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
liq [111]
3 years ago
10

Whatever, Inc., has a bond outstanding with a coupon rate of 5.87 percent and semiannual payments. The yield to maturity is 6.9

percent and the bond matures in 13 years. What is the market price if the bond has a par value of $1,000?
Business
1 answer:
leonid [27]3 years ago
6 0

Answer:

Market price of the bond = $912.53

Explanation:

YTM = 6.90%

Coupon rate = 5.87%

Number of compounding per year = 2

YTM Per perid = 0.0345

Years = 13

Number of period = 26 (Nper)

Par value = 1,000

Semi annual coupon rate = 0.02935

The semi annual coupon payment = Par value * Semi annual coupon rate = 1,000 * 0.02935 = $29.35

Market price of the bond = PV(YTM, Nper, Semi annual coupon payment,Par value)

Market price of the bond = $912.53

You might be interested in
What is nursing ?why is it needed?​
Free_Kalibri [48]

Answer: What type of nursing?

3 0
3 years ago
Read 2 more answers
When should supplies be recorded as an expense?
Crazy boy [7]

Answer:

Supplies should be recorded as an expense when it is used up during an accounting period.

Explanation:

Supplies which is also refers to as office supplies can be described as consumables and equipment which are used from time to time by company. Examples of office supplies include printer paper, pencils, notebooks, binders, pens and among others.

When supplies are bought before they are used, they are recorded as office supplies by adding them to office supplies on hand at the beginning of to obtain total supplies for an accounting period under the current asset in the balance sheet. Any part of the office supplies used up during an accounting period is recorded an expense during that accounting period in the income statement. The part used is deducted from the total supplies obtained supplies on hand at the an accounting period to be recorded under the current asset in the balance sheet.

Therefore, supplies should be recorded as an expense when it is used up during an accounting period.

7 0
3 years ago
The forces of love, affection, guilt, fear, or passion that compel consumers to buy
barxatty [35]

Answer:

food

Explanation:

what is the question

6 0
2 years ago
The use of debt in the firm's capital structure will increase ROE if the firm:_____.
DIA [1.3K]

Answer: c. earns a higher return than the rate paid on debt.

Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

8 0
3 years ago
T. Hillcrest Co. sold $500 of merchandise on a bank credit card with a 5% fee. The entry to record this sales transaction would
Rufina [12.5K]

Answer:

Cash for $475 and Credit Card Expense for $25

Explanation:

Cash for $475 and Credit Card Expense for $25

8 0
2 years ago
Other questions:
  • Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial
    8·1 answer
  • Also for business class polling: why don't people like selena gomez, gigi hadid and taylor swift
    7·2 answers
  • The Great Depression changed attitudes toward the labor movement.
    8·2 answers
  • L Corporation produces and sells 15,100 units of Product X each month. The selling price of Product X is $21 per unit, and varia
    7·1 answer
  • Robert Cassidy wants to deposit the following into his savings account: 28 one-dollar bills, 4 five-dollar bills, 16 quarters, 1
    12·1 answer
  • An economics system in which consumers vote with their dollars to answer what is produced and how it is produced is known as ___
    13·2 answers
  • Ted earned $150,000 during the current year. He paid Alice, his former wife, $75,000 in alimony. The couple divorced in 2016. Un
    7·1 answer
  • Returns and Actions Kunal Nayyar from London, had $60,000 in investments in the USA at the beginning of the year that consisted
    8·1 answer
  • A taxi crashed into a telephone pole. The taxi's passenger commenced a negligence action against the taxi driver, properly servi
    15·1 answer
  • Concord Corporation is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Concord made
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!