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
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

You might be interested in
The following information is from the 2015 records of Armand Camera Shop: Accounts Receivable, December 31, 2015 $40,000 (debit)
german

Answer:

$5,250

Explanation:

The computation of the bad debt expense for year 2015 is shown below:

= Net Credit sales × uncollectible percentage given

= $175,0000 × 3%

= $5,250

Under the percent-of-sales method, simply we multiplied the net credit sales by the uncollectible percentage given so that the bad debt expense could have come. All other information given is of no significance. So, ignored it

3 0
3 years ago
Badger corp. declared a stock dividend to all shareholders of record on march 25 of this year. shareholders will receive one sha
Maru [420]
<span>Answer to part a of this question is "The stock dividend is not taxable because it is pro rata to all the shareholders."

</span>Answer to 2nd question is "The new stock is allocated part of the tax basis of the old stock based on relative fair market value.
After the stock dividend, Madison will own 1,100 shares of Badger stock (1,000 + 1,000/10), each with the same fair market value.
Her basis in each <span>share of stock will be $91, computed as (1,000 shares x $100 basis) / 1,100."</span>
3 0
3 years ago
Read 2 more answers
A postsecondary school that does not have a set of admission requirements such as a minimum GPA or test scores is called a(n):
mafiozo [28]
Open college im pretty sure. Hope i helped

8 0
3 years ago
_____ refers to management of the network of facilities and people that obtain materials from the outside, transform them into p
liubo4ka [24]

Answer: supply chain management

Explaination:

Supply chain management is define as the management of the flow of goods and services and it includes all processes that transform raw materials into final products. It also involves the active streamlining of a business's supply-side activities to gain a competitive advantage in the market.

Supply chains cover all steps from production to product development to the information systems that is needed to direct these undertakings.

3 0
3 years ago
A car dealer promises to give a $5,000 bonus to the first salesperson who sells 10 cars this week. Which type of contract is thi
Annette [7]

Answer:

Unilateral contract

Explanation:

According to the given statement in the question, this is a type of a unilateral contract.

The unilateral contract is a type of contract in which only a single party makes the promises or undertakes the tasks or the responsibilities in return to the task or an act performed by the second party.

Here,

The car dealer is promising the salesperson to give bonus upon the selling of 10 cars by the salesperson.

5 0
3 years ago
Other questions:
  • Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for distribution in the United States
    8·1 answer
  • Suppose that a surfboard designer owns a building and is renting part of the building's space to a spa. Further suppose that bec
    7·1 answer
  • Calaf’s Drillers erects and places into service an off-shore oil platform on January 1, 2018, at a cost of $10,000,000. Calaf is
    9·1 answer
  • The __________ method sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the
    13·1 answer
  • County Ranch Insurance Company wants to offer a guaranteed annuity in units of $500, payable at the end of each year for twenty-
    12·1 answer
  • Chinchilla, Inc. uses activity-based costing. The company produces X and Y. Information relating to the two products is as follo
    12·1 answer
  • Lee's Furniture just purchased $24,000 of fixed assets that are classified as 5-year MACRS property. The MACRS rates are 20 perc
    6·1 answer
  • You purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a pric
    6·1 answer
  • An internal study by the Technology Services department at Lahey Electronics revealed company employees receive an average of 6.
    5·1 answer
  • Ken has always been a nonresident of California. On March 1, 2019, he sold a California rental property in an installment sale.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!