1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Many of the negative effects companies have on the environment could be offset by _________ government regulation, but such regu
Alex

Answer:

Increased, Negatively

Explanation:

Government regulations are important to eliminate the negative effect of companies and industries on the overall environment. Government regulations help to apply certain restrictions which help to improve the environment and surrounding, but at the same time, it negatively affects the profitability of the companies. Overall, the government must implement policies to resolve environmental problems but such regulation should not negatively affect the industry and the economy.

6 0
3 years ago
Country X has currency C1 and Country Y has currency C2. The nominal exchange rate C2/C1 and GDP deflator P for Country X and P*
Kaylis [27]

Answer:

Explanation:

a)  

Year             percentage increase

2011               21.21162

2012       14.35054

2013       20.62696

b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to;   Decline

c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a lower rate of inflation compared to Country X  

d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is disparity in the real exchange rate.

3 0
3 years ago
Gimbly Cricket Corp. created a decision aid, linked to its data warehouse, to enable senior management to monitor, in real time,
Studentka2010 [4]

Answer: Internal and non financial reporting

Explanation: Internal reporting refers to performance reporting by the workers of the organisation to the upper level management, who are responsible for decision making.

Non financial reporting refers to the reporting of information related to the social, environmental and cultural aspects of an organisation.

In the given case, Gimbly is making changes in the warehouse system so that top managers can have information about the business environment change.

Hence, we can conclude that It is an example of Internal and non financial reporting.

5 0
3 years ago
The following materials standards have been established for a particular product: Standard quantity per unit of output 6.0 meter
kherson [118]

Answer:

See below

Explanation:

First, we have to compute the actual price

Actual price = Actual cost of material purchased × Actual material purchased

= $201,500 ÷ 10,200 metres

= $19.75

Therefore,

Material price variance

= Actual quantity × (Actual price - Standard price)

= 10,200 × ($19.75 - $19)

= 10,200 × $0.75

= $7,650 favourable

3 0
3 years ago
Based on the corporate valuation model, Bernile Inc.’s value of operations is $750 million. Its balance sheet shows $50 million
NemiM [27]

Answer:

$500 million

Explanation:

Assets - Liabilities

= $750 - ($50+$100+$200+$100)

= $750 million - $450 million

=$300 million

Common stock = $40 million, Retained earnings = $160 miillon

Equity = $160 + $40 + $300 = $500 million

So, best estimate for the firm’s value of equity is $500 million.

3 0
3 years ago
Other questions:
  • Why are online retailers taking so much market share from the traditional brick-and-mortar stores?
    6·1 answer
  • Which option lists the steps to generate a weather forecast in the correct order?
    7·1 answer
  • How to email school for absence due to family emergency?
    6·1 answer
  • A spa owner gives a survey to all of her customers asking them to rate the quality of the service they received. she then keeps
    9·2 answers
  • Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payable increased $5,400. There were no
    5·1 answer
  • By instituting government oversight on banks and investments, Franklin Rooseveltreinforced the policies of Herbert Hoover.hoped
    7·1 answer
  • On January 2, 20X5, Park Co. purchased 10 percent of Sky, Inc.'s outstanding common shares for $400,000. Park is the largest sin
    9·1 answer
  • Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the em
    12·1 answer
  • Arjen owns investment A and 1 bond B. The total value of his holdings is 1,529 dollars. Investment A is expected to pay annual c
    5·1 answer
  • In Marigold Company, Treasury Stock increased $20600 from a cash purchase, and Retained Earnings increased $80400 as a result of
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!