You intend to purchase a 10 year ,10000 face value bond that pays interest of 800 every six months.If your norminal annual required rate of return is 10 percent with semi-annually compounding ,how much should you be willing to pay for this bond ? What's the current yield

Answers

Answer 1

Answer:

Market price = $13,738.49

Explanation:

The yield to maturity of the bond is 8% x 2 = 16%

You require a 10% return, so the present value of the bond should be:

PV of face value = $10,000 / (1 + 5%)²⁰ = $3,768.89

PV of coupon payments = $800 x 12.462 (PVIFA, 5%, 20 periods) = $9,969.60

Market price = $13,738.49


Related Questions

The elements of a company's business model are Group of answer choices its deliberate strategy, its emergent strategy, and its realized strategy. its business strategy, its collection of competitively valuable resources, and a strong management team. its actions to capture emerging market opportunities and defend against threats to the company's business prospects, its actions to strengthen competitiveness via strategic alliances, and its actions to enter new geographic or product markets. management's answers to the questions: Where are we now

Answers

Answer:

The question is incomplete, there is one option that remains missing. The option missing is:

Its customer value proposition as well as the company's profit formula.

And that is correct answer.

Explanation:

To begin with, the term known as "business model" refers to the specific course of action that a group of people have established to be the way that they will use in order to make a business and obtain a profit from it. Therefore that the most important elements of these model tend to be the customer value proposition as well as the company's profit formula given the business stated. Moreover, the business model is characterized as well for identifying the company's target audience and the product or service that they are planning to sell.  

What is the nine business blocks

Answers

Answer:

The nine business blocks are; customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.

Explanation:

These business blocks are part of a business model, which is something that many new entrepreneurs use as part of a design detailing how a business can function and operate successfully, especially when depending on the environment their businesses are set in. Within business models, there are four central parts that relate to; customers, offering, infrastructure, and financial viability. With that comes nine key blocks that describe it, and those nine building blocks (which are stated in the answer section above) all relate to the four central parts of the business model.

Sources:

https://opentextbc.ca/organizationalbehavioropenstax/chapter/business-model-canvas/https://medium.com/the-second-act/the-9-building-blocks-of-your-business-model-e9cdfe996ff5

Pro-Racquets has a bill of lading for an order of 10,000 tennis rackets it will be exporting to a foreign distributor. The company takes this bill of lading to the local bank and uses it to obtain funds to hold the company over until final payment is received from the foreign distributor. In this situation, the bill of lading is being used as _______.

Answers

Answer:

A security

Explanation:

A security is defined as an item that holds financial value and represents ownership of a property by the holder. It is used as a means of gaining some financial assistance.

The security acts something a creditor can use to get back their money in case the debtor fails to pay up.

In this case Pro-Racket takes the bill of lading to the local bank and uses it to obtain funds to hold the company over until final payment is received from the foreign distributor.

The Bill of lading here has been used as a security to obtain a loan from the bank

TRUE OR FALSE
A laissez-faire style leader will communicate goals to employees but then allow them to choose how to complete them

Answers

Answer:

The Answer is gonna be False

This is the right Answer :3

I hope you are having a great day ❤️❤️❤️❤️❤️❤️

HOW DO YOU GIVE BRAINLIESTS

Answers

Answer:

huh?

Explanation:

Answer:

If two person had given your answer then there is a option of mark as brainliest. Click there in the option of mark as brainliest in which you like the answer most. If any one person has given answer then after some days you will a notification to mark his/her answer as brainliest. By this you can mark an answer as brainliest.

