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
scoundrel [369]
2 years ago
14

Leggio Inc. issued bonds with a 30-year maturity one year ago. The bonds have a 7% coupon, make one payment per year, and sold a

t their $1,000 par value at issue because the going market rate at the time was 7%. Now, one year later, the market rate has declined from 7% to 5%. At what price should Leggio's bonds now sell?
Business
1 answer:
Talja [164]2 years ago
3 0

Answer:

$1,302.82

Explanation:

The computation of the price that need to sell the bond is shown below:

Here we calculate the present value for the same

Given that

RATE = 5%

NPER = 30 - 1 = 29

PMT = $1,000 × 7% = $70

FV = $1,000

The formula is shown below:

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $1,302.82

You might be interested in
On July 1, Stan, a steel manufacturer, telephoned Byron and offered to sell Byron six carloads of steel at $600 a ton. Byron sai
Viktor [21]

<u>Explanation:</u>

In the given case it is valid contract as there is time, promise, benefit and obligation to do thing. But verbal contracts are difficult to prove. Stan and Byron have a verbal contract which is a promise for 10 days and the contract has exchange of goods for $600. Offer is made by Byron but the acceptance is not yet given by Stan.

Here only the offer is made and it is not yet accepted by Byron. here Stan has revoked the offer through letter so the revoke has been communicated to the other party through letter. So in this case there is no breach of contract as the contract was clearly revoked by Stan through his letter.

7 0
3 years ago
What is the difference between limited liability and unlimited liability
SOVA2 [1]

Answer:

Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.

Explanation:

5 0
2 years ago
__________ is marketing research to better describe marketing problems, situations, or markets such as the market potential for
Alenkasestr [34]

Answer:

<em><u>Marketing</u></em><em><u> </u></em><em><u>research</u></em><em> </em><em>is marketing research to better describe marketing problems, situations, or markets such as the market potential for a product or the demographics and attitudes of consumers.</em>

<em>What </em><em>is </em><em>marketing</em><em> </em><em>research</em><em>?</em><em> </em>

<em>Marketing research is the process of designing, gathering analyzing and reporting information that may be used to solve a specific marketing </em><em>problem.</em>

3 0
2 years ago
Short notes on foods for bee​
inna [77]

Answer:

The answer to this question varies depending on what their role is in the hive. For example, many worker bees eat the same exact foods such as honey, pollen, and nectar. However, the elusive queen bees (less common in a hive) are typically fed a different diet while growing up to change their overall larval development.

8 0
2 years ago
Read 2 more answers
Both seashells and corn have been used as money in the past. Which do you think is a better choice? Explain your answer by refer
Katarina [22]

Answer:

Seashells  were better than corn.

Explanation:

I think shells were the better choice. They were also used as ornaments. The shells were very easy to use and durable. Payments were made using shells. The shells are considered as the oldest form of currency and they originated in ancient China.

It helped in a growing trade. Shells were the part of commodity money.Sea shells were used as a whole or partial. Shells were used either in the shape of beads or artificially shaped.

5 0
2 years ago
Other questions:
  • There will be a higher equilibrium price and lower quantity if _____.
    14·1 answer
  • Why is the interest rate of a loan one of the most important things to consider when shopping around for loans?
    5·2 answers
  • Blank is a tool of monetary policy in which the Federal Reserve buys and sells blank
    10·1 answer
  • HHH Inc. reported $12,500 of sales and $7,025 of operating costs (including depreciation). The company had $18,750 of investor-s
    6·1 answer
  • Which of the following statements is true? A. Expenses are decreased by debits. B. Liabilities are decreased by credits. C. Reve
    9·1 answer
  • Are sources of revenue for both federal and state governments. Individuals pay this tax from the money they
    6·1 answer
  • Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 132 comma 00
    8·1 answer
  • Why is a performance management system superior to a performance measurement system? because performance measurement systems are
    15·1 answer
  • International businesses with markets and production facilities in other countries, or that use materials from different countri
    8·1 answer
  • When gathering information, which of the following tasks might you need to
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!