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qwelly [4]
3 years ago
5

Madsen Motors's bonds have 21 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon i

nterest rate is 12%, and the yield to maturity is 15%. What is the bond's current market price

Business
1 answer:
GarryVolchara [31]3 years ago
4 0

Answer:

$810.63

Explanation:

For computing the current market price we need to use the present value formula i.e to be shown in the attachment below

Provided that,  

Future value = $1,000

Rate of interest = 15%

NPER =  21 years

PMT = $1,000 × 12% = $120

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the bond current market price is $810.63

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During which phase of dmaic (define, measure, analyze, improve, control) is the sole purpose to demonstrate, with fact and data,
lawyer [7]
DMAIC is an acronym for Define, Measure, Analyze, Improve and Control. It is a procedure intended to enhance and keep up business forms. The period of which the sole intention is to show with actuality and information that your answers take care of your concern is "move forward." 
It alludes to an information driven change cycle utilized for enhancing, streamlining and settling business procedures and outlines. The DMAIC change cycle is the center device used to drive Six Sigma ventures.
7 0
3 years ago
Assuming an acid-test ratio of 1.0, how will the purchase of inventory with cash affect the ratio?
docker41 [41]

Answer:

C) Decrease the acid-test ratio

Explanation:

The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.

That is the amount of cash or near cash assets it has to settle it's current debt.

Mathematically

Quick ratio = (Current assets - Inventory) ÷ Current liabilities

If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.

The value of (Current asset - Inventory) reduces.

As the numerator in the ratio reduces, the quick ratio also reduces.

6 0
3 years ago
So you can retire early, you have decided to start saving $500 a month starting one month from now. You plan to retire as soon a
Mashcka [7]

Answer:

It will take him 45 years

Explanation:

In this question, we are asked to calculate the number of years it would take to accumulate $1,000,000 if there is a plan to save $500 per month at an interest rate of 5%.

To solve this, we use the following mathematical formula:

Future value of annuity = Annuity payment * {(1+r)^n - 1}/r

Where r is the monthly interest rate and n is the number of months it will take.

From the question, we can identify the following;

Since he earns 5% interest on savings, the actual monthly interest rate will be 5%/12 = 0.4167% = 0.004167

Annuity payment = monthly payment = $500

Future value of annuity = $1,000,000

We substitute these values into the equation:

1,000,000 = 500 * [(1+0.004167)^n - 1]/0.004167

8.334 = (1.004167)^n - 1

1+8.334 = (1.004167)^n

9.334 = (1.004167)^n

To get n, we simply take the log on both sides of the equation

Log 9.334= nLog 1.004167

n = Log9.334/Log1.004167

n = 537 months

Question asks to calculate in years

there are 12 months in a year. The number of years it will take will be 537/12 = 44.76 years and that’s approximately 45 years

8 0
3 years ago
Which of these careers would not require a university education?
sertanlavr [38]
It would be one of those fast food places and or being a nanny or a gilr for beinga butler u get the point ur welcome.
8 0
3 years ago
In a certain year, the aggregate amount demanded at the existing price level consists of $100 billion of consumption, $40 billio
valkas [14]

Answer:

The answer is: decrease government spending or increase tax rates.

Explanation:

Nominal GDP is currently $170 billions (= $100 billions + $40 billions + $20 billions + $10 billions).

Since full employment GDP = $120 billions, the nominal GDP is much higher ($170 billions > $120 billions). So the government must try to cool the economy and the two main ways it can do it is by reducing government spending or by raising taxes which will lower private consumption.

5 0
3 years ago
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