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
erastova [34]
3 years ago
10

10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments are made semi-annually. The market r

ate for this type of bond is 12%. Using present value tables, calculate the issue price of the bonds
Business
1 answer:
IrinaVladis [17]3 years ago
7 0

Answer:= $471,325

Explanation:

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

Coupon payments = 500,000 * 11% * 1/2 years = $27,500  

Periodic yield = 12%/ 2 = 6% per semi annual period  

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.  

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

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods  

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰  

= $471,325

You might be interested in
Suppose government belives the simple Keynesian model is descriptive of the current economy. Conress wants to lower Real Gdp by
vichka [17]

Answer:

d. None of the above

Explanation:

if the marginal propensity to consume = 0.80, the Keynesian's multiplier = 1 / (1 - MPC) = 1 / (1 - 0.8) = 1 / 0.2 = 5

that means that if Congress wants to decrease real GDP by $100 billion and the Keynesian's multiplier is 5, then it should raise taxes by $20 billion. This way -$20 billion (taxes take away money from the economy) x 5 = -$100 billion.

8 0
2 years ago
Think of the products you use on a daily basis and think of the types of utility. What is a product that you use on a daily basi
natima [27]

Answer:

My Phone

Explanation:

Flaw: Its picture quality isn't that good and it doesn't have a 4G

Solution: its manufacturers should improve more on production of new phones that will have 4G and a good camera.

Utility added: Possession utility

4 0
2 years ago
What is progressive discipline
andrezito [222]

The process of using increasingly severe steps when an worker fails to correct a problem although being given a reasonable opportunity to do it.

5 0
2 years ago
Read 2 more answers
According to the leadership grid developed by Blake and Mouton, which management style reflects moderate concern for production
sergiy2304 [10]

Answer:

Middle-of-the-road management

Explanation:

Middle - of - the - road management -  

It refers to the leadership style , which is plotted in the center of the grid , and the balanced concern between people and production is observed , is referred to as the Middle-of-the-road management .  

These type of leaders helps to settles the average performance by the employees.  

Hence, from the given information of the question,

The correct term is Middle-of-the-road management .

7 0
3 years ago
jonathan is a photographer. he has been hired by a company to shoot an advertisement for their product. which role does Jonathan
Molodets [167]
Hey there,

Your question/statement reads: <span>Jonathan is a photographer. he has been hired by a company to shoot an advertisement for their product. which role does Jonathan play in the advertising process for the product.

Based on the small excerpt above, I believe the Jonathan would be played as the (boss) in a way. It said on how he advertised and he also hired people. So he would be the (boss/leader) of this. And also, he would be the owner of this product.

Hope this helps.
~Jurgen</span>
8 0
3 years ago
Read 2 more answers
Other questions:
  • At the beginning of the year (January 1), Buffalo Drilling has $10,000 of common stock outstanding and retained earnings of $7,5
    9·1 answer
  • Machinery was purchased for $500000 on January 1, 2022. Freight charges amounted to $13000 and there was a cost of $32000 for bu
    14·1 answer
  • What is not Likly to be a major problem for business during a period of ongoing inflation?
    11·2 answers
  • On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30,
    14·2 answers
  • Heather normally uses a popular brand of cosmetics, but recently started having problems anytime she wears the makeup. At the dr
    5·2 answers
  • Which of the following is a downside of a newspaper ad?
    10·2 answers
  • If a stock's market price exceeds its intrinsic value as seen by the marginal investor, the the investor will sell the stock unt
    14·1 answer
  • A builder from State A sued a homeowner from State B for breach of contract in federal court, alleging that the homeowner failed
    14·1 answer
  • Assume the account number for income summary is 901.2
    9·1 answer
  • A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What cha
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!