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Evgen [1.6K]
2 years ago
5

Now, consider the situation in which Noah wants to earn a return of 7%, but the bond being considered for purchase offers a coup

on rate of 9%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bond's intrinsic value to the nearest whole dollar, then its intrinsic value of
Business
1 answer:
Oxana [17]2 years ago
4 0

Answer:

$1,053.29  

Explanation:

The intrinsic value of the bond is the present value of the bond's future  cash flows, semiannual coupons for 3 years as well as the face value at the bond's maturity payable to bondholders.

The bond price can be determined using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:

N=6(there are 6 semiannual coupons in 3 years)

PMT=45(semiannual coupon=1000*9%*6/12=45)

I/Y=3.5(semiannual yield=7%*6/12=3.5%

FV=1000*(the face value of the bond is $1000)

CPT

PV=$1,053.29  

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A hospital revenue bond issue is being underwritten on a negotiated basis. The offering consists of $20,000,000 par value of ter
ddd [48]

Answer:

The selling group member earns $12 on that sale

Explanation:

When selling a bond directly to the public, a group member earns a total takedown which is the total of the additional takedown plus the selling concession.

$12 + $15

= $27

Now if a selling group member finds a customer, then $15 which is the selling concession is given up leaving the member to earn $12 (the additional takedown) on that sale.

6 0
3 years ago
Molave Furniture Company plans to launch a new website. Lila, the company's CIO, thinks that the company can better reach its cu
Kisachek [45]

Answer:

<u>e-commerce</u>.

Explanation:

When Molave ​​Furniture Company wants to launch a new website to customize the ability for customers to shop online and thereby increase sales, it is an e-commerce promotion strategy.

In order for Lila to be able to effectively promote e-commerce, it is essential that the focus is on optimizing the customer experience, the site must be easily accessible, as well as a logistics service that ensures agility in receiving goods, as well as a efficient after sales service to answer questions and resolve purchase related issues.

4 0
3 years ago
A process currently services an average of 43 customers per day. Observations in recent weeks show that its utilization is about
love history [14]

Answer:

The correct answer is 31 customers per day.

Explanation:

Consider the current capacity requirement as = x

Management wants to have a capacity cushion = 8%.

So the utilization is required = 100% - 8% = 92%

A process of currently services an average of 43 customers per day and utilization is 90%.

Expected Demand=70%= 70 ÷ 100 = 0.70

Current utilization = 90% = 0.90

Let Capacity requirement = X

Capacity requirement ÷ required utilization  = Expected Demand rate × current service rate ÷ current utilization rate

X ÷ 0.92  = 0.70 × 43 ÷ 0.90

X = 0.70 × 43 ÷ 0.90 × 0.92

= 30.76  or 31

Needed capacity requirement is 31 customer per day.

6 0
3 years ago
What is the price paid for the use of borrowed money referred to as?
marshall27 [118]
Interest
Interest is the monetary charge for borrowing money—generally expressed as a percentage, such as an annual percentage rate (APR). Key factors affecting interest rates include inflation rate, length of time the money is borrowed, liquidity, and risk of default. Interest can also express ownership in a company.
3 0
2 years ago
You want employees to know that they can talk to retirement planning specialists. Which of the following statements is most like
eimsori [14]
It would have to be B
7 0
3 years ago
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