1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Lisa and mandy have a contract. mandy wants out of the contract; carla sue is willing to take mandyís place, which is satisfacto
worty [1.4K]
<span>This is a novation. In this case, Mandy is being replaced in her obligation with Carla Sue. The obligations that were present in the first contract will now all transfer to Carla Sue. The difference between a novation and an assignment is that all parties have to be aware of the transfer and have agreed to it beforehand.</span>
3 0
3 years ago
Cutting taxes
gladu [14]

Answer:

The answer is D) will raise disposable income and raise spending

Explanation:

When taxes are cut disposable income increases as there is less income used to pay taxes. If there is a higher amount of disposable income available then spending will increase as well as spending appetite.

Cutting taxes is a easy way to stimulate spending in an economy.

The correct answer is therefore D) will raise disposable income and raise spending.

Cutting taxes can also increase aggregate demand which can lead to higher economic growth as well.

8 0
2 years ago
Read 2 more answers
What is the amount of tax paid for the year
slamgirl [31]

Answer:

3428.57142857

Explanation:

4 0
2 years ago
The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000. The minimum acceptable rate of r
Afina-wow [57]

The residual income for the Division A of Magnolia Company for an income from operations of $80,000 will be $32,000.

<h3>What is residual income?</h3>

Residual Income is the total of total income from operations less the minimum acceptable rate of return on the deployed assets for such operations over a financial period.

Using the above information, it can be ascertained that the residual income will be,

\rm Residual\ Income = Income\ from\ Operations - Rate\ of\ Return\ x\ Assets\\\rm Residual\ Income = 80000- (12\%\ x\ 400000)\\\\\rm Residual\ Income = \$32,000

Hence, the residual income will be as computed above.

Learn more about residual income here:

brainly.com/question/27330050

#SPJ1

8 0
2 years ago
Complete the following sentence about margins and alignment with the best choices. Business letters and memos usually have margi
Dovator [93]

Answer:

The answer is 1 to 1 1/4

Explanation:

The side, top and bottom limits are supposed to be 1 to 1 1/4 inches means the general default settings in programs such as Microsoft Word. One-page letters and memos should be vertically centered. Business letter writing margins should be about 1" all around.

4 0
3 years ago
Other questions:
  • Which segmentation method is most closely related to providing value by satisfying customers' needs and wants?
    8·1 answer
  • The major difference between the producer price index and the consumer price index is that the produce price index _____ and the
    8·1 answer
  • Assume that the market is originally in equilibrium. Now suppose that this product gains a sudden popularity among consumers. Ho
    7·1 answer
  • An investment project has an initial cost of $260 and cash flows $75, $105, $100, and $50 for Years 1 to 4, respectively. The co
    12·2 answers
  • Agency conflicts between managers and shareholders An agency relationship can degenerate into an agency conflict when an agent a
    7·1 answer
  • Vega Enterprises has computed the following unit costs for the year just ended: Direct material used $12 Direct labor 18 Variabl
    15·1 answer
  • If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its quick ratio decreases from 0.2 to 0.15
    5·1 answer
  • ________ provide(s) a methodology and tools for dealing with the organization's ongoing need to revise and optimize its numerous
    7·1 answer
  • What will a bank do in order to ensure you are responsible?
    6·1 answer
  • Which statement is not true regarding a critical asset in the enterprise environment
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!