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melisa1 [442]
3 years ago
12

An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in

terest is 5%, what is the current market value of the bond
Business
1 answer:
ra1l [238]3 years ago
6 0

Answer:

Bond Price​= $846.3

Explanation:

Giving the following information:

YTM= 0.05

Maturity= 15*2= 30 semesters

Par value= $1,000

Coupon= $40

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 40*{[1 - (1.05^-30)] / 0.05} + [1,000 / (1.05^30)]

Bond Price​= 614.90 + 231.38

Bond Price​= $846.3

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The goal of any credit card holder should be to A. run up as much debt as possible. B. use the bankruptcy filing as a way to red
DedPeter [7]
The goal of any credit card holder should be to C.) AVOID EXCESSIVE CREDIT CARD DEBT.

Credit cards are used for the purpose of convenience. Instead of bringing cash to pay for purchases, credit cards are swiped as payment for said purchases. These cards are short-term loans. Its balance should be paid before due date to avoid paying for interest. Its use should not be abused.
4 0
3 years ago
Magnet Dot, a printer manufacturing company, set up a website to enable its customers to place orders online. It also set up an
sineoko [7]

Answer:

communication costs

Explanation:

Communication is critical for the success of a business. If the communication cost is high, then communication can become a hindrance to the success of business success. The costs associated with communication include fixed telephone, mobile phones cost, and internet access. Travel and venue cost that facilitates face-face meeting also adds to communication costs.

Businesses are embracing modern technology to cut down on their communication cost. Technology has increased the flow of internal and external communication. Magnet Dot is likely to grow as a business as customers can order for products over the internet.

3 0
3 years ago
Which of the following would most likely shift a production possibilities curve to the right?
MAXImum [283]

Answer:

 an improvement in the education level of the work force of a nation

Explanation:

The production possibility curve is a curve that shows the various quantities of two goods an economy can produce at a given level of technology and amount of labour force.

Factors that leads to an outward shift of the production possibility curve;

1. Increase in labour force

2. Increase in education level of the Labour force

3. Technological advancement

Shifting resources from the production of one good to the production of another leads to a movement along the production possibility curve.

I hope my answer helps you

5 0
3 years ago
The manager of manufacturing consults with a customer service representative to determine the status of a shipment to a customer
DiKsa [7]

Option C

This is an example of​ diagonal communication.

<u>Explanation:</u>

Diagonal communication is the distribution of information between various structural levels inside a business. Diagonal communication is advantageous as it is active, practical and valuable. It can also develop greater coordination between staff members. It can assist in solving problems precisely as various approaches are taken concurrently.

It lessens the uncertainties of falsification or distortion by promoting communication among the appropriate parties. It also diminishes a manager's communication workload because he doesn't ought to work as an emissary among his direct statements and other administrators.

8 0
3 years ago
The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8 and the beta of B is 1.5.
Zigmanuir [339]

Answer:

Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

Explanation:

Expected return= free return + Beta (Expected rate of return – risk free rate)

Portfolio A

6%+ +.8*6%

= 6%+4.8%= 10.8%

Portfolio B

6%+1.5(6%)

6%+9%= 15%

It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

4 0
4 years ago
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