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NemiM [27]
3 years ago
5

A 3-year bond with 10% coupon rate and $1,000 face value yields 8% yield to maturity. Assuming annual coupon payment, calculate

the price of the bond.
Business
1 answer:
NNADVOKAT [17]3 years ago
6 0

Answer: $1051.51

Explanation:

Coupon rate = 10%

Face value = $1,000

Yield to maturity = 8%

Annual coupon will be:

= Face value × Coupon rate

= 1000 × 10%

= 100

Therefore, the price of bond will be:

= Annual coupon × Present value of annuity factor + $1000 × Present value of the discounting factor

= (100 × 2.5771) + (1000*0.7938)

= 257.71 + 793.8

= $1051.51

The price of the bond is $1051.51

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Suppose the common stock of United Industries has a beta of 1.28 and an expected return of 15.47 percent. The risk-free rate of
Dima020 [189]

Answer:

The expected market risk premium is 9.20%

Explanation:

In order to calculate the expected market risk premium we would have to calculate the following formula:

expected market risk premium=(Rs-Rf)/β

Rf=3.7%

β=1.28

Rs=15.47%

expected market risk premium=(15.47%-3.7%)/1.28

expected market risk premium=9.20%

The expected market risk premium is 9.20%

3 0
4 years ago
To finance some manufacturing tools it needs for the next 3 years, waldrop corporation is considering a leasing arrangement. the
KATRIN_1 [288]
"The answer is $106".

After tax cost of debt               6%
Dep per year                          1600
Tax sav from dep                   640
cost of owning       0               1
interest                                  -480
tax saving                               192
maintence                                 -240
maintenece saving                     96
Depn tax saving                          640
loan repay
net cash cost                              208
PV cost of owning (6%)             -3474
cost of leasing
lease payment                           -2100
Tax savings from lease                840
net cash cost                           -1260
PV cost lease 6%                     -3368
PV cost own - Pv cost lease       106
3 0
3 years ago
What were the main reasons grange decided to leave school in order to start his own team?
aleksandr82 [10.1K]
One of the main reason is He <span>Knocked out in one of the games during high school. Grange remained unconscious for two days after the blow and started to experience difficulity in speaking. This make his career became really blurry and none of the team want to sign him. In the end, he had to make his own team.</span>
3 0
4 years ago
Cannibalization occurs when a producer offers a new product that takes sales away from its existing products
MariettaO [177]

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products: TRUE

<h3>What is cannibalization?</h3>
  • Cannibalization in marketing strategy refers to a decrease in sales volume, sales revenue, or market share of one product when the same company releases a new one.
  • Cannibalization occurs when a manufacturer introduces a new product that competes with its existing items.
  • Market cannibalization occurs when a corporation introduces a new product that replaces one of its existing ones.
  • When a new product is identical to an old one and both share the same client base, market cannibalization occurs.

Therefore, the statement "cannibalization occurs when a producer offers a new product that takes sales away from its existing products" is TRUE.

Know more about cannibalization here:

brainly.com/question/5421107

#SPJ4

The correct question is given below:

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products. TRUE or FALSE

5 0
2 years ago
When Sewsavor developed a food delivery application, a majority of people started using and recommending the application. Howeve
viktelen [127]

Answer: D) Technological lockout.

Explanation: Technological lockout occurs when a new dominant design prevents a company from competitively selling its products.

In this scenario, people switched to the other food delivery applications. Hence, preventing Sewsavor from competitively selling its products as it used to.

4 0
3 years ago
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