Company has one bond outstanding. The bond has a $20,000 face value and matures in 20 years. The bond makes no interest

payments for the first 6 years, then pay $1,100 every six months over the next 8 years and finally pays $1,400 every six months over the last 6 years. The annual YTM is 5.6%. What is the price of this bond today
Business
1 answer:
natima [27]3 years ago
8 0

Answer:

$16,695.11

Explanation:

the price of the bond is equal to the present value of its cash flows:

value of cash flows in year 6 = $1,100 x 12.75523 (PV annuity factor, 16 periods, 2.8%) = $14,030.75

value of cash flows in year 14 = $1,400 x 10.07390 (PV annuity factor, 12 periods, 2.8%) = $14,103.46

present value in year 0 = [$14,030.75 / 1.056⁶] + [$14,103.46 / 1.056¹⁴] = $10,118.06 + $6,577.05 = $16,695.11

You might be interested in
A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will likely happen t
denis23 [38]

Answer:

Demand for the patent-holder's product will decrease when the patent runs out.

Explanation:

While there is a patent over a product, only the patent-holder's can sell that product. If there is a monopoly it means that that company is the only one that produce and sell this product.

When the patent run out new competitors will enter the business, so the demand on patents holders will decrease.

6 0
3 years ago
Who is responsible for the setup of speakers for a banquet
Elza [17]

Answer:

I think manager??????????

6 0
3 years ago
The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flo
kirill115 [55]

Answer:

B. False

Explanation:

Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.

8 0
3 years ago
6. How long does it take for the average new drug to be tested and approved for
tankabanditka [31]

Answer:

3 to 5 years.....only.....

5 0
3 years ago
Daniel acquires a 30% interest in the PPZ Partnership from Paolo, an existing partner for $43,000 of cash. The PPZ Partnership h
jolli1 [7]

Answer:

The right answer is a.

Explanation:

In order to calculate Daniel's basis in his partnership interest, first we have to calculate daniel share of the partnership liabilities.

According to the details, Daniel acquires a 30% interest in the PPZ Partnership from Paolo, and The PPZ Partnership has borrowed $14,000 of recourse liabilities as of the date Daniel bought the interest, hence

daniel share of the partnership liabilities = 14,000 * 30% = $4,200

Hence, Daniel's basis in his partnership interest= 43,000 + 4,200 = $47,200

4 0
3 years ago
Other questions:
  • C&A purchases fertilizer for its lawn-care business from a supplier who charges $30 per order and $50 per case. Each case co
    5·1 answer
  • Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media, and finally she dete
    6·1 answer
  • When Keisha started her new job, she went through ______ to help her transition and fit smoothly into the job and organization.
    7·1 answer
  • Eric believes works hard he will meet management's goals and that if he meets management's goals, he will get a raise, which he
    5·1 answer
  • At the Sunny Solutions Company, employees are involved in decision making and promised long-term employment. The employees follo
    10·1 answer
  • "Jason likes to drink a particular brand of soda and has been drinking that brand of soda for the last ten years. Lately, one of
    9·1 answer
  • If you use money as a unit of account, you would be___________.a. returning a sweater to the department store. b. searching the
    9·1 answer
  • Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% a
    15·1 answer
  • Piedmont Company segments its business into two regions - North and South.
    12·1 answer
  • Product recall is an example of: Select one: a. prevention costs b. appraisal costs c. internal failure costs d. external failur
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!