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Fofino [41]
3 years ago
6

Gugenheim, Inc., has a bond outstanding with a coupon rate of 7.7 percent and annual payments. The yield to maturity is 8.9 perc

ent and the bond matures in 17 years. What is the market price if the bond has a par value of $2,000?
Business
1 answer:
Anna [14]3 years ago
3 0

Answer:

Bond price= $1,793.62

Explanation:

Giving the following information:

Face value= $2,000

Number of periods= 17

Cupon rate= 0.077

YTM= 0.089

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

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

Bond Price​= 154*{[1 - (1.089^-17)] / 0.089} + [2,000/1.089^17)

Bond Price​= 1,324.21 + 469.41

Bond price= $1,793.62

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Answer:

2. A given bond is subordinated to other classes of debt.

Explanation:A bond Indenture is a legally approved contract between a bond holder(the buyer of the bond) and a bond issuer(the original owner of the bond,who sold it to the bond holder).

Subordinated bond is also known as junior Securities or subordinated debt are bonds that are lower in rank compared to other bonds,a subordinated bond holder is only paid when other senior bond have been completely paid out.

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How much are these nails<br> have an estimate?
patriot [66]
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Caleb is very good at watching other people and interpreting how they will react, and is successful when negotiating with others
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8 0
3 years ago
In the current year, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of
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Answer:

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The three tiers of possible deductions are:

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Since Crimson owned 15% of the second company, then it can deduct 70% of the dividends it received, which equals $21,000 ($30,000 x 70%).

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Brand equity is determined by four aspects of a brand which include ________
siniylev [52]

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