Consider a 10 year 7% annual coupon bond with Face Value = $ 1000 and required rate of return of 11%. Which of the following is the closest ak approximation to the value of the bond? A $356.49 eu B $358.07 $764.43 9 D $805.15 1000
Answers
Using a financial calculator or excel sheet we can calculate the present value of the bond is $764.43
Given data:
Annual coupon rate = 7%
Face value = $1000
Maturity period = 10 years
Required rate of return = 11%
We need to calculate the price of the bond using the given data.
We will use the below formula to calculate the price of the bond.
P = C1/(1+r)1 + C2/(1+r)2 + ………….. + Cn/(1+r)n + FV/(1+r)n
Where,
P = Price of the bondC1, C2, ……, Cn = coupon payments
FV = face value of the bond
n = number of years
r = required rate of return
The coupon payment will be,$1000 * 7% = $70The first coupon payment will be received after one year and it will be $70.The second coupon payment will also be $70 but it will be received after two years.
The tenth coupon payment will also be $70 and it will be received after ten years.
The face value of the bond is $1000.
The required rate of return is 11%.
Now, we will substitute these values in the formula mentioned above.
P = 70/(1.11)^1 + 70/(1.11)^2 +……. + 70/(1.11)^10 + 1000/(1.11)^10
Hence, the closest approximation to the value of the bond is $764.43.
Option B is the correct answer.
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Related Questions
Mary Parker Follett felt that managers should act as ______ rather than dictators.
Answers
Facilitators
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What is a stock exchange?
A. A place where investors can buy and sell different
investments.
B. A type of bank that buys and sells different types of
investments.
C. An organization that owns shares of stock.
D. None of the above
Answers
Answer:
A. A place where investors can buy and sell different investments.
Explanation:
A stock exchange is a place for the exchange of stocks in the market. In other words, it is a place where investors could 'meet' to buy or sell stocks, be it investments, company shares, or company securities.
A stock market, in simple words, is the marketplace for the buying and selling of investments, a trading place for buyers and sellers. So, a stock exchange is a transaction dealing with stocks, equities, or shares of the commercial world. And the transaction or exchange can only be done if the stock is listed on an exchange.
Thus, the correct answer is option A.
Answer:
A. A place where investors can buy and sell different investments.
Explanation:
The concept behind how the stock market works is pretty simple. Operating much like an auction house, the stock market enables buyers and sellers to negotiate prices and make trades. ... Investors can then buy and sell these stocks among themselves, and the exchange tracks the supply and demand of each listed stock.
A study has found, among 100 students at a school, that enrollment in drama classes is correlated with high rates of participation in social-
service projects. What can we conclude from this correlation for this population?
O Both of the above
O Neither of the above.
O Drama classes cause increased volunteerism
Volunteering causes interest in drama,
Answers
Explanation:
Correlation does not lead to causation, no matter how strong the correlation may be. You'll need to do an experiment to see if one variable causes the other. There may be other factors that aren't being considered here. We consider these confounding variables.
An example of correlation doesn't lead to causation could be this: In the summertime, ice cream sales increase and the amount of sunburns increase. Both ice cream sales and sunburns are strongly positively correlated. Does eating ice cream cause a sunburn? The answer is "no" because clearly the sun is responsible for that. So the sun would be the confounding variable here. Specifically, the amount of sunlight exposure would be key here.
in working with downstream processes, internal operations managers typically work closely with:
Answers
Internal operations managers typically work closely with downstream customers, suppliers, and other functional areas within the organization.
Internal operations managers play a crucial role in coordinating and optimizing the flow of goods and services within an organization. To ensure smooth operations and meet customer demands, they collaborate closely with downstream customers to understand their requirements and expectations.
Additionally, operations managers work closely with suppliers to manage the supply chain effectively, ensuring timely delivery of inputs. They also collaborate with other functional areas, such as marketing and sales, to align production and distribution processes with market demands. By fostering strong relationships with downstream customers, suppliers, and cross-functional teams, internal operations managers can enhance operational efficiency and customer satisfaction.
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--The complete question is, In working with downstream processes, internal operations managers typically work closely with whom?--
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
5. A clothing manufacturer anticipates that the market for a certain popular T-shirt will continue to be strong for a few years. The manufacturer, accordingly, is considering the purchase of equipment that would generate $100,000 in cash flow starting in 1 year and continuing for the next two consecutive years (for a total of three years). The machine itself costs $250,000 immediately, and initial expenses also include a one-time fee of $710 for a maintenance contract and $7,000 for setup and labor. What is the project's IRR?
Answers
The project's IRR is the discount rate that would make the net present value (NPV) of the project's cash flows equal to zero. To calculate the NPV, we need to first determine the cash flows.
The equipment generates $100,000 in cash flow for three years, so the total cash flow is $300,000 ($100,000 per year x 3 years). The initial expenses are $250,710 ($250,000 for the machine + $710 for the maintenance contract), plus $7,000 for setup and labor, for a total initial cost of $257,710.
To calculate the NPV, we need to discount the cash flows back to the present using a discount rate.
