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Sati [7]
2 years ago
15

Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10

,000 one-year bonds. If the interest rate on the bond falls to 12%, the price of these new bonds is $???
12% = $10000 - X Divided by X Times 100
Business
1 answer:
Anettt [7]2 years ago
6 0

The price of the new bonds given the face value and interest rate is $8,928.57.

<h3>What is the price of the bonds?</h3>

Bonds are debt instruments issued by a firm with the purpose of raising capital to carry out projects. The price of the bonds can be determined by discounting the face value of the bonds by the interest rate.

The price of the bonds = face value of the bonds / ( 1 + interest rate)

$10,000 / (1.12) = $8,928.57

To learn more about bonds, please check; brainly.com/question/8917277

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Answer:

Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.

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Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.

4 0
3 years ago
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middle management

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3 years ago
The cost of an inventory item includes its invoice cost plus any added or incidental costs necessary to put it in a place and co
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statement is true

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6 0
3 years ago
Which type of risk is most significant for bonds?
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The EAFE is:_____A) the East Asia Foreign Equity index.B) the Economic Advisor's Foreign Estimator index.C) the European and Asi
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Answer:

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Explanation:

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