Whatever, Inc., has a bond outstanding with a coupon rate of 5.34 percent and semiannual payments. The yield to maturity is 6.7 percent and the bond matures in 18 years. What is the market price if the bond has a par value of $1,000?
Answers
The market price of the bond is $945.02, calculated using the present value formula with a coupon rate of 5.34%, semiannual payments, a yield to maturity of 6.7%, and a maturity of 18 years.
To calculate the market price of the bond, we need to use the present value formula, which takes into account the coupon payments and the principal repayment at maturity:
PV = \($\frac{C}{(1+r)^1} + \frac{C}{(1+r)^2} + \ldots + \frac{C}{(1+r)^{36}} + \frac{1000}{(1+r)^{36}}$\)
Where:
PV = present value of the bond
C = coupon payment (which is 5.34% of $1,000 per year, or $53.40 per coupon payment)
r = yield to maturity (which is 6.7% per year)
36 = the total number of coupon payments (since there are 2 coupon payments per year for 18 years)
Using a financial calculator or spreadsheet software, we can calculate the present value of the bond to be:
PV = \($\frac{53.40}{(1+\frac{0.067}{2})^1} + \frac{53.40}{(1+\frac{0.067}{2})^2} + \ldots + \frac{53.40}{(1+\frac{0.067}{2})^{36}} + \frac{1000}{(1+\frac{0.067}{2})^{36}}$\)
PV = \($53.40 \times \frac{1 - \frac{1}{(1+\frac{0.067}{2})^{36}}}{\frac{0.067}{2}} + \frac{1000}{(1+\frac{0.067}{2})^{36}}$\)
PV = $718.18 + $227.84
PV = $945.02
Therefore, the market price of the bond is $945.02, which is the present value of all the future coupon payments and the principal repayment at maturity, discounted at the yield to maturity of 6.7%.
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Related Questions
What is a sales forecast?
A. A prediction of what other businesses will make similar products
B. A prediction of how many customers a business will have visit its
store
C. A prediction as to the volume of sales that a business expects to
make in the upcoming future
Answers
A sales forecast is A prediction as to the volume of sales that a business expects to make in the upcoming future. Thus the correct option is C.
What is the objective of the sales Forecast?A sales forecast is a projection of the engagements that will go through the selling process and is a statement of anticipated sales revenue that expresses how much your organization anticipates selling within a specific time frame.
Making well-informed choices about the management of the firm, including decisions about staffing and inventory, new product lines, and prospective marketing initiatives, is aided by sales predictions.
By the use of sales forecasting, firms can more correctly predict their expenses and revenue. Time and money wasted on unsuitable candidates or customers must be reduced for better prospecting.
Therefore, option C is appropriate.
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Dmitri lives in Detroit and operates a small company selling drones. On average, he receives $702,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $402,000. He also pays several utility companies, as well as his employees wages totaling $279,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $8,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Dmitri does not operate the drone business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $8,000 per year rate. There are no other costs faced by Dmitri in running this drone company
Answers
Dmitri's economic profit from operating the drone business is $13,000 per year. In the given scenario, Dmitri's economic profit is positive, indicating that his drone business is generating additional income beyond what he could earn in alternative employment.
Total Revenue: $702,000
Explicit Costs:
- Wholesale cost: $402,000
- Utility expenses + wages: $279,000
Opportunity Costs:
- Foregone rental income: $8,000
- Foregone salary as a programmer: $20,000
Calculating the economic profit:
Total Revenue - (Explicit Costs + Opportunity Costs)
$702,000 - ($402,000 + $279,000 + $8,000 + $20,000) = $13,000
Therefore, Dmitri's economic profit from operating the drone business is $13,000 per year.
This suggests that operating the business is a profitable venture for Dmitri. However, it's important to note that economic profit does not consider all costs, such as the cost of capital and the owner's labor. Additionally, this analysis assumes that the rental income and salary as a programmer are the only feasible alternative uses for Dmitri's resources. Evaluating the long-term sustainability and profitability of the drone business would require considering factors such as market competition, future demand for drones, and potential changes in costs and revenues.
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if the united states has an absolute advantage in producing computer components, it should export them worldwide.T/F
Answers
True. If the United States has an absolute advantage in producing computer components, it should export them worldwide.
