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aev [14]
2 years ago
9

Bond X is noncallable and has 20 years to maturity, a 11% annual coupon, and a $1,000 par value. Your required return on Bond X

is 12%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 7%. How much should you be willing to pay for Bond X today
Business
1 answer:
Virty [35]2 years ago
8 0

Answer:

Present value = $1,170.68

Explanation:

The value of the bond in 5 years will be:

PV of face value = $1,000 / (1 + 7%)¹⁵ = $362.45

PV of coupon payments = $110 x 9.1079 (PVIFA, 15 periods, 7%) = $1,001.87

Total value = $1,364.32

The current value of the bond is:

PV of face value = $1,364.32 / (1 + 12%)⁵ = $774.15

PV of coupon payments = $110 x 3.6048 (PVIFA, 5 periods, 12%) = $396.53

Present value = $1,170.68

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_____ advertising is done by local merchants to encourage consumers to shop at a specific store, use a local service, or patroni
ololo11 [35]

Answer:

The correct answer is letter "D": Retail.

Explanation:

Retail advertising is developed by retailers to attract consumers to their local stores. This type of marketing may not be necessarily focused on the product features but how they are sold, meaning in bundles or at discount. It is the final merchandising made to products before they reach end-consumers.

8 0
3 years ago
Dyson cordless vacuum cleaners offer heavy-duty performance for cleaning all floor types. The Dyson is also very lightweight and
pav-90 [236]

Because the Dyson provides the user with really clean floors and carpets, the Dyson is an example of utilitarian value

<h3>What is a Utilitarian Value?</h3>

This refers to the value that is received by a customer based on task-related behavior where there is a functional product aspect.

Hence, we can see that based on the fact that Dyson cordless vacuum cleaners offer a service for a price of $599 and gives really clean floors, they are an example of utilitarian value.

Read more about utilitarian value here:

brainly.com/question/14570851

#SPJ1

3 0
2 years ago
Abercombie Inc. will invest in a project. The project will give the company $10,000 on January 1, 2014, $23,000 on May 8, 2014,
Gala2k [10]

Answer:

$136,539.57

Explanation:

The present value of the project can be determined by using the cfj function of a Financial calculator as follows :

$0 CF0

$10,000 CF 1

$23,000 CF2

$33,000 CF3

$42,000 CF4

$55,000 CF5

I/YR = 5 %

Then SHIFT NPV gives $136,539.57

therefore,

the present value of the project is $136,539.57

5 0
2 years ago
Why do you think different college majors pay for themselves at different rates?
Brums [2.3K]
In my opinion, i think this happens because different majors can you get different jobs, where people are making different amounts of money! so if you had a education degree, it would take longer to pay it “off” verses say a law degree! hope that kinda helped :)
3 0
2 years ago
Gannon Company acquired 10,000 shares of its own common stock at $20 per share on February 5, 2014, and sold 5,000 of these shar
DiKsa [7]

Answer:

The credit entry for the issue of 5000 shares is:

Cr Treasury stock                                       $100,000

Cr Paid-in capital from treasury stock          $35,000

Explanation:

The par value of the common stock issue($20 per share) is credited to treasury stock account, while the excess of issue price of $27 over the par value of $20, $7 per share is credited to paid-in capital from treasury stock

The full double entries for the issue of 5000 shares is as follows:

Dr Cash ($27*5000)                                                 $135,000.00  

Cr Treasury stock($20*5000)                                                          $100,000

Cr Paid-in capital from treasury stock($7*5000)                                $35,000

Under International Financial Reporting Standards, the credit entries would be that par value is credited to equity share capital and the excess credited to share premium account.

                                 

3 0
3 years ago
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