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
mariarad [96]
2 years ago
10

After a major earthquake, the San Francisco Opera Company is offering zero coupon bonds to fund the needed structural repairs to

its historic building. Buster Norton is considering the purchase of several of these bonds. The bonds have a face value of $2,000 and are scheduled to mature in 10 years. Similar bonds in the market have an annual YTM of 12 percent. If Mr. Norton purchases three of these bonds today, how much money will he receive 10 years from today at maturity
Business
1 answer:
tekilochka [14]2 years ago
3 0

Answer:

Buster Norton and the Bonds of San Francisco Opera Company

If Mr. Norton purchases three of these bonds today, in 10 years from today at maturity, he will receive:

= $6,000.

Explanation:

a) Data and Calculations:

Face value of each zero coupon bond purchased = $2,000

Number of bonds purchased by Norton = 3

Value of bond investments at maturity = $6,000 ($2,000 * 3)

Maturity period of the San Francisco Opera Company bonds = 10 years

Annual Yield to Maturity of similar bonds in the market = 12%

From an online financial calculator:

Present value of bonds = $1,932 (with each as $644 ($1,932/3))

N (# of periods)  10

I/Y (Interest per year)  12

PMT (Periodic Payment)  0

FV (Future Value)  -6000

 

Results

PV = $1,931.84

Total Interest $4,068.16

You might be interested in
Which country increased their medal count the most from 2010-2018
Vika [28.1K]
 Korea has been steadily increasing their number of participants with every event.
6 0
3 years ago
Meat​ Packers, Incorporated​ (MPI) preserves and packages various kinds of meats for transportation to grocery stores. To prepar
Grace [21]

Answer:

Fixed costs = $13,000

Variable costs = $450,000

Explanation:

Fixed costs are costs that do not vary with production. In this question, they are rent payments and monthly payments on meat packaging equipment.

Fixed cost = $10,000 + $3,000 = $13,000

Variable costs are costs that vary with production. In this question, they are the cost of purchase of raw meat, wages and fuel costs.

Variable costs = ($20 + $90 + $40) × 3000 = $450,000

I hope my answer helps you.

8 0
3 years ago
What was the greatest percentage loss in your total portfolio?
Natasha2012 [34]

-2.99% was the greatest percentage loss in total portfolio.

Subtract the purchase price from the current price and divide the result by the asset's purchase prices to determine the net gain or loss in the portfolio. The above method can be modified to determine a portfolio's percentage return. You will base your calculations on the overall value of your portfolio rather than the stock's acquisition price and market value.

A stock portfolio is a selection of equities you purchase in the anticipation of a profit. You can become a more robust investor by assembling a varied portfolio that spans several industries.

To learn more about portfolio refer here:

brainly.com/question/17165367

#SPJ4

Complete Question:

You'll now need to do some math to compute the percentage change in the value of your total portfolio. For each monthly statement, add up the value of the two funds to get your total portfolio value at the end of that month. Compute the month to month percentage change of the value of your portfolio by subtracting the beginning value from the ending value and then dividing it by the beginning value . What was the greatest percentage loss in your total portfolio?

3 0
1 year ago
Shelley compared the number of oak trees to the number of maple trees as part of a study about hardwood trees and a woodlot she
Masja [62]

There were 72 (108 - 36) more maple trees in the woodlot before the bug problem. There were 108 maple trees in the woodlot before the bug problem. There are 36 maple trees in the woodlot after the bug problem.

The following information is given in the question:

Ratio of maple trees to oak trees before bug problem = 9:5

Ratio of maple trees to oak trees after replanting = 3:11

Total number of oak trees after replanting =132

Total number of trees in the woodlot is the same before and after the bug problem.

Let the number of maple trees after replanting be 'x'

From the data above, we can find the number of maple trees after replanting as follows:

\frac{3}{11} = \frac{x}{132}

\frac{(3*132)}{11} = {x}

x = 36

So, number of maple trees after replanting in the woodlot are 36.

Total number of trees in the woodlot =   No. of maple trees + No. of oak trees.

Total number of trees in the woodlot =  168 (132 + 36)

Let number of maple trees before bug problem be 'z'.

We can find the number of maple trees before bug problem as follows:

\frac{9}{(9+5)} = \frac{z}{168}

\frac{9*168}{14} = z

z = 108

6 0
2 years ago
31. If a company initially records the purchase of supplies to the supplies expende account, the mount of the adjusting entry ma
scoundrel [369]

We can actually deduce here that the amount of the adjusting entry that was made at the end of an accounting period will be equal to the supplies on hand at the end of the period.

<h3>What is accounting period?</h3>

An accounting period is actually known to be the period of time that a particular accounting function is covered. It can be a fiscal year, quarterly, monthly or even weekly.

We see here that the amount of the adjusting entry that was made at the end of an accounting period will be equal to the supplies on hand at the end of the period.

Learn more about accounting period on brainly.com/question/26533843

#SPJ12

6 0
2 years ago
Other questions:
  • When Teresa went into the furniture store to buy a new sleeper sofa, she thought the prices quoted by the salesperson were too h
    8·1 answer
  • What is behavioral tracking?
    7·1 answer
  • On june 30, 2016, colora printers purchaed a printer for 69,000. it expects the printer to last for four years and have a residu
    15·1 answer
  • If a foreign country's consumers tend to only purchase products that are produced locally, the least effective strategy for a U.
    7·1 answer
  • In the Keynesian-cross model, fiscal policy has a multiplied effect on income because fiscal policy: changes income, which chang
    14·2 answers
  • On October 31, 2018, your company's records say that the company has $20,419.93 in its checking account. A review of the bank st
    10·1 answer
  • The _____________ represented sweeping changes to the tax code and reframed the computation of employee income tax.
    7·1 answer
  • A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger.
    14·1 answer
  • If the government subsidizes colleges adn sets the subsidy so that the efficnet number of students entroll, what is the subsidy
    7·1 answer
  • FILL IN THE BLANK. because the market outcomes in a competitive oligopoly are between those of a ___ , deadweight loss still exi
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!