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3 years ago

A corporate bond backed only by a company's promise to pay is called a

1 answer:

5 0

<span>A corporate bond backed only by a company's promise to pay is called a debenture bond. There is no collateral offered and the parties are acting on faith and predictions in this transaction.</span>

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Ben katchor used _____ to create multiple locations for the production of the slugbearers of kayrol island.

Aleonysh [2.5K]

<span>Ben katchor used projections to create multiple locations for the production of the slugbearers of kayrol island.

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</span>

7 0

3 years ago

Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc

valentinak56 [21]

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77 x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

8 0

3 years ago

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:Beginning Endin

LenKa [72]

Answer:

Raw materials purchased = $111,000

Explanation:

given data

Beginning Ending

Raw materials inventory $47,000 $50,000

Finished goods 58,000 50,000

raw materials use manufacturing = $108,000

solution

we get here Raw materials purchased that is express as

Raw materials purchased + beginning raw material = ending Raw materials + Raw materials used ...................1

put here value and we get

Raw materials purchased = $50,000 + $108,000 - $47,000

Raw materials purchased = $111,000

6 0

3 years ago

A 30-year maturity bond making annual coupon payments with a coupon rate of 8.5% has duration of 12.88 years and convexity of 23

marin [14]

Answer:

a. Predicted Price = $1815.52

b. Predicted Price = $1,834.64

c. Predicted Price = $1425.4

Explanation:

The actual price of the bond as a function of yield to maturity is:

Yield to maturity --- Price

7% $1,620.45

8% $1,450.31

9% $1,308.21

Using the Duration Rule, assuming yield to maturity falls to 6%:

Predicted price change = (-D/(1 + y)) * ∆y * Po

Where D = Duration = 12.88 years

y = YTM = 7%

∆y = 6% - 7% = -1%

Po = $1,620.45

So, Predicted Change = (-12.88/(1 + 0.07)) * -0.01 * 1,620.45

Predicted Change = 195.0597757009345

Predicted Change = $195.06 ----- Approximated

Therefore the new Predicted Price

= $1,620.46 + $195.06

= $1815.52

Using Duration-with-Convexity Rule, assuming yield to maturity falls to 6%

Predicted price change

= [(-12.88/(1 + 0.07)) * (-0.01) + (½ * 235.95 * (-0.01²))] * 1,620.45

= 214.1770345759345

= $214.18 ------ Approximated

Therefore the new Predicted Price

= $1,620.46 + $214.18

= $1,834.64

Using the Duration Rule, assuming yield to maturity rise to 8%:

Predicted price change = (-D/(1 + y)) * ∆y * Po

Where D = Duration = 12.88 years

y = YTM = 7%

∆y = 8% - 7% = 1%

Po = $1,620.45

So, Predicted Change = (-12.88/(1 + 0.07)) * 0.01 * 1,620.45

Predicted Change = -195.0597757009345

Predicted Change = -$195.06 ----- Approximated

Therefore the new Predicted Price

= $1,620.46 - $195.06

= $1425.4

4 0

3 years ago

Currency that derives its value from the amount printed on it rather than from the value of the paper or metal from which it is

labwork [276]

Currency that derives its value from the amount printed on it is known as fiat money.

<h3>What is fiat money?
</h3>

Fiat money is currency whose value is not backed up by any asset. The value of fiat money is dependent on the amount printed on it. This differs from representative money whose value depends on the value of the metal from which it is made from.

To learn more about money, please check: brainly.com/question/940436

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7 0

2 years ago