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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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Answer:

1) Value of supply

2) Value of demand

Explanation:

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6 0
2 years ago
Explain demand of money​
krek1111 [17]

Answer:

In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments. It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3.

Explanation:

7 0
3 years ago
Diana Mark is the president of ServicePro, Inc, a company that provides temporary employees for not-for-profit companies. Se rvi
Reil [10]

Answer: Please see explanation column for answers

Explanation:

1.To record the Purchase of office supplies on account.

Date         Account titles and explanation         Debit         Credit

April 2                Office Supplies                         $900

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2.To record performed services on account

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April 5            Accounts Receivable                  $4,600

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Date         Account titles and explanation         Debit            Credit

April 8         Accounts Payable                           $330

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4.To record Payment of  advertising expense for cash

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April 8         Advertisement expense                 $800

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5.To record the Purchase equipment for cash

Date         Account titles and explanation         Debit           Credit

April 9                Equipment                              $3,100

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Date         Account titles and explanation         Debit            Credit

April 10             Wages Expenses                      $2,000

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April 11           Cash                                               $1,800

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April 13        Office Building ( 1700 x$40)          $68,000

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April 14         Accounts Receivable                  $2,800

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11. To record unpaid utilities bill to be paid in the next month.

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April 15           Utilities expense                          $700

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7 0
3 years ago
if this economy is currently producing at point c then the opportunity cost of providing 100 additional units of medical care wo
Kisachek [45]

The correct option is:  B.

The opportunity cost of providing 100 additional units of medical care would be 400 warheads.

<h3>What is opportunity cost?</h3>

According to microeconomic theory, an activity's opportunity cost is the value or advantage that would be lost if it were chosen over another that would provide a higher return on investment.

<h3>What is opportunity cost and example?</h3>

When economists speak of a resource's "opportunity cost," they are referring to the cost of the next-highest alternative usage of that resource.

For instance, if you spend time and money going to the movies, you are not allowed to read a book at home during that time or spend the money on anything else.

To know more about opportunity cost visit:

brainly.com/question/17373709

#SPJ4

I understand that the question you are looking for is:

Refer to the figure below. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be:

Select one:

a. 800 warheads.

b. 400 warheads.

c. 200 warheads.

d. 100 warheads.

3 0
2 years ago
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Julli [10]

Answer:

$225

Explanation:

Remember, the interest rates of a loan are spread out equally each month.

Therefore, we calculated the value of the total interest in dollars for a year:

30,000/100 x 9 = $2,700 (annual interest in dollars)

Next, we divide the annual interest in dollars by 12 to get the value from the first month:

$2700/12= $225 (First month interest in dollars)

4 0
3 years ago
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