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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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Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children. His da
san4es73 [151]

Answer:

Fairness of Equal Outcomes: Split his wealth evenly between Terry and Tonya, Leave his money to charity instead.

Fairness of Equal Opportunity: Leave Terry his entire wealth to offset the gap between him and his sister.

Fairness of Process: Tell his kids he will leave the money to whoever does the most to take care of him in his old age.

Fairness of what is deserved or earned: Leave his money to the child whom he thinks deserves the most money.

8 0
2 years ago
Consider the following data for a closed​ economy: Y​ = ​$12 trillion C​ = ​$8 trillion G​ = ​$2 trillion Spublic​ = ​$negative
Rufina [12.5K]

Answer:

B. S and I drop by ​$0.60 trillion.

Explanation:

We know that

Y = C + I + G

$12 trillion = $8 trillion + I + $2 trillion

$12 trillion = $10 trillion + I

So, I = $12 trillion - $10 trillion

       = $2 trillion

As the government purchases increase from $2 trillion to $2.60 trillion

and the rest of the things remain the same.  

So New I = $12 trillion - $8 trillion - $2.60 trillion

               =  $1.4 trillion

So, the difference would be equals to

= $2 trillion - $1.4 trillion

= $0.6 trillion

The $0.6 trillion reflect fall in the investment  

And the saving and the investment are equal to each other

Hence, the B option is the right answer

4 0
3 years ago
Question 2<br> A style of writing in which the main point is stated early in the message.
svetoff [14.1K]

Answer:

this could be a hard lead if this has to do with writing an article of some sort Explanation:

5 0
2 years ago
On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $64,000
Svet_ta [14]

Answer:

Bad debt expense                        6,500 debit

    Allowance for uncollectible account 6,500 credit

Explanation:

"determined that there should be an allowance for uncollectible accounts of $5,150 at December 31, 2022."

We need to recognize as much bad debt as it need to leave the allowance balance on our expected uncollectible account.

balance for allowance before adjsutment:

beginning - write-off = unadjusted allowance

1,250 - 2,600 = -1,350

expected balance - unadjusted balance = adjustment

                5,150      - (-1,350)                     =  6,500

Bad debt expense                        6,500 debit

    Allowance for uncollectible account 6,500 credit

5 0
2 years ago
Which work value is most likely to be important in a person's career choice?
matrenka [14]

Answer:

oD. being skilled at negotiating and bargaining with people

6 0
2 years ago
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