Suppose that the price of a pound of bananas is

Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8%. Now, with 7 years

maxonik [38]

Answer:

$814.10

Explanation:

Calculation to determine what the price of the bond now

Using this formula

Bond price = PV of coupon payments + PV of face value

Bond price= C×((1 / r) – {1 / [r(1 + r)t]}) + FV / (1 + r)t

Let plug in the formula

Bond price= [(.080 ×$1,000) / 2] ×[[1 / (.12 / 2)] – (1 / {(.12 / 2)[1 + (.12 / 2)](7 ×2)})] + $1,000 / [1 + (.12 / 2)](7 ×2)

Bond price= $814.10

Therefore the price of the bond now is $814.10

3 0

3 years ago

You want to buy a car, and a bank will lend you $15000. The loan will be fully amortized over 5 years(60 months), and the nomina

inysia [295]

Answer:

a) $ 333.67

b) 12.6825

Explanation:

a) The 333.67 amount is the payment per month without interest and of course interest will differ from month to month as the loan is amortized monthly. to get the payment using financial calculator its N= 60, I/YR = 12%/12=0.01, 15000=PV, FV=O THEN COMPUTE PMT

OR use the formula pmt= PV/1-1/(1+rate)^time/rate

b) To get EAR = (1+ rate/ compounding)^compounding-1

(1+0.12/12)^12-1

6 0

3 years ago

After nearly 20 years with his company, Mike's job was outsourced. He wants his new job to offer not only a good wage but also j

olga55 [171]

Answer:

intrinsic rewards

Explanation:

In this scenario, it seems that Mike is focused on the intrinsic rewards of his job. These are rewards that come from within the employee themselves. For example, an employee who is motivated is working for his/her own satisfaction and finds meaning in their challenging work, which in term is the intrinsic reward. In this case, the job satisfaction and sense of accomplishment are the intrinsic rewards that Mike wants from his job.

8 0

3 years ago

An ordinary annuity selling at $10,538.38 today promises to make equal payments at the end of each year for the next twelve year

klio [65]

Answer:

The annual annuity payment during this time at the rate of 6.50 % is $1291.67

Explanation:

Compute the annual annuity payments (PMT)

Present Value of annuity (PV) = $10538.38

Number of years (n) = 12

Rate (i) = 6.50%

$Present Value (PV) = PMT [1- (1+r)^{n} ]/r]$

$10538.38 = PMT [1- (1+0.0650)^{-12} ]/0.0650$

$Annual Annuity Payments = 0.0650*10538.38/[1- (1+0.0650)^{-12} ]$

Annual Annuity Payments = $1291.67

6 0

3 years ago

Hansel just bought 100 N95 masks to sell during the pandemic. Hansel realizes he doesn’t have enough and calls Gretel on the pho

MakcuM [25]

Answer:

There is no specific type of contract to define this agreement, as it was a verbal acceptance. And yes, there is a difference in the use of cellphone and voicemail as there would be a time difference. Please give brainliest.

7 0

2 years ago