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irakobra [83]
3 years ago
13

Navistar Electric issued 1000 debenture bonds 2 years ago with a face value of $5,000 each and a bond interest rate of 15% per y

ear payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year compounded semiannually, determine the present worth today of one bond.
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

$7,081.25

Explanation:

Face value = 5000

Coupon = 15% paid annually. Semi annual payment = 750/2 = 375

Time to maturity = 18 years

Interest rate = 10% compounded semi-annually

P = 375(P|A, 5%, 36) + 5000(P|F, 5%, 36)

P = 375(16.58131488) + 5000(0.17265193)

P = 6217.99308 + 863.25965

P = 7081.25273

P = $7,081.25

So, the present worth of one bond today is  $7,081.25

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3 0
2 years ago
A business that purchases products in large quantities from producers and then sells it to another entity is known as a _____.
BigorU [14]
A business that purchases products in large quantities from producers and then sells it to another entity is know as a distributor. 

Distributors, distribute items to smaller retailers normally. They work as a warehouse with large quantities to sell to others in smaller quantities. 
7 0
3 years ago
Which of the following are characteristics of effective government leaders? Select all that apply.
pentagon [3]

Answer:

the ones that apply are:

a) Willingness to accept responsibility.

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Explanation:

5 0
3 years ago
hen entry barriers into a market are low, firms will tend to earn zero economic profit in the long run because a. profit-seeking
tamaranim1 [39]

Answer:

The correct answer is B

Explanation:

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When the entry barriers in the market are low, then the firm will have the tendency of having a zero economic profit in the period of long run, as the profit which is short run will attract the extra suppliers which will result in down in the market price of the product.

3 0
3 years ago
Zouar Computer Corporation currently manufactures the disk drives that it uses in its computers. The costs to produce 5,000 of t
iogann1982 [59]

Answer:

Net profit $15,000  

Explanation:

Total Cost Saving and Benefit of Buying outside  

Total Cost Other than fixed cost               $95,000  

($12 + $2 + $5) × 5,000    

Fixed cost                                                     $15,000

($3 × 5,000)

Additional income                                        $40,000  

Total saving                                                 $1,50,000  

Cost Of buying                                             $1,35,000  

($27 × 5,000)    

Net Benefit                                                   $15,000

($150,000 - $135,000)

6 0
4 years ago
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