Absolute advantage refers to a situation where a country can produce a good or service more efficiently and at a lower cost than other countries. When a country has an absolute advantage in producing a particular product, it means it can produce more of that product using the same amount of resources or produce the same amount with fewer resources compared to other countries.
In this case, if the United States has an absolute advantage in producing computer components, it implies that it can produce them more efficiently and at a lower cost compared to other countries. As a result, it would be beneficial for the United States to export these computer components to other countries where it may be less efficient or more costly for them to produce.
By exporting computer components, the United States can take advantage of its strength in production, tap into international markets, and potentially generate economic benefits through trade.
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Your company has sent you an email telling you your department must increase the daily output goal of 120 widgets per hour, to 126 widgets per hour. Everyone on your team recognizes more efficient production will lead to more profit for the company, and a higher chance for a raise for each of them. As usual, you will hold a brief meeting explaining the new directive and provide the deadline as to when this new daily production goal must be met with regularity. The meeting ends after a couple of clarifying questions and answers, and you and your employees get back to work on meeting the deadline for the new goal. What management theory best describes the management style of this company? What leadership style will you employ to get the required increase in production of widgets your company requested? Why is this leadership style the best fit for this scenario?
Answers
Answer:
Participative Leadership style.
Explanation:
Participative leadership, also known as democratic leadership, is one in which the leader has the central focus of employee engagement and participation in important company decisions. In this style of leadership, the manager has a crucial role of being the main motivator and advisor of the team, being solicitous to guide, coordinate and assist his subordinates in all their work demands, so that the goals and organizational goals are achieved.
This style of participatory leadership would be more appropriate for this scenario as there are deadlines for completing tasks, which requires a motivated and productive team, which is essential in participatory leadership.
The motivation of employees is achieved due to clear and guiding communication from the leader, which creates the perception of inclusion and appreciation of the employee, who feels an essential and important part of the organization.
issued a cheque of rs. 39000 to Saurya stores in full settlement.
journal entry
Answers
Answer:
When issuing a check to a creditor as is being done here, you need to debit the creditors account (Accounts Payable) to show that you are paying off the debt.
You also need to credit cash because a credit will show that cash was used to pay for something and so has reduced.
Date Account Title Debit Credit
XX-XX-XXX Accounts Payable - Saurya Stores Rs. 39,000
Cash Rs. 39,000
mr. diaz needs to park his car and realizes that it would cost the same in both lots. for how many hours does mr. diaz need to park?
Answers
To determine the number of hours Mr. Diaz needs to park his car, we would require more specific information about the parking rates or time increments. Without that information, it is not possible to provide an accurate answer.
The statement mentions that the cost is the same in both lots, but it does not provide any details regarding the hourly rate or any specific time frame. The number of hours Mr. Diaz needs to park his car would depend on his own requirements and the available parking options.
If the cost of parking is the same in both lots, it means that the rate is not dependent on the duration of parking. In this case, Mr. Diaz can park his car for any number of hours without affecting the cost. Whether he parks for one hour or several hours, the cost will remain unchanged.
Therefore, the specific number of hours Mr. Diaz needs to park is not a determining factor in this scenario. He has the flexibility to choose the duration that suits his needs without considering the cost implications since they are identical in both lots.
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zebina purchased an entertainment center for $2,798 using a 12-month deferred payment plan with an interest rate of 21.95%. she did not make any payments during the deferment period. what will the total cost of the entertainment center be if she must pay it off within six years after the deferment period? (4 points) $5,236.80 $6,284.16 $2,798.00 $3,477.88
Answers
B. The total cost of the entertainment center will be $6,284.16 if she must pay it off within six years after the deferment period.
This is because the interest rate of 21.95% will be compounded over the 6 years, leading to an increase in the total cost of the entertainment center.
The compounded interest rate will add to the cost of the deferred payments each year, increasing the amount to be paid each year.
