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
muminat
2 years ago
7

Air Destinations issues bonds due in 10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments

are made semi-annually. The market rate for this type of bond is 12%. Using present value tables, calculate the issue price of the bonds
Business
1 answer:
olga nikolaevna [1]2 years ago
8 0

Answer: $471,324.61

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value at maturity

Coupon payments = 500,000 * 11% * 1/2 years = $27,500

Periodic yield = 12%/ 2 = 6% per semi annual period

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.

Price of bond = Present value of annuity + Present value of face value at maturity

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰

= $471,324.61

You might be interested in
Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales. According to asset intensity, for ever
kotegsom [21]

It is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

<h3>What is asset intensity?</h3>

The asset or capital intensity is a measure of the amount of assets needed to produce some dollars of sales revenue.

The asset intensity ratio is obtained by dividing the total assets by sales.

Thus, it is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

Learn more about the capital intensity ratio at brainly.com/question/13887805

#SPJ1

6 0
2 years ago
Research studies indicate that:
dezoksy [38]

Answer:

A)

Explanation:

Research studies indicate that U.S. producers gain more from tariffs than U.S. consumers lose. This is mostly because many intermediaries must pay various different tariffs including the consumer which all go to the producers, and therefore allowing the producers to gain more from the tariffs that the U.S. consumers will spend paying them.

8 0
2 years ago
Sales mix is a measure of the percentage increase in sales from period to period.
Degger [83]
False ...................
7 0
3 years ago
A former client of charlie hayes, cpa, filed a lawsuit in state court alleging that charlie failed to exercise due care in the p
Anestetic [448]

<span>Yes because the AICPA standard for due care does not require CPAs to be infallible. Since the definition of infallible means incapable of making a mistake. Which this is not necessarily true. CPAs are capable of making mistakes and as long as they performed their work with professional due care then they cannot be held accountable for mistakes that may have happened. </span>

8 0
3 years ago
Read 2 more answers
Ram said to me "Dont stand up" .(into indirect speech)​
kupik [55]

ram.asked me not to stand

4 0
2 years ago
Read 2 more answers
Other questions:
  • A large computer company was well known for the frequent debate among employees regarding various issues. Employees weren't afra
    6·1 answer
  • As noted in your text, which of the following ranks as the top unethical behavior by employees as reported by chief marketing of
    12·1 answer
  • A _________ approach actually schedules, in detail, each resource using the setup and runtime required for each order.
    14·1 answer
  • Most people report higher levels of personal satisfaction by giving of their time rather than giving money to a charity
    15·1 answer
  • Tamarisk, Inc. had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 94 $94 Mar. 14,
    7·1 answer
  • For human resource practices to be considered ethical, they must result in the greatest good for the largest number of people. T
    5·1 answer
  • Call centers offering technical support for American products have been moved to India to take advantage of lower labor costs. T
    12·1 answer
  • Increase the selling price
    6·1 answer
  • Extra Sandwiches, a sandwich chain, experiments with offering a free bag of chips with its sandwiches in the South to try out it
    13·1 answer
  • If an organization wanted to improve employee involvement, efficiency, and customer satisfaction, what kind analysis might they
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!