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kherson [118]
3 years ago
5

Consider a bond with a coupon of 5.2 percent, eight years to maturity, and a current price of $1,053.10. Suppose the yield on th

e bond suddenly increases by 2 percent. a. Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Sindrei [870]3 years ago
7 0

$936.41 is the new price of the bond.

<u>Explanation:</u>

<u>New price of the bond after using the duration is calculated as follows:</u>

Purchase date = 01 june 2016, Maturity date = 01 june 2024, frequency = 1

Face value = $10000, Annual coupon rate = 5.20 percent, Yield to maturity = 6.40 percent,

NPER = 6.688257877

PMT = $52.00

New price of the bond = $936.41 ( rounded to two decimal places)

Note: I have used an excel formula so as to calculate the new price of the bond.

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The following are data concerning cash received or paid from various transactions for Orange Peels Corporation: Sale of land $10
vichka [17]

Answer:

A. $190,000

Explanation:

The breakdown analysis of Balance Sheet and Income Statement in terms of Cash in the form of Operating, Investing and Financing activities is known as Cash Flow Statement or the Statement of Cash Flows.

In Investing Activities Cash Flow we simply add Cash Proceeds from the sale of assets and subtract any proceeds from the purchases. The difference between the two is called Cash Flow from investing activities and it how much cash surplus or deficit we have from Investing Activities of Cash.

In the Statement of Cash Flows calculating Net Cash provided by investing activities is simple. Simply add Sale of Land, Sale of Equipment and Issuance of Common Stock. Subtract Purchase of Equipment from it and you will get the Net Cash Flow from Investing Activities.

Payment of Cash Dividend is the Financing Activities item so will not be taken into consideration in Investing Activities Cash flow as follows:

(+) Sale of Land $100,000

(+) Sale of Equipment $50,000

(+) Issuance of Common Stock 70,000

(-) Purchase of Equipment $30,000

NET CASH FLOW from INVESTING ACTIVITIES $190,000

4 0
3 years ago
If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be
masya89 [10]

If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be B to A.

<h3>What happens when prices rise?</h3><h3 />

For Normal goods, a rise in prices would mean a fall in the quantity demanded. This is shown by the demand curve which shows the relationship between the quantity demanded and price.

When there is a price change, the movement will be along the demand curve which means that the demand curve would see a movement from Point B to Point A for coconuts.

Find out more on price changes and the demand curve at brainly.com/question/1139186

#SPJ1

8 0
1 year ago
Fresher Foods, Inc., orally agreed to purchase one thousand bushels of corn for $1.25 per bushel from Dale Vernon, a farmer. Fre
Yuri [45]

Answer:

In the case of Fresher Goods, Inc.v. Vernon, the trial court will possibly conclude that Vernon must complete the portion of the payment which has already been compensated for as a result of partial results.

Explanation:

Vernon accepted partial payment for the sold goods. While the Law of Frauds demanded that any contract for the selling of goods at a price of $500 or more be enforceable in writing, the oral arrangement was partially compensated and agreed by all parties. That part of the deal was binding, so Vernon would supply 100 corn bushels to Fresher for $1.25 per bushel.

3 0
3 years ago
Keira is in the market for a type of goods with unique characteristics that appeals to a limited number of consumers and require
Savatey [412]

The correct answer would be option B, Specialty Goods.

Keira is in the market for a type of goods with unique characteristics that appeals to a limited number of consumers and requires significant effort and money to purchase. Keira is most likely in the market for Specialty Goods.

Explanation:

There are products in the market that have certain characteristics that are appealing to a limited number of people. Such products require not only effort to purchase, but also a significant amount of money is needed.

Specialty products are usually high in price because of their unique characteristics, and that is why they are not easily available in the market as they are needed by a limited number of people.

Specialty products may include the following:

  • Luxury Cars
  • Luxury Clothing
  • High Fashion Clothing
  • Exotic Perfumes
  • Professional Photographic Equipment, etc.

Learn more about Specialty Products at:

brainly.com/question/14227087

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3 0
3 years ago
Sheridan Company sells merchandise on account for $5800 to Pharoah Company with credit terms of 1/10, n/30. Pharoah Company retu
wariber [46]

Answer:

check amount is $4,554

Explanation:

given data

sells  account = $5800

credit terms = 1/10, n/30

Company returns  = $1200

to find out

amount of the check

solution

we know here Net Sales  that is

Net Sales = sells  account - Company returns    ................1

put here value

Net Sales= $5,800 - $1200

Net Sales = $4,600

and

Discount will be here

Discount  = 1% of Net Sales

Discount  = $4,600 × 1%

Discount  = 46

so check amount  will be here

check amount = Net Sale - Discount

check amount = 4600 - 46

so that check amount is $4,554

3 0
3 years ago
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