Let's assume a discount rate of 10%.
Year 0: -$257,710 (initial cost)
Year 1: $90,909 ($100,000 / 1.1)
Year 2: $82,644 ($100,000 / 1.1^2)
Year 3: $75,131 ($100,000 / 1.1^3)
Total NPV: $-8,026
The NPV is negative, which means the project would not be profitable at a discount rate of 10%. We can use the IRR function in Excel (or a financial calculator) to find the discount rate that would make the NPV equal to zero.
Using Excel's IRR function, we get an IRR of 12.1%. Therefore, the project's IRR is 12.1%.
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Firms do not usually get rewarded by diversifying investments in different lines of business because ________.
Answers
Investors can diversify themselves by holding securities in a variety of companies they do not need the firm to do it for them.
As a result, firms are typically not rewarded for diversifying their investments across different business sectors.
By spreading investments throughout different asset classes, industries, and other categories, diversification is a technique for lowering risk. By making investments in various sectors that would each respond to the same event differently, it seeks to minimize losses.
Diversification is the most crucial element of achieving long-term financial goals while minimizing risk, according to the majority investors and professionals, despite the fact that it cannot guarantee against loss.
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The president of the Northwoods University student body made a formal request to the IT department for additional computers in the main computer lab. The student body president is the ________ in the buying center.
A. initiator
B. gatekeeper
C. decider
D. buyer
E. gateway
Answers
Because of the formal request made, the President of the University is the:
A. initiatorWho is an Initiator?This refers to a person who makes the first offer for a thing or starts off negotiations or requests.
With this in mind and from the given question, we can see that because the president of the University made the formal request for additional computers, then he is the initiator.
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John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather to be able to withdraw $160 per month for the next 3 years. How much must John invest today at 6% per year compounded monthly so that his grandfather can withdraw $160 per month for the next 3 years? a) $5,259.36 b) $5,269.36 c) $5,289.36 d) $5,219.36 e) $5,239.36
Answers
The correct answer is (a) $5,259.36.
To calculate the amount John needs to invest today, we can use the future value of an ordinary annuity formula:
Future Value = Payment Amount * [(1 + Monthly Interest Rate)^Number of Payments - 1] / Monthly Interest Rate
Given that John's grandfather wants to withdraw $160 per month for the next 3 years, we can plug in the values into the formula:
Future Value = $160 * [(1 + 0.06/12)^(3*12) - 1] / (0.06/12)
Calculating the expression, we find:
Future Value = $160 * [(1.005)^36 - 1] / 0.005
Future Value = $160 * (1.21551 - 1) / 0.005
Future Value = $160 * 0.21551 / 0.005
Future Value = $34,481
Therefore, John needs to invest $5,259.36 today at a 6% annual interest rate compounded monthly in order for his grandfather to be able to withdraw $160 per month for the next 3 years.
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A compound is 80.0% carbon and 20.0% hydrogen by mass. Assume you have a 100.-g sample of this compound. Part A How many grams of each element are in this sample?
Answers
In the given 100 g sample of the compound, there are 80.0 grams of carbon and 20.0 grams of hydrogen. Following is the calculation:
To determine the mass of each element in the compound, we can calculate the mass based on the given percentages.
Given:
Mass of the sample = 100 g
Percentage of carbon = 80.0%
Percentage of hydrogen = 20.0%
Part A: Calculate the grams of each element in the sample.
Mass of carbon = (Percentage of carbon / 100) * Mass of the sample
= (80.0 / 100) * 100 g
= 80.0 g
Mass of hydrogen = (Percentage of hydrogen / 100) * Mass of the sample
= (20.0 / 100) * 100 g
= 20.0 g
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____ should address the organization's self-concept, its philosophy, long-term survival needs, customer needs, social responsibility, and the nature of the product or service.
Answers
The organization's strategic plan should address the organization's self-concept, its philosophy, long-term survival needs, customer needs, social responsibility, and the nature of the product or service.
The organization's mission statement should address its self-concept, philosophy, long-term survival needs, customer needs, social responsibility, and the nature of the product or service. A mission statement is a concise declaration of an organization's purpose and serves as a guiding principle for its actions and decision-making. It reflects the organization's identity, values, and aspirations. The self-concept refers to how the organization perceives itself and its unique qualities or strengths.
The philosophy outlines the organization's beliefs and principles that guide its operations. Long-term survival needs encompass the organization's strategies for sustained growth and competitiveness. Addressing customer needs ensures a focus on delivering value and meeting customer expectations. Social responsibility emphasizes the organization's commitment to ethical conduct and contributing positively to society. Finally, acknowledging the nature of the product or service highlights the core offering and its intended impact. A comprehensive mission statement encompasses these essential elements, providing a clear direction and purpose for the organization.
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could someone explain to me what the money market in Italy is, thank you all
Answers
Explanation:
Two main markets comprise the Borsa Italiana: the Mercato Telematico Azionario (MTA), which is the segment for mid- and large-size companies; and the AIM Italia, which was established in 2009 to cater for high growth small and medium enterprises needing more flexibility around the reporting and governance requirements.
