__________ is when the company keeps its customer happy enough to keep buying products from the company.

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

Fantom [35]

Answer:

Bond Price = $877.3835955 rounded off to $877.380

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.064 * 1000 = $64

Total periods (n)= 25

r or YTM = 7.5% or 0.075

The formula to calculate the price of the bonds today is attached.

Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075] + 1000 / (1+0.075)^25

Bond Price = $877.3835955 rounded off to $877.380

3 0

3 years ago

Northeast Auto Parts, afamily-owned auto parts store, began January with $10,600 cash. Management forecasts that collections

coldgirl [10]

Answer:

Part 1. $500 required

Part 2. $1,500 required

Explanation:

Part 1.

Northern Auto Parts

Cash Budget

Cash Receipts:

January February

Beginning cash balance 10600 10500

Cash receipts from customers 11300 14700

Cash receipt on note receivable 6500 0

Cash available 28400 25200

Cash payments:

Purchases of inventory 14400 12200

Selling and administrative expenses 3500 3500

Total cash payments 17900 15700

Now

$ $

Cash Receipts: 28400 25200

Cash payments: 17900 15700

Ending cash balance before financing 10500 9500

Less: Ending cash balance Required 10000 10000

Projected cash excess 500 -500

Total effects of financing 0 500

Ending cash balance 10500 10,000

Part 2.

Cash Receipts:

January February

Beginning cash balance 10600 10500

Cash receipts from customers 11300 13700

Cash receipt on note receivable 6500 0

Cash available 28400 24200

Cash payments:

Purchases of inventory 14400 12200

Selling and administrative expenses 3500 3500

Total cash payments 17900 15700

Now

$ $

Cash Receipts: 28400 24200

Cash payments: 17900 15700

Ending cash balance before financing 10500 8500

Less: Ending cash balance Required 10000 10000

Projected cash excess 500 -1500

Total effects of financing 0 1500

Ending cash balance 10500 10,000

The company will have to borrow $1,500 in the month February.

6 0

3 years ago

Bill Mitselfik has purchased a bond that was issued by Acme Chemical. This bond has a face value of $1,000 and pays a dividend o

kramer

Answer:

$1,068.02

Explanation:

For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:

Given that,

Present value = $1,000

Rate of interest = 10% ÷ 2 = 5%

NPER = 3 years × 2 = 6 years

PMT = $1,000 × 8% ÷ 2 = $40

The formula is shown below:

= FV(Rate;NPER;PMT;-PV;type)

The present value comes in negative

So, after applying the above formula, the selling price of the bond is $1,068.02

7 0

3 years ago

Creble Company reported net income for 2016 in the amount of $40,000. The company's financial statements also included the follo

WITCHER [35]

Answer:

$36,000

Explanation:

Net Cash = Net Income for 2016 - Accounts Receivable + Decrease in inventory + Depreciation expense - Gain on sale of equipment

=> Net Cash = $40,000 - $ 4,000 + $2,000 + $3,000 - $5,000

=> Net Cash = $36,000

3 0

3 years ago

Socioeconomic market segmentation is another name for _____ segmentation.

Advocard [28]

I think the correct answer would be demographic segmentation. It is a type of market segmentation where the consumers are classified according to race, religion, family, gender and/or income. It is a way to help an organization target specific consumers.

7 0

3 years ago