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Gelneren [198K]
2 years ago
7

Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is

$1,000. If the going annual interest rate is 8%, what is the value of the bond?
Business
1 answer:
kirill115 [55]2 years ago
5 0

The value of the bond is $865.80.

<h3>What is a bond?</h3>

A bond is a debt instrument used to raise capital. Bondholders receive periodic interest payment. At the maturity of the bond, the bondholders receive the amount invested.

<h3>What is the value of the bond?</h3>

The value of the bond can be determined by calculating the present value of the bond. The present value is the sum of the discounted cash flows.

Present value = (60 / 1.08) +  (60 / 1.08^2) +  (60 / 1.08^3) +  (60 / 1.08^4) +  (60 / 1.08^5) +  (60 / 1.08^6) +  (60 / 1.08^7) +  (60 / 1.08^8) +  (60 / 1.08^9) +  (60 / 1.08^10) +  (1000 / 1.08^10) = $865.80

To learn more about present value, please check: brainly.com/question/25748668

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The theory of purchasing power parity assumes that.
Maurinko [17]

PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

<h3 /><h3>What is purchasing power parity?</h3>

Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.

Therefore the above statement explains the purchasing power parity.

Learn more about purchasing power parity here:

brainly.com/question/2286004

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5 0
2 years ago
Can I own a prepaid debit card if I'm underage? (not a joint one, like literally own it by me) lol​
EastWind [94]

Answer:

No

Explanation:

Most banks require you to be either of age, or have a joint account with either a parent or guardian. It really depends on the bank.

4 0
3 years ago
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quester [9]

Answer:

Explanation:

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Units Per Batch 7000 3000

Hours Per Unit   1         1

Total Hours         7000 3000

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Selective attention is a concept in Psychology which describes the various steps or processes put in place to avoid unimportant, unnecessary and unwanted Information or Communication and focus fully on a selected Information or Communication.

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