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
Elanso [62]
3 years ago
14

A 16-year, $1,000 par value zero-coupon rate bond is to be issued to yield 6 percent.

Business
1 answer:
Solnce55 [7]3 years ago
7 0

Answer:

a) $393.65

b) $458.11

c) $217.63

Explanation:

Given data:

16-year  ( n )

$1000 par value  ( FV )

6% ( R )

A) determine the initial price of the bond

 = FV / ( 1 + R ) ^ n

= 1000 / ( 1.06 ) ^ 16

= 1000 / 2.5403 = $393.65

B ) when interest rate drops to 5% determine the value of the zero-coupon rate of bond

 = FV / ( 1 + R ) ^n

 = 1000 / ( 1.05 ) ^ 16

 = 1000 / 2.1829  = $458.11

C ) when interest rate increases to 10% determine the value of the zero-coupon rate of bond

=  Fv / ( 1 + R ) ^ n

=  1000 / ( 1.1 ) ^ 16

= 1000 / 4.5950 = $217.63

You might be interested in
Assume real per capita GDP in West Swimsuit is $10,000 while in East Quippanova it is $2,500. The annual growth rate in West Swi
Alex787 [66]

Answer:

correct option is B. about 30 years

Explanation:

given data

real per capita GDP west = $10,000

annual growth rate = 2.33%

real per capita GDP east = $2,500

annual growth rate = 7%

to find out

How many years will it take for East  to catch up GDP of West

solution

we know here that future value is equal to real GDP of west after time  will be

future value = real per capita GDP west × rate^{t}

future value = 10000 × (1+0.0233)^{t} .....1

and

future value = real per capita GDP east × rate^{t}

future value = 2500 × (1+0.07)^{t} .....2

compare equation 1 and 2

10000 × (1+0.0233)^{t}  = 2500 × (1+0.07)^{t}

4 (1.0233)^{t}  =  (1.07)^{t}

t = about 30 years

so correct option is B. about 30 years

5 0
3 years ago
The Revenue Reconciliation Act of 1993 modified the 1986 passive loss restrictions by allowing individuals who materially partic
solong [7]

Answer:

The answer is "50%"

Explanation:

Modify the state budget Act of 1974 to boost the FY in 1994 and 1995. It is the maximum federal debt quantity and also to set these other quantities for FY 1996 to 1998. Repudiates in the 1994 and 1995 boundaries on consumption spending.

In the Act of 1993, it modifies the 1986 active losses restrictions so, that it allowed rental damages from other revenues to also be deducted from persons who significantly participated such rental properties.  

The person may allocate 50% to his time towards services rendered throughout a tax year from the business.

4 0
4 years ago
_____ gives employers the benefit of keeping an experienced worker and gives older people a chance to make a continued contribut
Lunna [17]

Phased retirement gives employers the benefit of keeping an experienced worker and gives older people a chance to make a continued contribution at a more relaxed pace.

<h3>What is Phased retirement ?</h3>
  • A human resource's strategy called phased retirement enables full-time employees to work part-time hours while starting to receive retirement benefits.
  • Employers may be able to better manage or even lower payroll costs during the transition by utilizing phased retirement.
  • This plan enables the retiree to work less hours, often switching from full to part-time, and uses less payroll funds.
  • It is completely optional and requires the agreement of both the employee and the hiring organization.
  • An employee must have worked three years straight at a full-time job in order to be eligible to participate.

Learn more about retirement here:

brainly.com/question/14502477

#SPJ4

4 0
2 years ago
ints) During 2018, Falwell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstandin
Butoxors [25]

Answer: $4.34

Explanation:

The net income for diluted earnings per share will be calculated as:

Net income: $2,500,000

Less: preferred dividend: $300,000

= $2,200,000

To calculate the number of shares goes thus:

Total shares of stock options = 10,000 × 20 = 200,000 shares

Proceeds = 200,000 × $29

= $580,000

Shares of treasury stock will be:

= $580,000/$30

= 193,333 shares

Net shares added will be:

= 200000 - 193333

= 6667

Tge total shares for the diluted earnings per share will now be:

= 500,000 + 6667

= 506,667

The diluted earnings per share:

= $2,200,000/506667

= $4.34

8 0
4 years ago
At its simplest, acquisition management can be viewed as:
Goryan [66]

Answer:

The correct answer is letter "D": project management plus operations management.

Explanation:

Acquisition management refers to all the efforts a company makes to obtain the materials necessary for the operations process stage to take place. Labor, land, and equipment are the main factors that the company must acquire to make its project become true. Under that scenario, project management and <em>operations management </em>are the core of the <em>acquisition management</em>.

3 0
3 years ago
Other questions:
  • Wassim Masood has been the webmaster for Woori Finance only ten days when Woori's website was flooded with access attempts. Wass
    9·1 answer
  • What is a system involving the use of the experience, knowledge, and attentiveness of all crew members in the decision making pr
    5·1 answer
  • If you earned $10-an-hour in 2005 when the cpi was 100, and you earn $11-an-hour today when the cpi is 120, then your real wage
    10·1 answer
  • It is possible to use a decision making process for any decision.
    11·2 answers
  • An American company is in a joint venture with an overseas Middle East company. The U.S. managers are particular about time mana
    13·1 answer
  • Balance sheet accounts Group of answer choices 1. are called real accounts 2. have zero balances after the closing entries have
    12·1 answer
  • "Jason likes to drink a particular brand of soda and has been drinking that brand of soda for the last ten years. Lately, one of
    9·1 answer
  • Financing With Stock. Chapman Co. is a privately owned MNC in the U.S. that plans to engage in an initial public offering (IPO)
    15·1 answer
  • A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this,
    11·1 answer
  • you are purchasing a used car and will make 5 annual payments of $3,500 starting one year from today. if your funds could be inv
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!