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Effectus [21]
3 years ago
10

Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8%. Now, with 7 years

left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 12%. What is the price of the bond now
Business
1 answer:
maxonik [38]3 years ago
3 0

Answer:

$814.10

Explanation:

Calculation to determine what the price of the bond now

Using this formula

Bond price = PV of coupon payments + PV of face value

Bond price= C×((1 / r) – {1 / [r(1 + r)t]}) + FV / (1 + r)t

Let plug in the formula

Bond price= [(.080 ×$1,000) / 2] ×[[1 / (.12 / 2)] – (1 / {(.12 / 2)[1 + (.12 / 2)](7 ×2)})] + $1,000 / [1 + (.12 / 2)](7 ×2)

Bond price= $814.10

Therefore the price of the bond now is $814.10

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The type of data that has already been gathered by another source is called
In-s [12.5K]
Researchers in the health and social sciences can obtain their data by getting it directly from the subjects they’re interested in. This data they collect is called primary data. Another type of data that may help researchers is the data that has already been gathered by someone else. This is called secondary data. Hope this helped!
5 0
2 years ago
If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be
Arlecino [84]

Answer:

Less than average total Cost

Explanation:

Average total cost can be estimated as

(total fixed cost as well as variable costs )/ ( total units produced). It has a great impact on how a business is going to set up the price of their products. Marginal cost is can be regarded as alteration in total cost as a result of increase in unit of quantity produced. It should be noted that If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be Less than the average total cost

8 0
3 years ago
Based on employment statistics for 2010, which ranks the number of jobs in these careers from least to greatest? Crop Production
NemiM [27]

Answer:

Elementary Education → Accounting → Pharmacy → Crop Production

Explanation:

According to the employment statistics, Elementary education employs the least, and Crop production employs the largest number.

3 0
3 years ago
The follow passage describes how a catalytic converter in a car works. The catalytic converter mostly likely was developed in re
Mashcka [7]

Answer:

Its A

Explanation:

Its A

5 0
3 years ago
What was the major financial change between post ww2 borrowers and borrowers after 1970.
Mama L [17]

The major financial change between post ww2 borrowers and borrowers after 1970 was that there were plenty of jobs after World War 2 and the economy was growing at a large extent.

Most of the people believed that their income would not change even though there were plenty of jobs in the economy.

However they all have a constant income from the year 1945 to 1970.

So all the people continued  to borrow more and more money by not attending or joining any post war job in the economy.

Banks were also willing to lend more and more money as they were on the way of high earning through more lending but they get closed.

So after the war people continued to increase their loans and debt ratio in the economy of lending due to which it became the period of great depression.

To know more about post war borrowing here:

brainly.com/question/2675965

#SPJ4

4 0
1 year ago
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