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azamat
3 years ago
14

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.7% annual coupon bonds at their par value of $1,000. Today,

the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity
Business
1 answer:
Maksim231197 [3]3 years ago
7 0

Answer:

Bond Price = $1115.075775 rounded off to $1115.08

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or market interest rate will be,

Coupon Payment (C) = 1000 * 0.067  = $67

Total periods (n) = 14  

r or YTM = 0.055  or  5.5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 67 * [( 1 - (1+0.055)^-14) / 0.055]  + 1000 / (1+0.055)^14

Bond Price = $1115.075775 rounded off to $1115.08

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Clara and Sandra collaborate to open a cafe. They come to an arrangement wherein Sandra manages the cafe from Monday to Wednesda
Shalnov [3]

Answer:

general partnership

Explanation:

General partnership -

It refers to the management of a particular business , by two or more partners in a predefined manner , where the profit is shares equally amongst the partners , is referred to as general partnership .

The decision about the business is taken along with all the partners ,like the financial decisions.

Any loss or profit is shares equally amongst all .

Hence , from the given scenario of the question ,

Sandra and Clara enters into a general partnership .

3 0
3 years ago
The cases filed at The Cross Company related to gender discrimination include one in which a 33-year-old sales representative wa
Romashka-Z-Leto [24]

Answer:

Title VII of the CRA

Explanation:

Title VII of the Civil Rights Act (CRA) is a landmark federal law that aims to protect employees against discrimination based on race, colour, sex, nation of origin, or religion.

The act was made law in 1964.

In the given scenario a female sales representative with excellent performance review was not promoted for 8 years, while Jim a male sales representative was promoted in just 18 months.

This is a gender based discrimination and is covered by Title VII of the CRA.

Age discrimination does not apply because it addresses discrimination of employees with minimum age of 40 years.

Equity act requires that employees on the same job role are compensated equally. This does not also apply.

Rehabilitation act prevents discrimination based on disability. This does not also apply

5 0
3 years ago
What are the benefits of using a credit card? What are the drawbacks of using a credit card?
Anon25 [30]
Benefits: You do not have to carry large amounts of cash with you


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hope this helps
6 0
3 years ago
Read 2 more answers
You have just received a windfall from an investment you made in a​ friend's business. He will be paying you at the end of this​
ohaa [14]

Answer:

a. $80,318.70

b. $97,568.57

Explanation:

Here is the full question :

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 15 comma 555 at the end of this​ year, $ 31 comma 110 at the end of next​ year, and $ 46 comma 665 at the end of the year after that​ (three years from​ today). The interest rate is 6.7 % per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $ 15,555

Cash flow in year 2 = $31,110

Cash flow in year 3 =  $ 46,665

I = 6.7%

Present value = $80,318.70

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

$80,318.70(1.067)^3 = $97,568.57

3 0
3 years ago
Generally speaking, oligopolistic industries producing raw materials and semifinished goods usually offer differentiated product
LenaWriter [7]

Answer:

B) False

Explanation:

The correct phrase should be:

Generally speaking, oligopolistic industries producing raw materials and semifinished goods usually offer standardized products, while oligopolists producing consumer goods usually offer differentiated products.

An example of an oligopolistic industry that we all know about is the car industry. There are very few car companies in the world since only very large companies can actually manufacture cars. Car companies offer differentiated products.

8 0
3 years ago
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