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QveST [7]
3 years ago
8

BSW Corporation has a bond issue outstanding with an annual coupon rate of 5.4 percent paid quarterly and four years remaining u

ntil maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 11 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
In-s [12.5K]3 years ago
3 0

Answer:

$820.74

Explanation:

Rate = 11%/4 = 0.0275

Nper = 4*4 = 16

Pmt = 1000*5.4%*1/4 = $13.50

Fv = $1,000.00

Present value of bond = PV (Rate, Nper, Pmt, Fv)

Present value of bond = PV(0.0275, 16, 13.50, 1000)

Present value of bond = $820.74

So, the fair present value of the bond if market conditions justify a 11 percent, compounded quarterly is $820.74

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The principal components of a master budget include D. All of the above.

<h3>What is a budget?</h3>

A budget simply means an estimate of the income and expenditure for a particular period.

In this case, the principal components of a master budget include production budget, capital expenditures budget, and sales budget. Therefore, it's all of the above.

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Emerald Jewelery Store had a credit balance in interest payable of $200 at the beginning of the period, and a credit balance of
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Answer:

Net income will be decreased by $150.

Explanation:

Given:

The credit balance of interest payable (Opening) = $200

Credit balance of interest payable (Closing) = $50

Net income will be decreased by $150.

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Decreased net income = $150

The interest of $150 was paid which would reduce the net profit.

7 0
3 years ago
An occupation as a Loan Officer would be in which career pathway of Finance?
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Some loan officers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as experience in sales, customer service, or banking. 

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