Answer:
Price of the Bond is $868.82
Explanation:
Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:
Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]
Whereas
C = coupon payment = $110.00 (Par Value x Coupon Rate)
n = number of years = 7
r = market rate, or required yield = 14% = 0.14
P = value at maturity, or par value = $1,000
Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]
Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]
Price of the Bond = $481.0+$387.82
Price of the Bond = $868.82
Possible losses due to negligence resulting in bodily harm or property damage to others are called B.) LIABILITY risks.
Liability is an obligation that you must do or must pay for.
Answer:
The value of price will be exactly what demand is willing to pay, without possibility of change.
Explanation:
We call that a perfectly elastic demand. When we have that kind of price elasticity, any change in price upwards will affect the demand, making it fall to almost zero. On the opposite, if we have a change in price downwards, the demand will not increase. Bread, books, and pencils are good examples of that.
Answer:
$775
Explanation:
In inventory valuation , inventory are valued at the lower of cost to replace an item of inventory and the net realizable value.
The net realizable value is the proceed earned from the disposal of an inventory less the cost related to the disposal.
In the scenario described in the question , The replacement cost for product 66 is $775 while the net realizable value is $800. Therefore , the final inventory valuation will be the lower of $775 and $800 which is $775
