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
anzhelika [568]
2 years ago
15

On January 1, a company issues 8%, 5-year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market r

ate of interest is 6%. The following information is taken from present value tables: Present value of an annuity (series of payments) for 10 periods at 3%8.5302 Present value of an annuity (series of payments) for 10 periods at 4%8.1109 Present value of 1 (single sum) due in 10 periods at 3%0.7441 Present value of 1 (single sum) due in 10 periods at 4%0.6756 What is the issue (selling) price of the bond
Business
1 answer:
olya-2409 [2.1K]2 years ago
5 0

Answer: $‭325,592

Explanation:

Selling price of bond = Present value of coupon payments + Present value of Par value

No. of periods = 5 * 2 = 10 semi annual periods

Coupon payments = 300,000 * 8% * 1/2 = $12,000

Periodic interest = 6% / 2 = 3% per period

Selling price = (12,000 * Present value of annuity factor, 10 periods, 3%) + (300,000 * Present value of single sum, 10 periods, 3%)

= (12,000 * 8.5302) + (300,000 * 0.7441)

= $‭325,592

You might be interested in
If people have a high degree of _______ one is more likely to want to stay with their current company.
IrinaVladis [17]

If people have a high degree of organizational commitment one is more likely to want to stay with their current company.

Organizational commitment means the connection or the bond that the employees have with their organization or the employer. It all depends upon their psychology that more attachment they have with their employer or the organization more will they want to stay in it.

It defines  different variables such as the job performance of the employees, turnover of the company or the employee employer relationship.

A model of commitment was given by Meyer and Allen in which they defined three types of commitment:

Affective commitment

Continuance commitment

Normative commitment.

To know more about commitment here:

brainly.com/question/24912989

#SPJ4

8 0
1 year ago
With increased economic progress, cultures across the world seem to be moving toward some universally accepted values and norms.
lawyer [7]

Answer:

The correct answer is letter "E": convergence hypothesis

Explanation:

In Economics, the convergence hypothesis describes how increasing industrialization in different countries could lead to transform the economy to an industrialized world where the <em>same societal patterns, ideologies, behaviors, and customs</em> will be spread which is likely to create a global culture.

7 0
3 years ago
Suppose you just won the state lottery, and you have a choice between receiving $2,575,000 today or a 20-year annuity of $250,00
Shkiper50 [21]

Answer:

Ans. rate of return= 7.37%

Explanation:

The easiest way to find this discount rate is to set a MS Excel sheet and use the function "Find Goal". In the attachments, there is a spreadsheet that I got ready for you. There are 2 cells in color, one is yellow and the other one is green. You just go ahead and replace the value of the green cell with any percentage that you want, for example, 2%, then use the function "find goal" and set the objective cell to be the yellow cell (B5), changing the cell in green (B7), and hit enter.

Best of luck.

Download xlsx
8 0
3 years ago
What is the similar about negative growth rate and zero growth rate?
kifflom [539]
The similarity of negative growth rate and zero growth rate is that there is no growth towards a positive output. For example, if the business is currently in either state, it is not earning. It may be very stagnant (for zero growth rate) or losing (for negative growth rate). Which either the case may be, it is not beneficial to the business owner. 
3 0
3 years ago
Read 2 more answers
If nominal GDP is $900 billion and, on average, each dollar is spent six times in the economy over a year, then the quantity of
NeTakaya

Answer:

Option B (150) is the correct answer.

Explanation:

Given:

Nominal GDP,

= $900

Money velocity,

= 6

As we know,

⇒ Nominal \ GDP=Quantity \ of \ demanded \ money\times Money \ velocity

By putting the vales, we get

⇒                    900=Quantity\times 6  

⇒           Quantity=\frac{900}{6}

⇒                           =150

7 0
2 years ago
Other questions:
  • You sit on the board of a public corporation. Your CEO has proposed taking steps to offset the carbon impact of your​ company's
    9·2 answers
  • Professor Quark opens his own company, Electronic Tutorial Services, and completes the following transactions in June:
    12·1 answer
  • On March 28, 2020, a U.S. company issues a purchase order to buy merchandise for NZ$100,000. The company will pay the supplier o
    11·1 answer
  • On January​ 1, 2018, McHenry Manufacturing Corporation purchased a machine for $ 40 600 000. ​McHenry's management expects to us
    5·1 answer
  • At the broadest and vaguest level, cost-benefit analysis may be regarded simply as______________.a. systematic thinking about de
    13·2 answers
  • For a long time, when a team from the American Football Conference won the Super Bowl, the stock market had a bad year; when a t
    6·1 answer
  • Compared to attending a technical school, completing a four-year college degree allows you to
    11·2 answers
  • If total spending rises from one year to the next, then which of the following could not be true?A. the economy is producing a l
    12·1 answer
  • Taryn’s organization places high value on employees who are confrontational and aggressive in their relationships with others. T
    13·1 answer
  • Since stocks can be traded online, which purpose is best served by markets?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!