Explanation:

The following information pertains to Sunland Company. Assume that all balance sheet amounts represent average balance figures. Total assets $261000 Stockholders' equity-common 130500 Total stockholders' equity 185500 Sales revenue 95500 Net income 29500 Number of shares of common stock 6100 Common dividends 5100 Preferred dividends 7600 What is the return on common stockholders' equity ratio for Sunland

Answers

Answer:

the Return On COmmon Stockholders Equity is 16.78%

Explanation:

The computation of the return on the common stockholder equity ratio is shown below;

Return On Common Stockholders Equity is

= (Net Income - Preferred Dividend ) ÷ Average Common Stockholders Equity

=  ($29,500 - $7,600 ) ÷  130,500

= 16.78%

Hence, the Return On COmmon Stockholders Equity is 16.78%

Fill in the blanks with the word from the drop-down list that best completes each passage. A marketing channel, also called a " Select channel," is one critical component of a distribution strategy. Marketing channels provide the means by which goods and services flow from the Select to the consumer or business user. Most marketing channels involve at least one Select or middleman, but the simplest marketing channel is a direct channel. Reverse channels involve the return of goods to their producers, for example, by Select or recall.

Answers

Answer: See explanation

Explanation:

A marketing channel, also called a (distribution) channel," is one critical component of a distribution strategy.

Marketing channels provide the means by which goods and services flow from the (distributor) to the consumer or business user.

Most marketing channels involve at least one (intermediary) or middleman, but the simplest marketing channel is a direct channel.

Teverse channels involve the return of goods to their producers, for example, by (recycling) or recall.

The marketing channel is a vital aspect in the distribution strategy as it helps in the distribution of goods from the producer till it gets to the consumers.

From the perspective of the ____, the price at which a unit is exchange is the marginal cost of that unit

Answers

Answer:

From the perspective of the SELLER, the price at which a unit is exchange is the marginal cost of that unit

Unless an exemption applies, under the Investment Advisers Act of 1940, an investment adviser is required to A) furnish a statement of the total dollar amounts of securities bought and sold each year to customers B) maintain a bond for an amount based on the assets under management C) furnish an audited balance sheet each year to customers for whom the advisor maintains custody D) provide each advisory client with a brochure or a summary of material changes within 120 days of the end of its fiscal year

Answers

Answer:

for example in a small timr of a gift shop in a large bowl with the story and the app store and all of them in a new location for the next i would have a little bit more float in my house and the other half the time it is th good for me a lot and all of my dear friend and all the others I am not playing in my own words and all the other ones are you and all the others who have a problem

Scholarships, grants and work-study money all reduce the _____ of higher education.
A. Retail price
B . sticker price
C. net cost
D. sticker shock

Answers

There are different kinds of grants. Scholarships, grants and work-study money all reduce the net cost of higher education.

Net price in this aspect is known to be the college's annual cost of attendance not including grants, scholarships, tuition waivers etc., that student receives for one year of college.

It is known as the forms of financial aid that a student does not have to repay or earn through work. If a student do get or wins a private scholarship, it helps to reduce the net price.

Learn more about  Net cost of higher education from

https://brainly.com/question/25269888

How important is financial planning for your future?

Answers

Explanation:

Financial planning is a step-by-step approach to meet one's life goals. A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.

This graph shows the marginal cost of producing each additional pair of running shoe inserts.
Based on the graph, which pair of shoes has a marginal cost of $3.00?
Pair 2
Pair 4
Pair 6
Pair 7

Answers

Answer:C

Explanation:

Answer:

Pair 6 or Answer: C

Explanation:

Which person would most likely have a good credit report?
O A. Mark has been in the same job for eight years and the same house
for 10 years, and he always pays his bills on time.
B. Coree has applied for several credit cards, and she recently lost
her job.
O C. Andrew always pays his bills on time, and he has monthly credit
payments of 20% of his take-home pay.
O D. Ashley has never had a credit card
SUB

Answers

Answer:

The answer is A

Mark who is always paying his bills on time

1.What is a story?
2.What are the elements of a story ?​

Answers

Answer:

an account of imaginary or real people and events told for entertainment.

The parts of a story consist of five main elements: characters, setting, plot, and conflict along with theme.

hope this helps

have a good day :)

Explanation:

A story is an account of imaginary or real people told for entertainment.

elements of a story are characters, setting, plot, theme and conflict.

