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
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

You might be interested in
Doodle inc., a renowned interior design services company, tries to increase its customer base through web presence. it regularly
aleksley [76]
The answer to this question is that Doodle uses social media as an earned media. An earned media also known as free media which means an online word of mouth. In an Earned media it also shows that a business or product is being talked about in social media either by being viral or through the most number of shares in the internet. In earned media it somehow became a digital marketing because people shares, reviews, and comments about the product or service.
6 0
3 years ago
Susan picked up a package of potato chips and noticed on the front of the package the words, "0 grams of trans fat." She looked
Tcecarenko [31]

Answer:

The correct option here is C) Nutritional labeling and education act.

Explanation:

NLEA or commonly know as nutritional labeling and education act is a new rule passed by the government , which requires the sellers or marketers of a product to show all the information regarding number of grams of fat ( whether trans fat, saturated or saturated fat ) on the packaging of the product.

3 0
2 years ago
Jack and Mary, a married couple, report taxable income of $280,000, which includes $200,000 from Jack's solely owned S corporati
Strike441 [17]

Answer:

$32,140

Explanation:

The QBI  on $280,000(57.3% of Taxable income)                  $160,700

Eligible Deduction of 20% on QBI                                            $32,140

4 0
2 years ago
You are reviewing your client’s Multicurrency company Balance Sheet, and the balance as of the previous fiscal year-end for thei
qaws [65]

Answer:

Foreign exchange loss

Explanation:

A foreign exchange gain/loss is normal for companies that operate in foreign countries. E.g. you prepared your financial statements by converting the foreign currency into your local currency, in this case you converted Canadian dollars to US dollars. But then the exchange rate between the currencies changes. If the value of the Canadian dollar's value increased after conversion, then you gained, and an adjustment must be made to show that gain. But if the Canadian dollar's value decreased after the conversion, then you lost (what happened here) and an adjusting entry must be made to report the loss.

In order to correct his, you must:

Dr Foreign exchange gain/loss 10

    Cr Canadian bank account 10

4 0
3 years ago
Which of the following statements is true?a. The higher the maturity risk premium, the higher the probability that the yield cur
tia_tia [17]

Answer:

b. The most likely explanation for an inverted yield curve is that investors expect inflation to decrease

Explanation:

I have attached an image which plots the behavivour of a yield curve and inflation in a same period. As you can observe, there is an indirect relation between boths curves.

8 0
3 years ago
Other questions:
  • Globalization is the process of the world becoming more connected. Like any process that involves economic choices, it has posit
    12·2 answers
  • Gaston Corporation issued 100000 shares of $ 0.75 par value common stock. Later that​ year, Gaston purchased 18 comma 000 shares
    11·1 answer
  • Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually.
    10·1 answer
  • When a company declares a stock dividend, the declaration will
    10·1 answer
  • An investor has a $5,000 pretax return, The state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investme
    5·1 answer
  • Justin signed a finance agreement for his rent purchase what is the total amount he will pay back under this agreement?
    13·2 answers
  • ​venus diner, a fast food restaurant, has installed two additional billing counters to reduce waiting time for customers. this h
    13·1 answer
  • Need help please <br> Financial statement and ratios quiz
    15·1 answer
  • The owner of a small fleet of taxicabs had his cabs serviced by a national chain of auto service centers. One of his cabs went t
    6·1 answer
  • Question 3 of 10
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!