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Oksanka [162]
3 years ago
10

Kasey Corp. has a bond outstanding with a coupon rate of 5.86 percent and semiannual payments. The bond has a yield to maturity

of 4.3 percent, a par value of $2,000, and matures in 24 years. What is the quoted price of the bond
Business
1 answer:
BaLLatris [955]3 years ago
3 0

Answer:

Market price = $2,464.21

Explanation:

coupon rate = 5.86% / 2 = 2.93%

YTM = 4.3% / 2 = 2.15%

face value = $2,000

periods to maturity = 24 x 2 = 48

Present value of face value = $2,000 / (1 + 2.15%)⁴⁸ = $720.42

Present value of coupon payments = $58.60 x {[1 - 1/(1 + 0.0215)⁴⁸ ] / 0.0215} = $1,743.79

Market price = $2,464.21

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Gammy Corporation provides services with a normal price of $800,000 and a trade discount of $100,000. Terms are 2/10, n/30 and t
oee [108]

Answer:

$686,000

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net service revenue = gross revenue - discount for early payment

gross revenue = total sales price - trade discount

gross revenue = $800,000 - $100,000 = $700,000

net service revenue = $700,000 - 2%($700,000) = $700,000 - $14,000 = $686,000

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A feature of monopoly that leads to unfavorable consequences is that it:
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Permanent tax cuts shift the AD curveSelect one:a. farther to the left than do temporary tax cuts.b. not as far to the right as
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Answer:

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Richard Redden, the sole stockholder, contributed $71,000 in cash and land worth $132,000 in exchange for common stock to open a
Aloiza [94]

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7 0
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