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zheka24 [161]
2 years ago
11

Stealth Fitness Center issues 7%, 15-year bonds with a face amount of $200,000. The market interest rate for bonds of similar ri

sk and maturity is 6%. Interest is paid semi-annually. At what price will the bonds issue
Business
1 answer:
Vladimir [108]2 years ago
8 0

Answer:

market price of bonds = $219,597.35

Explanation:

Since the coupon rate is higher than the market rate, the bonds will be sold at a premium.

PV of face value = $200,000 / (1 + 3%)³⁰ = $82,397.35

PV of coupon payments = $7,000 x 19.600 (PV annuity factor, 3%, 30 periods) = $137,200

market price of bonds = $219,597.35

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A company paid ​$140 comma 000 for a new​ 18-wheeler. When it is 11 years old it will be worth ​$30 comma 000. Using​ straight-l
ser-zykov [4K]

Answer:

V(n)=140,000-10000n

V(7)=$70,000

Explanation:

Purchase Cost= $140,000

Value After 11 Years =$30,000

Depreciation per Year = \frac{140000-30000}{11}  = \frac{110000}{11} =10000

The truck depreciates at a rate of $10000 per year.

Using​ straight-line depreciation, the value of the truck in​ dollars, V

The linear function of its age in years n, V(n)=140,000-10000n

When the truck is 7 years old

n=7

Truck's Value, V(n)=140,000-10000n

=140,000-(10000X7)

=140,000-70000

=$70,000

4 0
2 years ago
Josie is trying to figure out how to implement her investing strategy. She wants to compare online
cluponka [151]

Considering the situation described above, the 2 questions that Josie should consider during her research include "<u>In your respective industry, what is the most important advice you can give to a first-time investor.?"</u>

The other question Josie should consider during her research include:

<u>Considering the current pandemic period, which line of investment has stood the test of time?</u>

These questions is expected to yield answers that would guide Josie on how to implement her investment strategy to yield desired results.

Hence, in this case, it is concluded that Josie needs to ask the right questions to give her informative answers that can be used in the investment implementation.

Learn more here: brainly.com/question/17728414

5 0
3 years ago
Raul, a salesperson for the lovely landscapes landscaping company, is working with a longtime customer who is interested in eith
Alik [6]
The answer is contingency design. It is the sum incorporated into a development spending plan to take care of extra expenses for conceivable outline changes. The measure of possibility fluctuates with the phases of outline. As the plan is finished, the possibility ought to be diminished to almost zero for most school ventures.
7 0
3 years ago
Prior to the early twentieth​ century, a worker who was injured on the job could collect damages only by suing his employer. To
soldi70 [24.7K]

Answer:

Wages would fall due to an increase in labor costs.

When the workers compensation laws were not there, the employers only had to worry about one labor cost, that of paying their employees. With the introduction of worker's compensation, they then had to get insurance for their employees as well.

This led to an increase in the costs of labor which meant an increase in production costs and a decrease in profitability. To compensate for this, the employers cut wages in order to be able to pay for both the insurance and wages and still pay the same general amounts they were paying as wages such that their production costs don't rise significantly.

3 0
3 years ago
Joe and Mike have been friends since college and both work in the financial industry. The two work for two un-affiliated broker/
castortr0y [4]

Answer:

A) Because Joe and Mike work for un-affiliated broker/dealers, they are not permitted to share or split commissions, making this arrangement un-acceptable.

Explanation:

Even though Joe and Mike are friends and know each other for a long time, in the real world where money has an almost divine status, they must follow the rules. Commissions can only be split between agents that work for the same broker-dealer firm and are registered to work in the same state.

Since Joe and Mike work for unaffiliated broker-dealers, they cannot share clients or split commissions. Following the rules will not only help them professionally, but probably will help their friendship.

5 0
3 years ago
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