Calculate the total interest of the 12-month deferment period: 2,798 x 21.95% = 609.86
Calculate the total amount payable after the deferment period: 2,798 + 609.86 = 3,407.86
Calculate the total interest payable over the six-year repayment period: 3,407.86 x 21.95% x 6 = 2,876.30
Calculate the total cost of the entertainment center: 3,407.86 + 2,876.30 = 6,284.16
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More than 40% of India’s population lives on less than $1. 25 a day. What kind of standard of living do these people most likely have?.
Answers
Prior to opening the U.S. baseball market to trade, the equilibrium price of a baseball is
a.$12b.$8c.$16d.$10
Answers
The equilibrium price of a baseball prior to opening the U.S. baseball market to trade is $10.
The equilibrium price of a baseball refers to the price at which the quantity demanded by buyers matches the quantity supplied by sellers. In this scenario, prior to opening the U.S. baseball market to trade, the equilibrium price is determined to be $10. This means that at the price of $10, the quantity of baseballs demanded by consumers is equal to the quantity of baseballs supplied by producers.
The equilibrium price is influenced by various factors such as consumer preferences, production costs, and market competition. In this case, the market forces of supply and demand have determined that $10 is the price at which the market is in balance. If the price were higher than $10, the quantity demanded would be lower than the quantity supplied, leading to a surplus. Conversely, if the price were lower than $10, the quantity demanded would exceed the quantity supplied, resulting in a shortage.
Opening the U.S. baseball market to trade could potentially introduce changes to the equilibrium price by altering the supply and demand dynamics. Factors such as increased competition from foreign producers, changes in production costs, or shifts in consumer preferences could lead to adjustments in the equilibrium price of baseballs.
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How does a repo differ from a fed funds transaction? how do their rates compare?
Answers
A repo is basically a collateralized loan, whereas Fed funds are uncollateralized
What is collateralized loan?Collateralized loan obligations are a type of securitization in which payments from many small and big business loans are pooled and distributed to different classes of owners in different tranches. A collateralized debt obligation (CLO) is a type of debt obligation.
The use of a valuable item as collateral to obtain a loan is known as collateralization. If the borrower fails to repay the debt, the lender may seize and sell the asset to make up the difference. Asset collateralization offers lenders with some protection against default risk.
Collateral is a valuable object used to secure a loan. Lenders' risk is reduced by collateral. If a borrower fails on a loan, the lender can seize and sell the collateral to recuperate its losses.
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which cost do economists use in analyzing of the performance of the business? implicit costs neither both explicit costs
Answers
Implicit costs are used by economists in analyzing of performance of the business.
What is an implicit cost?In economics, an implicit cost, also known as an imputed cost, implied cost, or notional cost, is the opportunity cost equal to what a company must forgo in order to employ a piece of production that it already owns and so does not pay rent for. It is the antithesis of an explicit cost, which is paid for up front. In other words, an implicit cost is any expense that arises from using an item as opposed to renting it out, selling it, or using it in an other way. The phrase also refers to lost revenue by choosing not to work. Implicit costs also indicate the difference between accounting profit and economic profit (total revenues minus total costs, where total costs are the sum of implicit and explicit costs).
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give me your best pickup line for brainliest
Answers
Answer:
are u from Tennessee? cause ur the only 10 i see
if i said you had a good body would you hold it against me?
your lips look lonely. would they like to meet mine?
subsequent events occur between the ____ and the ____.
Answers
Subsequent events occur between the reporting period end and the financial statement date.
Subsequent events refer to events or transactions that occur after the end of the reporting period but before the financial statements are issued. These events can have a significant impact on a company's financial position and require disclosure or adjustment in the financial statements. Examples of subsequent events include the resolution of litigation, changes in the financial condition of the company, or the occurrence of a significant business transaction. It is important to consider subsequent events to provide users of financial statements with the most current and relevant information for decision-making. Companies are required to evaluate subsequent events and disclose any material events that could affect the understanding of the financial statements. This ensures transparency and helps stakeholders make informed assessments of a company's financial health and performance. By considering subsequent events, financial statements provide a more accurate representation of a company's financial position at the time of issuance.
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In two to three sentences, compare and contrast distribution by force and distribution by equal sharing.
Answers
Distribution by force and distribution by equal sharing are two different approaches to distributing resources or goods.