18. Would you expect, in some cases, to see only an income effect or only a substitution effect? Explain.19. Which is larger, the income effect or the substitution effect​

Answers

The income effect because you’ll gain more money personally and the substitution effect is about everybody in the building getting a “fair share”.

Refer to exhibit 24-7. the maximum profits earned by a single-price monopolist producing good x are

Answers

Answer:

$4,500

Explanation:

hope i helped :)

All of the following are considered examples of disreputable conduct for which a CPA can be disbarred or suspended except Directly or indirectly attempting to influence the official action of any employee of the Internal Revenue Service by use of threats or false accusations or by bestowing any gift, favor, or thing of value. Knowingly aiding and abetting another person to practice before the Internal Revenue Service during a period of suspension or disbarment. Misappropriation or failure to remit funds received from a client for the purpose of payment of taxes or other obligations due the United States. Failure to timely pay personal income taxes.

Answers

Answer:

Failure to timely pay personal income taxes.

Explanation:

Rules of Conduct

This is simply said to be a full stated guidance to aim to help an auditor in applying broad principles contained in AICPA's Code of Professional Conduct

These Disreputable conduct if commited by an attorney, certified public accountant, or enrolled practitioner, it can therefore lead to them being disbarred or suspended from practice before the Bureau.

Rules sometimes do changes over time due to the fact that members of profession encountered specific ethical dilemmas in complying with the principles of the code

There are 6 Principles of the AICPA Code of Professional Conduct. They cover:

1. Responsibilities

2. The Public Interest

3. Integrity

4. Objectivity

5. Due Care

6. Scope and Nature of Services

The disreputable conduct for which a CPA can be disbarred or suspended includes the following;

1. When they Directly or indirectly attempting to influence the official action of any employee of the Internal Revenue Service by use of threats or false accusations or by bestowing any gift, favor, or thing of value.

2. Knowingly aiding and abetting another person to practice before the Internal Revenue Service during a period of suspension or disbarment.

Which options are SmartArt categories? Check all that apply.

Bubble Map
Fishbone
Hierarchy
Matrix
Picture
Pyramid

Answers

Answer:

3 4 5 and 6

Explanation: edge

Summarize what is a mutual fund!

Answers

Answer:

investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own

Explanation:

Sarah buys 500 shares of stock at $18 and sells the holding for a capital gain of $3,000. What was the share price at the time of the sale?

Answers

Answer:

$24

Explanation:

500 * 18 = $9000 worth of stock initially.

She sells with a $3000 gain, which means the value of the stock is $12000

12000/500 = $24

If I wanted to buy one of 2 items, a bike or a new TV, and after
consideration of my need to get exercise and fresh air, I chose to buy
the bike. Then, my opportunity cost would be the TV.
True
O False

Answers

Great question! I believe this is true because using a bike is also efficient to get to work which will get you more money to buy said tv. So I think this may be true

The Hendersons have just bought a home that requires some monthly yard maintenance. They are trying to decide if they should hire a professional lawn care service to maintain the property or do it themselves. Below are the costs associated with both options: Professional Service Option Do-It-Yourself Option $75 for the first month $250 lawnmower $45 per month after initial visit $135 edger Includes mowing and edging the lawn, trimming the bushes, and raking the leaves. $69 hedge trimmer $25 rake How long would it take before the Hendersons would recover their costs if they chose to do it themselves over the professional service

Answers

Answer: 10 months

Explanation:

It would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.

Here is how;

Doing it themselves would cost -

$250 - For a lawnmower

$135 - For an edger

$69 - For a hedge trimmer

$25 - For a rake

Summing these up gives $479

It would cost the Hendersons $479 to purchase equipments to carry out their monthly yard maintenance themselves.

On the other hand, if they were to hire a professional service, it would cost

• $75 for the first month and

• $45 for subsequent months

So, $45 * 9months = $405

$405 + $75 (for the initial month) = $480

Comparing the $480 for a professional to the $479 it would cost to purchase equipment and do it themselves, it would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.

