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CaHeK987 [17]
3 years ago
15

Mountain Excursions issues a bond due in 10 years with a stated interest rate of 7% and a face value of $200,000. Interest payme

nts are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond (rounded to nearest whole dollar)
Business
1 answer:
-Dominant- [34]3 years ago
7 0

Answer:

 $186,409.7  

Explanation:

The computation of the issue price of the bond is shown below:

Cash flows               Amount  PVF         Present value

Semi annual Interest   $,7000 13.59033 $95.132.31  

Maturity value     $200,000 0.456387 $91,277.4  

Price of bonds                                   $186,409.7  

The number of years is 20

And, the rate of interest is 4%

And please refer to the present value factor table

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The two key questions the marketer needs to ask are:

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Therefore, the marketer works on those two questions in order to ensure increase in sales and profit if the manufacturer.

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5 0
2 years ago
If someone owes you $100 right now, but they don't pay you for a year, you have lost the opportunity to collect _______________o
denis-greek [22]

Answer:

Interest

Explanation:

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4 0
2 years ago
Which benefit typically costs an employer the most to provide?
never [62]
Idek But you can help me right
8 0
3 years ago
Describe at least two factors you could consider to help decide how much inventory to keep in stock of a particular item at the
Mkey [24]

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gtnhenbr [62]

Answer:

A. True

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Internal rate of return abbreviated as  IRR, is a capital budgeting technique used to evaluate the profitability of a potential project or an investment. In calculating the IRR,  the net present value of the project's cash inflows is set at zero.  Getting the actual value of the IRR is through trial and error, or specially programmed software.

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