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sertanlavr [38]
3 years ago
5

Dufner Co. issued 14-year bonds one year ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on

these bonds is 5.6 percent, what is the current dollar price assuming a par value of $1,000
Business
1 answer:
valentinak56 [21]3 years ago
4 0

Answer:

Bond price= $1,210.4

Explanation:

Giving the following information:

Coupon rate= 0.079/2= 0.0395

YTM= 0.056/2= 0.028

Face value= $1,000

n= 13*2= 26

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond price= 39.5*{[1 - (1.028^-26)]/0.028} + [1,000 / 1.028^26]

Bond price= 722.67 + 487.73

Bond price= $1,210.4

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The answer is functional.

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This is apparent in the example, with classifications such as accounting department and customer service department. Other examples would be marketing department and research & development department.

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3 years ago
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At the point of sale, there is an increase in the effect on the cash flow of abc.

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A cash flow is a real or virtual movement of money.

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6 0
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Sara spends $25 for an all-day ticket to an amusement park. After one ride, it begins to rain and she wishes she had never come.
iren2701 [21]

Answer:

False.

Explanation:

False, it is given that Sara spends $25 for all-day ticket in the amusement park. However, this is a shuck cost that she can not recover. Moreover, she has taken one ride so marginal analysis shows that all his $25 is not wasted. She has utilized some portion of their money so we can not say that she has wasted all his money.

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I will not be able to illustrate the graph in the dialog box but instead, the writer will describe the long-run equilibrium of transnet. Long-run equilibrium in economics focuses on the period of time where the resource is still available and what is its costs and quantity produced. 
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Zolol [24]

Answer: C. Decreasing returns to scale

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