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
DedPeter [7]
3 years ago
8

The market price of an $1,000,000, ten-year, 12% (pays interest semiannually) bond issue sold to yield an effective rate of 10%

is:______
a. $1,124,623.
b. $1,872,360.
c. $1,122,890.
d. $1,133,270.
Business
1 answer:
lisabon 2012 [21]3 years ago
6 0

Answer:

Bond price= 1,124,622

Explanation:

Giving the following information:

Face value= $1,000,000

Number of periods= 10*2= 20

Cupon rate= 0.12/2= 0.06

YTM= 0.1/2= 0.05

<u>To calculate the bond price, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 60,000*{[1 - (1.05^-20)] / 0.05} + [1,000,000 / 1.05^20]

Bond Price​= 747,732.62 + 376,889.48

Bond price= 1,124,622

You might be interested in
Constructive criticism means:
MrRissso [65]
Feedback with the intention to help by listing reasonable arguements
8 0
3 years ago
Read 2 more answers
Describe how a small business might<br> use innovation to create new jobs
bezimeni [28]

Answer:

they work hard and dedication

Explanation:

8 0
3 years ago
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent o
s344n2d4d5 [400]
Find the charge of A AND B to go to C and then you have to scream rlly loud okay! and then you have to jump up and down for 3x • 4x = 9p squared okay
3 0
3 years ago
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation
katrin [286]

Answer:

$40,000

Explanation:

We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.

Calcuation

iability on the transfered real estate        $300,000

less: adjusted basis value                       ($260,000)

Gain recognized                                        $40,000

3 0
3 years ago
Read 2 more answers
Những nhân tố ảnh hưởng đến hành vi mua hàng của người tiêu dùng là gì
sergey [27]

Nhận thức, động cơ, học tập, niềm tin và thái độ là tất cả các yếu tố tâm lý ảnh hưởng đến việc mua hàng của người tiêu dùng. Quá trình mọi người lựa chọn và giải thích thông tin để đưa ra quyết định mua hàng được gọi là nhận thức.

8 0
2 years ago
Other questions:
  • How can you ensure that your telephone calls on the job are productive? Name at least six suggestions.
    9·1 answer
  • Your accountants tell you that it costs $400 to set up an immunization program at a preschool and immunize one child against pol
    13·1 answer
  • Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare
    10·1 answer
  • Which of the following is a way developing nations are trying to raise living standards? A. Return to traditional ways of farmin
    11·2 answers
  • Marginal revenue product is the
    13·2 answers
  • Emmy worked late nights at a convenience store. One night, Emmy discovered that the ""emergency alert"" security system was not
    5·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    8·1 answer
  • determine and describe ten best practices for managers competing in the global environment, challenged with diversity, global ec
    11·1 answer
  • What do u want to be when u grow up
    9·2 answers
  • What are the characteristics of economic globalization​
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!