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Misha Larkins [42]
3 years ago
13

BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid quarterly and four years remaining unt

il maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 14 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Business
1 answer:
Furkat [3]3 years ago
4 0

Answer:

$788.35

Explanation:

In this question, we use the present value formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Future value = $1,000

Rate of interest = 14% ÷ 4 quarters = 3.5%

NPER = 4 × 4 quarter = 16 years

PMT = $1,000 × 7% ÷ 4 quarters = $17.50

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $788.35

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rosijanka [135]

Answer:

(A) A wholly owned Subsidiary

Explanation:

A wholly owned subsidiary is a company that is completely owned by another company called the Parent/Holding Company. The parent company will hold all (100%) of the subsidiary's common stock.

A wholly owned subsidiary allows the parent company to diversify, manage, and possibly reduce its risk.

Some of the disadvantages of a wholly owned subsidiary include the possibility of multiple taxation, lack of business focus, and conflicting interest between subsidiaries and the parent company if not properly managed.

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3 years ago
They have each been working​ full-time jobs on a design team for a​ high-tech firm. They decided to approach their manager with
harkovskaia [24]

Answer:

Job sharing

Explanation:

Job sharing here is a technique whereby the two people share a full-time job responsibilities into a part-time roster to finish off the job one person has been doing in a single full-time job. This redesign technique usually occurs where the workers are looking for a way to reduce their workload without quitting the job entirely or done to give more attention to a loved one at home.

7 0
3 years ago
What is interest earned on bonds called?
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They are called fix income securities 
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3 years ago
You need $120,000 to start your business. You plan to invest $54,000 in the business and obtain financing from outside investors
bonufazy [111]

Answer:

45%

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=

54/120

8 0
3 years ago
A bank loans money at an annual rate of 20 percent. Interest is compounded daily. What is the actual rate the bank is charging?
NeX [460]

Answer:

22.13%

Explanation:

The effective annual rate formula below can be used to determine the actual rate charged by the bank as follows:

Effective annual rate=(1+APR/n)^n-1

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Effective annual rate=(1+20%/365)^365-1

Effective annual rate=1.221335858 -1

Effective annual rate=22.13%

The actual rate of interest on bank loan is 22.13%

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