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
ryzh [129]
3 years ago
15

A five-year bond has a par value of 1000, a coupon of 3%, and a required yield of 5%. What should be the market price of this bo

nd?
Business
1 answer:
Dmitrij [34]3 years ago
4 0

Answer:

The market price of the bond is $913.41

Explanation:

The coupon payment is annual, meaning it is being paid once a year.

N(Number of years/Number of periods) = 5

I/Y(Yield-To-Maturity) = 5 percent

PMT(coupon payment) = $30 [(3/100) x $1,000]

FV(Future value/Par value) =$1,000

PV(present value or market value) = ?

Now to solve this, lets use a financial calculator (e.g Texas BA II plus)

N= 5; I/Y = 5%; PMT = $30; FV = $1,000; CPT PV = -$913.41

Therefore, the market price of the bond is $913.41

You might be interested in
Goods X and Y are perfect substitutes. When the market price of good X is​ $5/unit, firm F produces 500 units of X. When the pri
goldenfox [79]

Answer:

According to this situation, we assume that firm F is the only producer of product X.

Explanation:

A perfect replacement is a condition in which two items are considered equal. Great replacements are goods and you can't build a brand whereby consumers like the commodity.

Except for a market price, optimal substitution suppliers must have no impact on the quality.

  • Therefore, in this situation product Y's price rises, so people shift for product X.
  • In results, firm F had to increase his supply which shows that firm F is the only producer of product X in the industry.

3 0
3 years ago
Drum buffers are:
maks197457 [2]

Answer: Extra safety that is applied to a project immediately before the use of the constrained resource.(D)

Explanation:

Drum buffer can be explained as period of time that is used to safeguard the drum resource from the problems that occur from the drum operation.

The aim of the drum buffer effect is to provide a recheck of the work in order not to deviate from the real aim of the project. The buffer makes up for the process variation, and makes the project stable as it gives extra safety which is applied mmediately before using constrained resource.

6 0
3 years ago
Kristen Lu purchased a used automobile for 8,000 at the beginning of last year and incurred the following operating costs:
love history [14]

Fixed cost per mile 0.32 =(1600+1200+360+40)/10000.

Kristen Lu purchased a second user automobile for 8,000 at the start of last year and incurred the subsequent operatingcosts:8,000atthebeginningoflastyearandincurredthefollowingoperatingcosts ($8,000 ÷5 years) Insurance Garage rent Automobile tax and license Variable operating cost​$ 1.600 $ 1.200 $ 360 $ 40 $ 0.14 per mile​$The variable expense consists of gasoline, oil, tires, maintenance, and repairs. therefore the annual straight-line depreciation is$1,600.

The car is kept in a very garage for a monthly fee. Kristen drove the car 10,000 miles last year. Compute the typical cost per mile of Owning and operating cost of the the car.  What costs above are relevant during this decision? Kristen is considering buying an upscale sports car to interchange the car she bought last year.

She would drive the identical number of miles irrespective of which car she owns and would rent the identical parking zone. The sports car's variable operating costs would be roughly identical because of the variable operating costs of her old car.

learn more about operating cost: brainly.com/question/2115053

#SPJ4

3 0
1 year ago
Myriad Solutions, Inc. issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021, for $375,505,45
faust18 [17]

Calculation

Period   Cash Interest   Bond Interest    Discount     Carrying  

 End          paid            Expense         Amortization     Value

 01-Jan-21                                                            $375,505,452            

30-Jun-21 $25,200,000 $26,285,38 $1,085,382 $376,590,834

1-Dec-21 $25,200,000   $26,361,358  $1,161,358  $377,752,192

Total    $50,400,000     $52,646,740

3 0
3 years ago
Read 2 more answers
In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the
julia-pushkina [17]

Answer:

The correct answer is option (C).

Explanation:

According to the scenario, the given data are as follows:

Base year basket price = $5,000 billion

Year 2 basket price = $5,500 billion

So, we can calculate the consumer price index by using following formula:

Consumer price index = (Year 2 basket price ÷ Base year basket price ) × 100

By putting the value, we get

Consumer price index = ( $5,500 ÷ $5,000 ) × 100

= 1.1 × 100

= $110 billion

5 0
4 years ago
Other questions:
  • More important than being catchy or well written, a mission statement should be
    6·2 answers
  • Larry Simmons has​ split-limit 150​/225​/110 automobile liability insurance. Several months ago Larry was in an accident in whic
    14·1 answer
  • Which option best describes the main behavior that economics studies?
    9·1 answer
  • Where's the leak ma'am?
    7·2 answers
  • On January 1, year 1, a company grants 5,000 nonqualified stock options to an employee with a strike price of $3 per option and
    7·1 answer
  • (14 points) A financial analyst determines that Cyclone Company has $54 million of interest bearing debt outstanding and 3,800,0
    10·1 answer
  • Electronic Wonders reports net income of $96,500. The accounting records reveal Depreciation Expense of $50,200 as well as incre
    8·1 answer
  • Write a sentence with a word Gross Domestic Product:​
    11·2 answers
  • Many customers value fast, fresh, flavorful food that is free of preservatives, chemicals, and antibiotics. The marketing mix fa
    12·1 answer
  • Hair Stylist Woes. Maryann went to see her hair stylist, Candy. Maryann, who had black, curly hair, requested straight, blond ha
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!