Distribution by force is characterized by the use of power or authority to determine who receives what, often resulting in an unequal distribution. On the other hand, distribution by equal sharing involves dividing resources or goods equally among the recipients, regardless of their individual needs or contributions. This method aims to promote fairness and equal treatment among the recipients.
Distribution by force refers to the distribution of resources or goods through the use of power, coercion, or authority. This method often results in an unequal distribution where those in positions of power or authority may receive a disproportionate share compared to those who do not have the same level of influence. Distribution by force can create resentment and conflict among the recipients, and may not be sustainable in the long term. This approach is often seen in authoritarian or dictatorial regimes where the ruling elite use force to control and distribute resources, while the majority of the population is left with limited access to resources.
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A used-car cost 5000. You figure you can get 4 years out of it. You drive 10000 miles per year. Your car insurance costs 1200$ per year. You figure you’ll spend 400$ per year on maintenance. Gas cost 3$ per gallon and the car gets 25 miles per gallon. What will be your average cost (all cost included) per mile over 4 years ?
Answers
Answer:
$0.405
Explanation:
The average cost per mile:
Cost per year:
Insurance : $1200
Gas At $3 per gallon: car performance is 25 miles per gallon. In one year, the car is driven for 10,000 miles.
Consumption per year = 10,000/25 x 3= $1200
maintenance $400
Cost for fours years
Car cost: =$5000
Insurance : $1,200 x 4 =$4,800
Gas costs: $1200 x 4 =$4800
Maintenance :$400 x 4 = $1600
Total costs for four years= $5000+ $4800+ $4800+$1600
=$16,200
Average cost per mile
=$16,200/ 40,000
=
The average cost per :
Cost per year:
Insurance : $1200
Gas At $3 per gallon: car performance is 25 miles per gallon. In one year, the car is driven for 10,000 miles.
Consumption per year = 10,000/25 x 3= $1200
maintenance $400
Cost for fours years
Car cost: =$5000
Insurance : $1,200 x 4 =$4,800
Gas costs: $1200 x 4 =$4800
Maintenance :$400 x 4 = $1600
Total costs for four years= $5000+ $4800+ $4800+$1600
=$16,200
Average cost per mile
=$16,200/ 40,000
=$0.405
what is it called when you let someone walk all over you?
Answers
Answer:
mistreat or bully
Explanation:
Ig
True or false: Obtaining top management's leadership and commitment is not necessarily critical for diversity programs to succeed.
Answers
Answer:false
Explanation:
QuestionWhen both demand and supply curve shift leftward, _____.This question has multiple correct optionsAequilibrium quantity decreases Bequilibrium price may increase, decrease or remain unchangedCequilibrium quantity may increase, decrease or remain unchangedDequilibrium price decreasesHard
Answers
As both the supply and demand curves move to the left, the equilibrium quantity declines, but the equilibrium price may move in either direction depending on how much the two curves shift.
Both the price and the quantity will fluctuate when supply and demand both vary. When supply and demand are flowing in the same direction, price is unpredictable. This is due to the fact that higher prices will result from increased demand, whilst lower prices will follow from the rising supply. The price axis travels in both directions, thus the overall impact depends on whether the change is more pronounced. An increase in the quantity is inevitable because both movements cause the equilibrium quantity to rise. According to this, quantity is uncertain when supply and demand shift in opposing directions because one shift will provide an increase while the other will produce a decrease.
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Match the action needed to increase profits with the reason a business might fail.
Setting a realistic budget for the company to follow would match with________.
A) bad location
B) poor management
C) Competition
D) finances
Answers
Thats how they make money without over pricing items
Answer:
D
Explanation:
finances
Why would a producer conduct a marginal analysis?
A. To understand the type of taxes paid on a good or service
B. To determine whether a price increase will change what a
consumer will buy
C. To predict the amount of environmental pollution caused by a
manufacturer
D. To suggest a way to package a product so that it causes less
pollution
E
Answers
Answer:
B to determine whether a price increase
Explanation:
cuz I said
summary on business essay for grade 9
Answers
The analysis of the business essay should contain:
The brief description of the company.Company conditions.SWOT analysis of the company.The financial status of the company.The future of the company.Conclusion.How to illustrate the information?It should be noted that a company analysis is important to analyze a company so that the organizational goals will be achieved.
