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diamong [38]
3 years ago
14

Borland, Inc. issues 25-year semi-annual bonds that have a face value of $1,000 and a coupon rate of 7.5%. The current market pr

ice for the bonds is $950.00. If your required rate of return is 8.5%, what is the value of one of these bonds to you
Business
1 answer:
cluponka [151]3 years ago
3 0

Answer: $897.03

Explanation:

You can use Excel to calculate this.

The bond is a semi-annual bond so you need to adjust the variable for this first.

Number of periods = 25 * 2 = 50 semi-annual periods

Coupon = 7.5% * 1,000 * 0.5 semi-annual adjustment = $37.50

Yield = 8.5% / 2 = 4.25%

Value to you = $897.03

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oee [108]

Answer: yes! Aww thanks, you too :))

Explanation: have a great day!!

5 0
3 years ago
Read 2 more answers
December 31 Total assets Total liabilities
Neporo4naja [7]

Answer:

Net Income or Loss : a. 2019 = $53000  ; b. 2020 = $4000 loss ; c. 2021 = $43000

Explanation:

Assets - Liabilities = Capital  (Closing/Opening)

458000 - 317000 = 141000 (2019 Closing Capital)

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

A.  2019 Opening Capital = 100000 (Given)

2019 Closing Capital = A - L = 458000 - 317000 = 141000

2019 Profit = CC - OC - D + AC = 141000 - 100000 + 12000 =  53000

B. 2020 opening capital = 2019 Closing Capital = 141000

2020 closing capital = A - L = 538000 - 367000 = 171000

2020 Profit =  CC - OC + D - AC = 171000 - 141000 - 34000 = 4000 Loss

C. 2021 opening capital = 2020 closing capital = 171000

2021 closing capital = A - L = 668000 - 467000 = 201000

2021 Profit = CC - OC + D - AC = 201000 - 171000 + 25000 - 12000 = 43000

6 0
3 years ago
Assume that the labor market for barbers is competitive and that it is differentiated into two groups:
ehidna [41]

Answer and Explanation:

I will go through each and every option explaining the reasons and what option would be the best:

The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.

The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.

The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.

The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.

Hence the answer is D.

4 0
3 years ago
According to research on marital satisfaction in couples with children, the shape of the marital satisfaction curve across time
Art [367]
Increasing then decreasing.
6 0
3 years ago
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The
Furkat [3]

The calculated profit per unit for base-case, worst-case is, and best-case for the management of Brinkley corporation is:

  • $7
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  • $3 per unit

<h3>The Profit per unit for base-case:</h3>

45 - 1 1- 24 - 3 = $7

<h3>Profit per unit for worst case:</h3>

45 - 12 - 25 - 3 = $3 per unit

<h3>Profit per unit for best case:</h3>

45 - 10 - 20 - 3 = 12$ per unit

b. The mean profit per unit is given as $7.05

c. The reason the simulation approach is preferable is due to the fact that it can help to determine the probability of profit as a particular amount, unlike the what-if scenario analysis.

It can also create different scenarios for possible resources.

d. The probability of the fact that the profit per unit woul  be less than 5 is 9%

Read more on risk analysis here: brainly.com/question/6955504

5 0
2 years ago
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