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
Firms prefer FDI to licensing because FDI_____.
Neko [114]

Answer:

B) provides the firm with direct ownership to its foreign assets

Explanation:

When a multinational enterprise (MNE) is considering investing in foreign country they usually decide to do it through foreign direct investment (FDI). They do this because FDI ensures that the MNE is the direct owner of the assets and can freely decide what to do with them.

5 0
3 years ago
List four factor you should consider when selecting a financial institution
DanielleElmas [232]

Answer:

▪︎Products and Services That Fit Your Needs.

▪︎Security for Your Money.

▪︎Convenient Access to Your Cash.

▪︎Minimal Fees.

Explanation:

3 0
2 years ago
Choose all that apply.
denpristay [2]

reasons:

safe

high interest rates

no fees

5 0
3 years ago
The passage is primarily concerned with(A) evaluating a method used to test a particular scientific hypothesis(B) discussing exp
oksian1 [2.3K]

Answer:

The correct answer is (B) discussing explanations for an unexpected scientific finding.

Explanation:

A serendipity is a discovery or a fortunate, valuable and unexpected finding that occurs accidentally, by chance or by destination, or when a different thing is being sought. It can also refer to the ability of a subject to recognize that he has made an important discovery even if it is not related to what he is looking for. Serendipities are frequent in the history of science. There are also cases of serendipity in literary works, when an author writes about something he has imagined and is not known in his time, and it is subsequently shown that this exists as defined by the writer, with the same details. It should not be confused with anticipation or science fiction, where much more generic inventions are advanced than almost everyone thinks they will probably exist one day.

6 0
3 years ago
Breakwater Aquatics has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the firs
LenaWriter [7]

Answer:

The accounts receivable balance at the beginning of the third quarter is $3,550

Explanation:

For computing the account receivable balance, first, we have to compute the credit sale per day, and then multiply with the number of days

In mathematically,  

Credit sale per day = (Estimated second Quarter Sales) ÷ (accounts receivable period up to second quarter)

= $7,100 ÷ 90 days

= 78.89

Now the account receivable balance equals to

= Credit sales per day × accounts receivable period

= 78.89 days × 45 days

= $3550

Since the question is asking about the beginning of the third quarter so we considered second quarter sales

5 0
3 years ago
Other questions:
  • What occurs immediately after a boom in the business cycle?
    11·1 answer
  • 1. According to the Small Business Administration, the percentage of businesses that
    15·2 answers
  • What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3
    7·1 answer
  • The beliefs, attitudes, and behavior associated with a person or group; a way of life.
    12·1 answer
  • Xavi is a painter of landscapes and seashore portraits. He works outside and has no overhead or fixed costs such as a studio. In
    5·1 answer
  • Which of the following is necessary to resolve conflict? A. patience with the conflict resolution process B. willingness to enga
    14·2 answers
  • Plz help :)
    7·1 answer
  • Select the items that describe a consumer.
    15·2 answers
  • according to the efficient markets hypothesis, the number of people who think a stock is overvalued exactly balances the number
    6·1 answer
  • when the fed buys government bonds, group of answer choices the money supply decreases and the federal funds rate decreases. the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!