In this case, the begining of the essay is to introduce the company. This should illustrate the mission and the objective of the company.
Other important information include the company conditions, SWOT analysis of the company, the financial status of the company, and the future of the company.
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Firms keep supplies of inventory for which of the following reasons? To provide a feeling of security for the workforce To meet variation in product demand To maintain dependence of operations To hedge against wage increases
Answers
Firms keep supplies of inventory primarily for two reasons, which are to meet variation in product demand and to maintain dependence of operations. Meeting variation in product demand refers to the fact that consumer demand can be unpredictable, and firms need to have sufficient inventory on hand to meet unexpected surges in demand.
Maintaining dependence of operations refers to the fact that firms need a steady supply of raw materials and other inputs to keep their production processes running smoothly. By keeping an inventory of these inputs on hand, firms can ensure that they are always able to meet their production needs, even if there are disruptions in their supply chain. Firms generally do not keep supplies of inventory to provide a feeling of security for the workforce or to hedge against wage increases, as these are not directly related to the production process.
Firms keep supplies of inventory primarily to meet variation in product demand and to maintain the smooth functioning of their operations. Maintaining an adequate inventory level ensures that a company can quickly fulfill customer orders, leading to improved customer satisfaction and loyalty. This also helps avoid stockouts, which can negatively impact the company's reputation and revenue.
Additionally, a sufficient inventory allows firms to maintain the efficiency of their operations. This ensures that production can continue without interruptions, even if there are fluctuations in the supply chain, such as delays in receiving raw materials or components. By maintaining an appropriate inventory level, firms can effectively manage their production schedules and resources, ultimately leading to cost savings and increased profitability.
While keeping an inventory may not directly provide a feeling of security for the workforce or hedge against wage increases, it indirectly contributes to a stable working environment by facilitating seamless production processes and promoting customer satisfaction, both of which are essential for a company's long-term success.
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UniFront Corp., a telecommunications company, has launched a new limited edition smartphone called zNINE that has advanced technology features and is built using high-grade material. The company has made only 99 of these zNINE cellphones and customers are ready to pay more than what the cellphone is worth because it is so limited in number. This scenario can be best categorized as an example of __________.
Answers
Answer: C. rarity
Explanation:
According to the laws of Supply and Demand, when the supply of a good is low relative to its demand, the price will be higher to reflect its relative scarcity or rarity. This ensures that only a few are able to buy the few goods on offer.
This is the case here with UniFront's phone. Due to the rarity of the phone, people will pay more than the phone is worth so that they can acquire it. In other words, the limited number of phones produced relative to the demand is low therefore the price is higher.
Discuss reasons why a business might choose to sell direct to customers through a website with e-commerce facilities, as opposed to through fixed (physical ‘bricks and mortar') premises.
Answers
Answer:
Businesses might prefer selling direct to customers through a website with e-commerce facilities because:
1. For covering a wider distance, distance is not a barrier.
2. For flexibility for customers, as some e-commerce even accepts cryptocurrency payments.
3. For product and price comparison.
4. For saving cost incurred from having fixed (physical ‘bricks and mortar') premises.
5. For saving the cost of paying workers.
6. For maintaining social distancing protocol given by the government especially during the pandemic. This doesn't put anyone at risk.
Explanation:
The question above asks for justifications why a business might choose to sell direct to customers through a website with e-commerce facilities rather than selling to customers through fixed (physical ‘bricks and mortar') premises.
First, selling to customers through a website with e-commerce facilities involve virtual transactions with customers paying for goods and services they are interested in over the internet. With this, customers can pay with their bank cards through e-commerce websites. While selling through fixed (physical ‘bricks and mortar') premises involve direct contact in-person with the customer and possibly payment is made in cash or through any other accepted methods.
Who owns the TD bank? Is it the government?
Answers
1. Clark is the kind of manager that values input from his team and likes to involve them in the decision-making process. He prefers to avoid micromanagement and works hard to make
sure that his employees are well taken care of and empowered to make decisions. Based on this, what kind of manager is Clark?
reductive manager
exploitative manager
о
confrontational manager
democratic manager
Answers
Answer:
democratic manager
Explanation:
A democratic manager invites participation from members in the decision-making process. In this leadership style, every member is encouraged to contribute their ideas and opinions. Members' involvement leads to increased feelings of recognition and satisfaction.
