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
Tomtit [17]
3 years ago
6

issued $200,000 of 10-year bonds on January 1. The bonds pay interest on January 1 and July 1 and have a stated rate of 10 perce

nt. If the market rate of interest at the time the bonds are sold is 12 percent, what will be the issuance price of the bonds (pick the closest answer)?
Business
1 answer:
just olya [345]3 years ago
6 0

Answer:

$177,060.16

Explanation:

The issuance price of the bonds is also known as the current price of bonds and in the bond calculation we refer this as the Present Value or PV.

Using a financial calculator, PV of the Bond is determined as :

FV =  $200,000

N = 10 x 2 = 20

P/YR = 2

PMT = ($200,000 x 10%) ÷ 2 = $10,000

I/YR = 12 %

PV = ??

Thus,

The PV is determined as $177,060.16

therefore,

The issuance price of the bonds is $177,060.16

You might be interested in
_______is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost o
Sonja [21]

Predatory Pricing is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.

<h3><u>Explanation:</u></h3>

hen there is a situation in the market whereby the products are sold at a cost very low than the cost of other suppliers refers to the predatory pricing. When predatory pricing is practiced then the suppliers with lower price will alone survive in the market making all the other suppliers to forcefully leave the market.

This kind of act is illegal. This is because predatory pricing will eradicate the competition. The main aim of this type of pricing is to eliminate the small business from the market. In the given scenario, a foreign producer is selling its products intentionally at lower price in U.S for the lower cost than the cost of production and takes the market to its control which is an example of Predatory Pricing.

4 0
3 years ago
Brainliest and 40 pts!!! Does my answer work for this question?
anyanavicka [17]

You don't need to cha Change a thing, that will be the best move if I were to be in your position

6 0
2 years ago
According to 1968 research by Ball and Brown, securities markets fully adjust to earnings announcements _______.A. instantlyB. i
Shtirlitz [24]

Answer:

D. gradually over time

Explanation:

According to 1968 research by Ball and Brown, securities markets fully adjust to earnings announcements gradually over time

6 0
3 years ago
Current labor market trends include _____.answer.com
miv72 [106K]

an increase in service jobs accompanied by a decrease in manufacturing jobs

3 0
3 years ago
A bond with 16 years to maturity and a semiannual coupon rate of 4.93 percent has a current yield of 5.29 percent. The bond's pa
zhannawk [14.2K]

Answer:

Price of bond= $1,922.92

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>

Value of Bond = PV of interest + PV of RV  

Semi-annual interest = 4.93% × 2,000 × 1/2 =49.3

Semi-annual yield = 5.29%/2= 2.65%

PV of interest payment

PV = A (1- (1+r)^(-n))/r

A- 49.3, r-0.02645, n- 16×2

= 49.3× (1-(1.02645)^(-10)/0.02645)  

= 1,055.521

PV of redemption Value

<em>PV = F × (1+r)^(-n) </em>

F-2000, r-0.02645, n- 16 ×2

PV = 2,000 × 1.02645^(-16×2)

PV = 867.402

Price of Bond  

1055.52  + 867.40 =1,922.92

= $1,922.92

4 0
3 years ago
Other questions:
  • Assuming Net Income for the year is $115,000, what is the net operating cash flows given the following information: Increase in
    11·1 answer
  • A(n) ____________ goal can be vulnerable to encouraging employee temptation toward dishonesty and to behave unethically if that
    10·1 answer
  • On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on February
    15·1 answer
  • A project requires an initial investment of $60,000 and has a project profitability index of 0.329. The present value of the fut
    5·1 answer
  • Assume that the risk-free rate is 3.5% and the market risk premium is 6%. 1. What is the required return for the overall stock m
    14·1 answer
  • Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net.
    7·1 answer
  • You estimate your annual revenue to be 50,000 + 20,000y, where y is the number of years in business. What is your estimated reve
    13·1 answer
  • What would wages look like if there was no minimum wage?
    7·1 answer
  • Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production da
    9·1 answer
  • A _____ is an individual who accepts a fee to falsely claim ownership to a property.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!