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Ivenika [448]
3 years ago
8

Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bond

s' market rate is:
a. 10% per year compounded semiannually.
Round your answers to the nearest dollar.
Business
1 answer:
kvv77 [185]3 years ago
3 0

Answer:

Zero-cupon bond= $376,889.48

Explanation:

Giving the following formula:

Face value= $1,000,000

Mature= 10*2= 20 semesters

Market rate= 0.1/2= 0.05

<u>To calculate the price of the bond, we need to use the following formula:</u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000,000 / (1.05^20)]

Zero-cupon bond= $376,889.48

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Alex_Xolod [135]

Answer:

$56,703      

Explanation:

P=R(1-(1+i)^-n/i

Where P=500,000

R=?

i=10%

n=15

500,000=R(1-(1+.1)^-15/.1

R=500,000/7.61

R=$56,703            

8 0
4 years ago
Faller and Whitney Company, a firm that builds enterprise resource planning products for customers, wants to implement training
Arisa [49]

Answer:

Faller and Whitney should perform an organization analysis in order to assess the training needs within the organization.

Explanation:

A training instructional design process is a process that systematically develops training procedures to meet specific needs.

The steps involved in the development of an instructional design process are:

  1. Determine needs for training : employees that work in what areas and perform what tasks need training
  2. Ensure readiness for training : the employees must be willing to trained
  3. Plan the training program: set the objectives, who will be the trainers, and what methods  will be used
  4. Implement training program
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6 0
3 years ago
Annual percentage rate (APR) is:
uysha [10]

Answer:

B.The total cost of a loan per year expressed as a percentage

8 0
3 years ago
The Dominican Republic and Nicaragua both produce coffee and rum. The Dominican Republic can produce 20 thousand tons of coffee
Dafna11 [192]

Answer:

The answer should be un terms of the traded goods. In the case of the minimum price of rum, it is 0.5 barrels of rum per one ton of coffee. In the case of the maximum price of coffee, it is 6 tons of coffee per barrel of coffee.

Explanation:

These values come from the analysis of opportunity cost that both countries have at the moment of use the production capacity: if the Dominican Republic decides to produce rum, then it would give up on coffee. The same with Nicaragua, when it chooses to produce coffee, it gives up producing rum. The potential trade opportunities arise in the mix of prices where both countries can take benefit form the exchange of goods (obtaining more of one product than producing with its own capacity). This is called comparative advantages, and it is a theoretical justification of international trade.

7 0
3 years ago
What rule is important to remember when evaluating risk and return? The higher the risk, the higher the potential return. The hi
andrew-mc [135]

Answer: The higher the risk, the higher the return.

Returns from an investment refers to the gains or losses over a specified period, and is quoted as percentage.  

Risk refers to the possibility or the chance that the actual return that is earned is greater than or less than the return expected by the investor. Thus, uncertainty is another name for risk.  

If the returns from an investment are certain, the risk involved is low. When risk is low, the returns are also low. For e.g. the return from a T-bill is low because the risk of default is zero, since the government can print money to fund its debt.  

The higher the level of risk involved, the greater the potential for a higher return.  

5 0
4 years ago
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