Democratic leadership is also referred to as participative leadership. It contrasts with autocratic leadership, where the leader makes all the decisions without consultation.
Creating graphs to reach equilibrium
Answers
On a graph, the point the place the grant curve (S) and the demand curve (D) intersect is the equilibrium.
How do you draw a demand and supply curve at equilibrium?Put the quantity of the top you are requested to analyze on the horizontal axis and its charge on the vertical axis. Draw a downward-sloping line for demand and an upward-sloping line for supply. The preliminary equilibrium charge is determined with the aid of the intersection of the two curves. Label the equilibrium solution.
The equilibrium curve of a given shape represents, to some extent, its behavior. This curve is developed in an (n + 1) dimensional house if the device is of finite dimensions; otherwise, for continuum structures (such as beams, plates, shells, and deformable our bodies in general), the corresponding area is infinite.
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https://brainly.com/question/14297698#SPJ9Marc and Julian are considering the following investments for their portfolio. Help them evaluate each one by weighing the risks versus return. Rank each as low, moderate, or high in each category.
Answers
In the given investments for Marc's and Julian's portfolio the risk-return tradeoff The assertions made will follow the risk to returns principle that says the greater the risk the greater the returns. In the categories let,
L= low
M= moderate
H= high in each category.
Therefore, appropriate ranking will show
More about evaluating risk and return:
The risk-return tradeoff, often known as the relationship between risk and prospective return on investment, is one of the tenets of investing. Investors are aware that, for the majority of stocks, bonds, and mutual funds, taking on more risk or volatility increases the possibility of better returns. Investors look at an investment's alpha, beta, standard deviation, and Sharpe ratio to calculate the risk-return tradeoff.
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write any four method any two challenges of federal system?
Answers
\(\huge\bold\red{Answer:-}\)
✭The purpose of this collection is to discuss what we may learn from thinking about the EU in federal terms.
✭Our point of departure is that this represents a two-fold challenge.
✭It is on the one hand a matter of establishing ‘how federal’ the EU is (the EU’s federal challenge).
✭On the other, the EU has federal features but is not a state; thus raises the question of whether federal theory and practice may have to be adapted to take proper account of the EU (the EU’s challenge to federalism).
✭The contributions to this collection supplement and extend existing scholarship through focusing on two important lines of inquiry.
✮The first focuses on the relationship between federalism and democracy, with particular emphasis on how federal systems respond to and deal with citizens’ interests and concerns, within and outside the political system.
✮ Particular emphasis is placed on representation, in the process of federalization, and as a feature of established systems.
✮The second line of inquiry places the emphasis on the relationship among the governments of federal systems.
✭The focus is on intergovernmental relations, and the particular merits that emanate from studying these from a federal perspective.
HOPE IT HELPS❤Answer:
Constitutional provisions are used by political parties to hide the real issues of corruption, fraud etc.Central government and State Governments’ indifference and apathy towards constitutional scheme of federal structure.Tussles between the agencies of central government and those of state governments stress the cohesive functioning of centre and states.Claudine Corporation will deposit $3,500 into a money market account at the end of each year for the next three years. How much will accumulate by the end of the third and final payment if the account earns 11% interest
Answers
To calculate the total amount that will accumulate by the end of the third and final payment, we can use the formula for the future value of an ordinary annuity:
Future Value = Payment × [(1 + Interest Rate)^Number of Periods - 1] / Interest Rate
In this case:
Payment = $3,500
Interest Rate = 11% = 0.11
Number of Periods = 3 (since there are three annual payments)
Plugging these values into the formula, we have:
Future Value = $3,500 × [(1 + 0.11)^3 - 1] / 0.11
Calculating this expression:
Future Value = $3,500 × [(1.11)^3 - 1] / 0.11
Future Value = $3,500 × (1.36 - 1) / 0.11
Future Value = $3,500 × 0.36 / 0.11
Future Value ≈ $11,636.36
Therefore, approximately $11,636.36 will accumulate by the end of the third and final payment.
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