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german
3 years ago
8

How much does the $1,000 to be received upon a bond's maturity in 4 years add to the bond's price if the appropriate discount ra

te is 6%
Business
1 answer:
Soloha48 [4]3 years ago
8 0

Answer:

$792.09

Explanation:

Calculation for how much that was received upon a bond's maturity

Using this formula

Amount received=Amount received to be received upon a bond's maturity /(1+Discount rate)^Bond's maturity years

Let plug in the formula

Amount received=$1,000/(1+0.06)^4

Amount received=$1,000/(1.06)^4

Amount received= $792.09

Therefore how much that was received upon a bond's maturity will be $792.09

You might be interested in
Which of these is NOT an example of price discrimination? retirees getting a discount at a local movie theater soup companies se
Gre4nikov [31]

Answer:

A novel printed in paperback that sells for more than the same book in an electronic format

The example contains two different products, one is novel in paper form, and other in electronic form of the novel. Price discrimination occurs when we charge different prices for the same product from different customers. They are completely two different forms of the product which means the product is not identical in term of its form.  

Explanation:

Above mentioned example is definitely does not fall under price discrimination.

<em>Price Discrimination</em>: is offering different prices to different customers for the same good. All of the other examples may falls under price discrimination because they contain same product but for different customers namely, discount at movie theater, soup companies sending coupons, and for the same drug they are charging different prices accordingly.

 

5 0
4 years ago
On July 1, 2016, Sheffield Corp. issued 9% bonds in the face amount of $11100000, which mature on July 1, 2022, The bonds were i
lidiya [134]

Answer:

Explanation:

Discount bonds are issued on discounted price of their face value

Here discount = 11100000-9720000

= 1380000

on 1/07/2016

cash outflow or book value of bond

= 9720000

on 30/06/2017

interest paid = 999000

yield expected = 972000 ( 10% of issue price )

interest amortized

= 999000-972000 = 27000

book value = 9720000 + 27000

= 9747000

on 30/06/2018

interest paid = 999000

yield expected = 974700 ( 10% of book value )

interest amortized

= 999000-974700 = 24300

value amortized = 24300 + 27000 = 51300

book value = 9747000 + 24300

= 9771300

Amount unamortized

1380000 - ( 51300 )

= 1328700

3 0
4 years ago
The human resource department at Paula's Powerwheels is implementing a number of functional level strategies. These strategies i
katen-ka-za [31]

Answer:

The correct answer is Cost leadership.

Explanation:

Cost leadership are those strategies with which products similar to those of other companies are offered at a lower cost, that is, a certain company is considered to be the lowest cost producer in its industrial sector in order to achieve a differentiation.

At lower prices than its rivals, the leader's position translates into higher returns, however, standard products should not be sold ignoring the basis of product differentiation itself, since, if the customer does not perceive the product as comparable, The company must set very low prices in relation to the competition to achieve sales.

The sources to obtain this type of advantages are varied and depend on the structure of the industrial sector itself, including economies of scale, the use of proprietary technology, preferential access to the raw material, among others.

The cost leadership strategy aims to make a company the leader, rather than several companies struggling to reach that position, as this implies tough rivalry and competition that can have unfavorable consequences for all.

8 0
4 years ago
A plastic manufacturing company has made a strategic decision to purchase a fleet of 3- D printers and use these printers to pro
Tresset [83]

Answer:

$51,696.44

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0  = $-92,700

Cash flow each year from year 1 to 4 = $36,000

Cash flow in year 5 = r $17,500 + $36,000 = $53,500

I = 10.75%

NPV = $51,696.44

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

3 0
4 years ago
5. Many tax professionals and advisors recommend adjusting your W-4 allowances so that...
kirill115 [55]
Many tax professionals and advisors recommend adjusting your W4 allowance so that THE TAX PAYMENT WILL EXACTLY MATCH ONE'S TAX LIABILITY.
Over payment and under payment of tax liability usually occur to people as a result of the number of withholding which they claim. Experts suggest adjusting the number of  one' s withholding in order t avoid over or underpayment of tax.
3 0
4 years ago
Read 2 more answers
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