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motikmotik
3 years ago
13

Lycan, Inc., has 7.9 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and h

ave a par value of $1,000. If the YTM on these bonds is 9.9 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price
Business
1 answer:
eimsori [14]3 years ago
5 0

Answer:

$912.68

Explanation:

Particulars                      Time  PVF at 9.9%   Amount   Present Value

Cash Flows (Interest) 1.00        0.9099       79.00             71.88

Cash Flows (Interest)    2.00        0.8280       79.00             65.41

Cash Flows (Interest)    3.00        0.7534        79.00             59.52

Cash Flows (Interest)    4.00        0.6855        79.00            54.15

Cash Flows (Interest)    5.00        0.6238        79.00            49.28

Cash Flows (Interest)    6.00        0.5676        79.00            44.84

Cash flows (Maturity)    6.00        0.5676      1,000.00         <u>567.60</u>

Intrinsic Value of Bond or Current Bond Price                  $<u>912.68</u>

Thus, the Current bond price is $912.68

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"Putting one’s name on a stadium can be an expensive proposition, and the prices continue to increase. Discuss whether this woul
Flura [38]

Answer:

Yes

Explanation:

Yes, this is normally a good investment for a company but some factors do need to be considered. The first one being, whether or not the product/service you are going to promote has a customer base within the population of visitors to the stadium. If so, then you need to consider how big this targeted audience is and if a small portion of these individuals purchases your product will it cover the costs of the investment. On average, a stadium holds roughly 70,000 individuals, multiply this by the number of events in the stadium during the time period of your ad and you can get an idea of the number of individuals that will be exposed to your ad and whether or not it is worth it for the company. Yet, on average it is usually a good investment.

3 0
3 years ago
During Year 1, Hardy Merchandising Company purchased $24,000 of inventory on account. Hardy sold inventory on account that cost
finlep [7]

Answer:

I have attached an Excel Sheet that identifies all the events that need to be accounted for. If you have any queries regarding the Journal Entries, please free to ask me that.

B) The Balance of Accounts Receivable at Year End is $3,000.

Explanation:

Hardy Merchandising Company made Sales of $27,000 on account, out of which $24,000 were collected during the year. So, at the year end the Balance Sheet will show a figure of $3,000 for Accounts Receivable.

Thank You!

Download xlsx
4 0
3 years ago
Genova Corporation has a four year 10% annual coupon bond. The price of the bond is $956.12. The Yield to Maturity is 11.43%. Wh
lbvjy [14]

Answer:

10.46%

Explanation:

Data provided in the question

NPER = 4 years

Price of the bond is $956.12

Yield to maturity is 11.43%

Coupon rate = 10%

We assume the face value be $1,000

So the coupon payment is

= Face value × Coupon rate

= $1,000 × 10%

=  $100

Now the current yield on this bond is

= Coupon payment ÷ Price of the bond

= $100 ÷ $956.12

= 10.46%

8 0
3 years ago
Mario Dean owns a Wendy's franchise. Mario feels that the franchisor is hurting his business by forcing him to use certain high-
Katarina [22]

Answer:

National Franchise Mediation program ( D )

Explanation:

The National Franchise Mediation program is charged with the responsibility of resolving disagreements/issues arising in the Franchise system of business between the Franchisor ( owner of the business name ) and the Franchisee ( buyer of the business name ) outside the court of law.

The National Franchise mediation program will arbitrate the dispute between Mario Dean and Wendy by listening to the various complaints that would be reported by both Wendy and Mario Dean before giving out a fair , just and impartial ruling on the dispute brought before it. the National Franchise Mediation program is a very vital program for the survival of the Franchise system of business.

8 0
3 years ago
___________ encompasses all the activities required to get the right product into the right consumers hands in the right quantit
Verdich [7]

Answer:

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Explanation:

To complement the definition, supply chain management (SCM) tracks materials, information and finances during the process that goes from the supplier to the manufacturer, the wholesaler, the retailer, and the consumer. Supply chain management involves the coordination and integration of these flows, both within the same company and between different companies. It is said that the main objective of any effective supply chain management system is the reduction of inventories (assuming that the products are available when necessary). To offer optimal supply chain management solutions, there are currently sophisticated software systems with Web interfaces competing with Web-based application service providers (ASP) that are committed to providing part or all of the SCM service to Companies that hire their services.

------

NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

6 0
3 years ago
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