If the Hendersons chose to go Do-It-Yourself Option over the Professional Service Option, it would take them 10 months to recover their investment in the purchase of Lawnmower and Rake.

Data and Calculations:

Costs of Maintenance Options:

                                         Professional      Do-It-Yourself

                                      Service Option           Option

First month                                $75                   $250

Monthly Fee after first month     45

Edger                                                                     135

Hedge Trimmer                                                     69

Rake                                                                       25

Total Do-It-Yourself Costs                               $479

First month payment for professional service (75)

Total costs less Professional Service (first)  $404

The number of months to recover costs = 10 months ($404/$45) + 1)

Thus, if the Hendersons chose to go Do-It-Yourself Option over the Professional Service Option, it would take them 10 months to recover their investment in the purchase of Lawnmower and Rake.

Learn more about Do-It-Yourself v. Professional Service options here: https://brainly.com/question/13171394

If your company is expected to pay 100 million to a company in Japan by 9/30/21 list 2 ways that my company can hedge the transaction

Answers

Answer:

The company can opt for futures contracts.

The company can go for matching of receipts.

Explanation:

There are various techniques for transferring foreign exchange risk. Many organizations go for hedging techniques to minimize the risk exposure with the fluctuation in the foreign currency. When a company is expecting payments in six months, it can go for futures contract or matching the payment with the equal amount receipts.

Summarize what is a stock?

Answers

A stock is a share in the ownership of a company. A bond is an agreement to lend money to a company for a certain amount of time. Companies sell securities to people to get the money they need to grow. People buy securities as investments, or ways of possibly earning money. Overtime, if you make super good investments and a good couple years you could be making thousands!

Customs officials sell imported products in government-owned stores.

-True

-False

Answers

the answer is true.

hope this helped :)

This is for business management, can anyone help me?

Answers

I might be so wrong but I think it is B

hope it was right have a awesome day :)

An externality is an unwarranted cost or benefit that affects...

O the producer only
O the consumer only
O a third party
O both the producer and consumer​

Answers

Answer:

a third party

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

In Economics, an externality could either be positive or negative depending on its effect on a third party.

A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

On the other hand, a negative externality arises when the production or consumption of a finished product or service has a negative effect and/or impact (cost) on a third party.

This ultimately implies that, an externality is typically an unwarranted cost or benefit by a manufacturer or producer of goods and services that affects a third party.

Quick! Suppose a local pizza place is hiring, with a big sign in the window saying HELP WANTED. You walk in, interested in the job. What would you say to convince them to hire you?

Answers

Say your good points in jobs, why you are interested in the job things like that...

A firm's demand for labor is known as a derived demand because the firm gains utility from hiring more labor the firm gains utility from hiring more labor A the wage rate paid to workers depends on the demand for labor the wage rate paid to workers depends on the demand for labor B the amount of labor demanded depends on the amount of capital invested the amount of labor demanded depends on the amount of capital invested C the amount of labor demanded depends on the demand for the firm's product the amount of labor demanded depends on the demand for the firm's product D the firm will benefit from hiring additional labor

Answers

Answer:

The correct answer is the option C: The amount of labor demanded depends on the demand for the firm's product.

Explanation:

To begin with, in the microeconomics theory we can find the answer to the question base upon the fact that the "derived demand" of labor is known like that because it will always depend on the amount of output that the company sells. Therefore that the amount of labor hired is derived from the amount of product sold. Understanding that if the company sells more of its product then it will hire more workers in order to increase the offer, according to basic supply laws. And that is why that obviously the demand ends up being dependent from the demand of the product itself.

Does it matter how often banks charge interest?

Answers

Answer:Basically no

Interest is charged on a monthly basis in the form of a finance charge on your bill. If you have a revolving balance, you will lose that 21-day interest-free grace period on purchases.

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