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Nat2105 [25]
2 years ago
10

Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 2

7 years remaining to maturity, and has a current yield to maturity (discount rate) of 15 percent. (Round your answer to 2 decimal places and record without dollar sig
Business
1 answer:
Dovator [93]2 years ago
8 0

Answer: $413.81

Explanation:

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

Coupon is a constant payment so is an annuity.

Coupon = 6% * 1,000 = $60

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

= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)

= (60 * 6.514) + (1,000 / (1 + 15%)²⁷

= $413.81

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You can purchase an item you need for a project for $10,000 and it has daily operating costs of $500, or you can lease the item
aleksandr82 [10.1K]

Answer:

On the 50th day, the purchase cost will be equal to the lease cost

Explanation:

Given that:

  • Daily operating costs of $500
  • Purchasing cost for the item:  $10,000
  • Lease amount: $700

Let x is the number of days the purchase cost be the same as the lease cost. As we now that:

The total cost should be equal to the total lease received

<=> 10,000 + 500x = 700x

<=> 200x = 10000

<=> x = 50

Hence, on the 50th day, the purchase cost will be equal to the lease cost

3 0
3 years ago
Alternative A would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and var
stepladder [879]

Answer:

From zero to 33 boats option B would be best

Explanation:

Assuming the first alternative (A)is 250,000 fixed and 500 per boat

second (B) 2,500 cost per boat

and third (C) 50,000 fixed and 1,000 cost per boat

We want' to know at which level B would be the best option

we want to know when alternative C or A have a cost of 2,500 or lower:

A:

500 + \frac{250,000}{Q} = 2,500

\frac{250,000}{2,500 - 500} = Q

Q = 125

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B

C:

1,000 + \frac{50,000}{Q} = 2,500

\frac{50,000}{2,500 - 1,000} = Q

Q = 33.33

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B

From zero to 33 boats option B would be the best of the three options

6 0
2 years ago
Which of the following is an example of an economic change brought about by globalization
finlep [7]

Answer:

D) increases in the outsourcing of labor

Explanation:

Globalisation is the process by which business develop operations internationally. It involves integration of people, business and governments.

Outsourcing of labor involve hiring of manpower outside an organisation to carry out some job functions.

Because of the variety of talent available globally, and the reduced overhead costs, more businesses are outsourcing job functions.

3 0
2 years ago
A typing instructor builds a regression model to investigate what factors determine typing speed for students with two months of
Mnenie [13.5K]

Answer:

bruh jjnjn

Explanation:

bruh

j

3 0
2 years ago
Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock
shepuryov [24]

Answer:

$13,000,000

Explanation:

Given that,

Total Book Value of Equity = $20,000,000

Common stock outstanding = 1,000,000 shares

Selling price per share = $33.00

Market value of equity:

= Selling price per share × Shares outstanding

= $33.00 × 1,000,000

= $33,000,000

O'Brien's MVA:

= Market value of equity - Total Book Value of Equity

= $33,000,000 - $20,000,000

= $13,000,000

3 0
2 years ago
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