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ella [17]
3 years ago
6

The Whitesell Athletic Corporation's bonds have a face value of $1,000 and a 10% coupon paid semi-annually. The bonds mature in

10 years. If the yield to maturity (YTM) is 7%, what will the bond sell for
Business
1 answer:
aniked [119]3 years ago
3 0

Answer:

Bond Price = $1213.18605 rounded off to $1213.19

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1,000 * 0.10 * 6/12  = $50

Total periods (n) = 10 * 2 = 20  

r or YTM = 0.07 * 6/12 = 0.035

The formula to calculate the price of the bonds today is attached.

Bond Price = 50 * [( 1 - (1+0.035)^-20) / 0.035]  + 1000 / (1+0.035)^20

Bond Price = $1213.18605 rounded off to $1213.19

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False I believe! Hope this was correct for you..
4 0
3 years ago
Yesterday they received a cold call from a stockbroker wanting to sell them an initial public offering in a cable television com
worty [1.4K]

Answer:

The correct answer is the option A: They should definitely not invest with this or any other broker who makes cold calls promising unlimited returns or guarantees against losses for an investment.

Explanation:

To begin with, the common people should never or at least the major of the times invest in with brokers who call directly to the person without even knowing them, due to the fact that there are plenty of broker who are not even legally registered and therefore that they can promised everything but later give nothing and even more it does not matter a writing condition due to the fact that most of the times there are always broker prepared for this type of situation.  

8 0
3 years ago
In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the le
taurus [48]

Answer:

245 units reduction.

Explanation:

What is safety stocks?

Safety stocks can be defined as the extra stock that is been kept by business organizations in order to minimize their risk. One can not successfully say that an amount of a material will be need at a particular period of time by the consumers and this is the reason many companies or industries or business organizations do keep safety stocks in their inventory.

So, let us proceed in to solving the question.

The parameters given in the question are; lead time = 5 weeks, standard deviation of demand during the lead time = 85 units, desired cycle-service level = 99%.

We can calculate the value of units for the Reduction in safety stocks by using the formula below;

Reduction in safety stocks=safety stocks - revised safety stocks.

Reduction in safety stocks = 443 - (2.33 × 85 units × 1 week lead time)

Reduction in safety stocks = (443 - 198) units = 245 units.

Note that 2.33 is from the 99% service level) and the 443 is from the 5 weeks lead time which can be Calculated using; (maximum daily usage × maximum lead time in days) - (average daily usage) × average lead time in days.

7 0
3 years ago
If an individual has a balance on her credit card, but would like to pay less money in the long run, she should _____. make the
jolli1 [7]
If you have a balance on your credit card but you would like to pay less money in the long run, you should pay as much as possible every month. 
5 0
4 years ago
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The one that is not considered a liquid investment is: Cookie jar
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6 0
4 years ago
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