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
Nat2105 [25]
3 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]3 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

You might be interested in
Greg had selected 8 intervals total to service. He logged in on time for each interval, but ended up logging out 5
inysia [295]

Answer:

The resulting CA percentage for the week to the nearest number is 94%

Explanation:  

CA refers to Commitment Adherence.

Commitment Adherence (CA) is a way to calculate the reliability of an employee in relation to how much time they put into their work.

Put differently, it is a mathematical comparison between how much time you stated that you were going to work versus the actual amount worked. This concept is prevalent with people who use clock-in and clock-out system to measure productivity.

Step 1

The formula for calculating Commitment Adherence (CA) is:

(Serviced Minutes - Excused Non-Serviced Minutes) / (Posted Minutes + Released Minutes)

When you log out at about 5 minutes early it translates to 83% because each interval is 30 minutes. So 23/30 = 83%

Step 2

There are 8 intervals. 5 of them are 100% each. Thus total intervals for the week equal

(5*100%)+(3*83%) =

7.49 *30 = 224.7

Total number of intervals selected =

8*30 = 240

Therefore commitment adherence = 224.7/240

= 0.94%

Cheers!

6 0
3 years ago
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note to Lou who, in turn, indorses it to Mona, wh
STatiana [176]

Answer:

a. Jake, Kim, or Lou.

Explanation:

A promissory note is a note that should be signed with written promise in terms of paying some specific amount to the note owner on a specifiic date or on demand.

Since in the question it is mentioned that Jake who is a maker and pay to Kim and then it would endorse to Lou

So here the Mona should collect the payment from the above three parties

hence, the correct option is A.

7 0
3 years ago
North Division has the following information:
VLD [36.1K]

Answer:

due to elimination

income will decrease by $526000

Explanation:

Given data

Sales =  $1180000  

Variable expenses = $654000  

Fixed expenses =  $620000

to find out

incremental effect on net income

solution

we know here total sale is $1180000 and Variable expenses is  $654000

so contribution  if the division is dropped is sales - Variable expenses

put these value

contribution = 1180000 - 654000

contribution = 526000

so we say that due to elimination

income will decrease by $526000

5 0
3 years ago
You have just started your first job and are already planning for retirement. You plan on retiring in 31 years. To support your
Studentka2010 [4]

Answer:

$10,883

Explanation:

n = 31 years

Future value (FV) = 1,980,000 (The amount you need in 31 years for retirement)

i/r = 10% (given)

Present value (PV) = 0 (You have just started your job and have not reserved any amounts for retirement)

PMT (Monthly deposit needed) = ?

By using financial calculator, PMT = $10,883

4 0
3 years ago
Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Proje
liberstina [14]

Answer:

(a) Cash payback period:

     Project Red = 5.5 years

     Project blue  = 4.6 years

(b) Net present value for project Red = $19,760

     Net present value for project Blue =$164,580

(c) Annual rate of return:

Project Red =11.36%

Project Blue  =18.75%

(d) Project Blue

Explanation:

Given Data;  

Project Blue Capital investment = $640,000

Project Red Capital investment = $440,000

Project Red  Annual Net income = $ 25,000.

Project Blue Annual Net income = $ 60,000

Annual depreciation Project Red = (440000/8)

                                                       = 55,000

Annual depreciation Project Blue = (640000/8)

                                                       =  80,000

Annual cash inflow project A = $ 80,000

Annual cash inflow project B = $140,000

(a)

Cash payback period = Initial investment/cash flow per period

Project Red = 440000 /80000

                   = 5.5 years

Project blue = 640000/ 140000

                    = 4.6 years

(b)

Project Red  Present value of cash inflows = 80000 ×5.747

                                                                       = $459,760

Project Blue Present value of cash inflows  =140000×5.747

                                                                        = 804580

Net present value for project Red = $459,760 - $440,000

                                                        = $19,760

Net present value for project Blue = 804580 - $640,000  

                                                         =$164,580

(c) Annual rate of return:

Project Red   = $25,000 / ($440000)/2

                       =11.36%

Project Blue =  $60000/(640000/2)

                    =18.75%

(d) Savanna should select Project Blue because it has a higher positive NPV and a higher annual rate of return. AND Project Blue has early cash back period also

6 0
3 years ago
Other questions:
  • How does the Open Market Trading Desk conduct its​ operations? A. by sending its buy and sell orders to the U.S. Treasury for ex
    13·1 answer
  • On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had
    9·1 answer
  • What are the steps to teach your horse to show jump?
    14·1 answer
  • List 5 common advertising techniques.
    15·1 answer
  • Consider the economy of Freeland, whose overall actual price index and actual output are P and Y respectively, and the natural r
    11·1 answer
  • Company A has a beta of 0.70, while Company B's beta is 1.20. The required return on the stock market is 11.00%, and the risk-fr
    12·2 answers
  • A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen
    10·1 answer
  • Firestone Tires recently paid an annual dividend of $2.00 on its common stock. This dividend increases at an average rate of 3.8
    13·1 answer
  • When comparison shopping, all of these hint at a good deal EXCEPT
    15·1 answer
  • Which method would interest groups most likely use to help shape public policy? enacting regulations to enforce their goals hiri
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!