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xxTIMURxx [149]
3 years ago
11

Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 39 years. The bonds have an annual coupon rate

of 8.0% with semi-annual coupon payments. You would expect a quoted annual return of 9.0% if you purchased these bonds. What are the bonds worth to you
Business
1 answer:
nata0808 [166]3 years ago
3 0

Answer:

$892.48

Explanation:

Time = 39 years*2 = 78 periods

Coupon rate = 8%/2 = 4%

Coupon payment = 0.04*1,000 = $40

Annual return = 9%/2 = 4.5%

FV= 1,000, PMT= 40, N= 78, I/Y= 4.5

Worth of bond = PV(Fv, Pmt, N, I/Y)

Worth of bond = PV(1000, 40, 78, 4.5%)

Worth of bond = $892.48

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nexus9112 [7]

Answer:

an Evi score of 32 or below

Explanation:

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4 0
4 years ago
Final customers or users are normally asked to pay ______________ prices for products they buy. 1. basic list 2. unchanging list
bulgar [2K]
<span>Usually final customers pay basic list prices. A list price is what the manufacturer suggests the retail price is. This type of price is determined by supply and demand. It is usually the initial asking price. The basic price is the amount receivable by the producer from the purchaser for a good or service that is produced minus the taxes.</span>
5 0
3 years ago
This activity is important because marketing managers must discover what prospective customers need and want. Marketing managers
RUDIKE [14]

Answer:

Note: See table attached to question below to fully understand

Marketing mix         Business traveller      Luxury traveller

element                        segment                      segment

<em>Product strategy</em>        Luxury car                 SUV or Minivan

<em>Price strategy</em>             Premium                   Saver

<em>Promotion strategy</em>    Gold club                  Free car seat

<em>Place strategy</em>             Airport hubs             Park access

8 0
3 years ago
Cutter Enterprises purchased equipment for $84,000 on January 1, 2018. The equipment is expected to have a five-year life and a
Anna71 [15]

Answer:

$25,200 and $58,800

Explanation:

The computation of the depreciation expense and the book value using the sum-of-the-years'-digits method is shown below:

The depreciation expense is

= (Purchase cost - residual value)  × useful life ÷ (sum of years)

= ($84,000 - $8,400) × 5 years ÷ (1 + 2 + 3 + 4 + 5)

= $75,600 × 5 years ÷ 15 years

= $25,200

And, the book value is

= Purchase cost - depreciation expenses

= $84,000 - $25,200

= $58,800

We simply applied the above formulas

6 0
4 years ago
There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second house
11Alexandr11 [23.1K]

Answer:

regressive

Explanation:

A regressive tax is basically a tax whose rate increases as your income decreases. Generally you do not need to increase the marginal tax rate of lower income levels, all you need to do is have a flat tax that taxes everyone with the same amount. E.g. everyone pays $2,000 as income taxes. $2,000 per person represents 10% of the first household's income, but it only represents 2.7% of the fourth household's income.

On the other hand, progressive taxes increase as the income level of the taxpayers increases.

8 0
3 years ago
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