Look for _____ in research information showing preferential treatment or consideration regardless of legitimate reasoning.
credibility
relevance
bias
additional sources
Answers
Answer:
bias
Explanation:
bias is the true anwer
Suppose that Roots' marginal cost of a jacket is a constant $100.00 and the total fixed cost at one of its stores is $1 comma 000 a day. This store sells 15 jackets a day, which is its profit-maximizing number of jackets. Then the stores nearby start to advertise their jackets. The Roots store now spends $2 comma 000 a day advertising its jackets, and its profit-maximizing number of jackets sold jumps to 55 a day. What is this store's average total cost of a jacket sold before the advertising begins and after the advertising begins. >>> Answer to 2 decimal places. Can you say what happens to the price of a Roots jacket, Roots' markup, and Roots' economy?
Answers
Answer:
What is this store's average total cost of a jacket sold before the advertising begins and after the advertising begins.
before advertising costs increase:
marginal cost is constant, so we can state that the total variable costs are $100 per jacket
total fixed costs = $1,000 per day / 15 jackets = $66.67 per jacket
average total cost per jacket before increasing advertising expense = $100 + $66.67 =) $166.67
after advertising costs increase:
total variable costs are $100 per jacket
total fixed costs = $2,000 per day / 55 jackets = $36.36 per jacket
average total cost per jacket after increasing advertising expense = $100 + $36.36 =) $136.36
Can you say what happens to the price of a Roots jacket, Roots' markup, and Roots' economy?
Roots is experiencing economies of scale since average total cost per jacket decreased as the total number of jackets sold increased. But in order to sell that new amount of jackets, their price probably decreased. If the price hadn't changed, then the profit maximizing number of jackets sold per day would be close to 30, but it clearly isn't. That means that the company's markup decreased, but the company is now better off since it is maximizing its profits even though its expenses increased and the markup decreased.
Sid Brutality is the lead guitarist and singer for a popular and successful rock group known as Bad Aftertaste. Bad Aftertaste practices twice a month at Sid’s home. Sid’s neighbor, Kate, is trying to sell her home. Does Kate need to provide written disclosure that Bad Aftertaste practices nearby?
Answers
Considering the situation described above, Yes, Kate needs to provide written disclosure that Bad Aftertaste practices nearby.
What is Written Disclosure?A Written Disclosure is a written agreement that is made to state the nature of the condition of items that forms the major part of the contract.
Given that Bad Aftertaste practices are nearby and the noise or sound of the band may affect the new neighbor or occupant of the building, it is expected that the potential buyer is aware of the nature of the building.
Written disclosure should be made and delivered to the buyer before acceptance is made. it must be dated and signed.
Hence, in this case, it is concluded that the correct answer is Yes; Kate needs to provide written disclosure that Bad Aftertaste practices nearby.
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Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,388. The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,391.77. What is the total amount of taxes withheld from the Portia's earnings
Answers
Answer: $2,033.46
Explanation:
Social security taxes = 8,388 * 6.2% = $520.06
Medicare taxes = 8,388 * 1.45% = $121.63
Federal income tax withheld = $1,391.77
FUTA and SUTA are to be paid by the employer not the employee.
The total amount of taxes withheld from Portia is therefore:
= 520.06 + 121.63 + 1,391.77
= $2,033.46
The self parameter is required in every method of a class.
T
A class can be thought of as a blueprint that can be used to create an object.
T
The self parameter need not be named self but it is strongly recommended to do so, to conform with standard practice.
Answers
True. The self parameter is required in every method of a class. Therefore, it is a best practice to use self instead of any other name.
A class is a code template for creating objects. Objects have member variables and have behavior associated with them. In python, a class is created by the keyword class. The basic syntax of class creation is shown below:class ClassName: #statement-blockThe self-parameter is a mandatory parameter to be added in each method of a class. Self is a reference parameter that refers to the instance of the class.
Whenever an object is created for a class, the self parameter gets passed implicitly to each method defined in the class and it points to the object created. If you try to call a class method without the self parameter, it will throw an error. Therefore, it is mandatory to include the self parameter in every method of the class.The self parameter need not be named self but it is strongly recommended to do so, to conform with standard practice. This helps other programmers to understand the code better and will be able to give constructive feedback. The self keyword is not a reserved keyword in Python, but it is a widely used convention among Python developers to use self to represent an instance of a class.
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peter is a senior partner at his law firm and is an important member of his church and community. both his children are in college. peter's situation is most representative of which period of development?
Answers
Based on the fact that peter is a senior partner at his law firm, an important member of his church & community and also, his children are in college. Hence, his situation is most representative the period of development known as middle adulthood.
What is a period of development?In human development, the period of development is classified into 4 development which includes an infancy, childhood, adolescence, and adulthood.
The middle adulthood, as period of development begins around age 40 and ends at age 65. This period is marked by a narrowing life options, shrinking future as children leave home and career paths become more determined.
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if a monopolistically competitive firm has excess capacity a. it produces a level of output that places it on the negatively sloped portion of its average total cost curve. b. it is producing beyond the minimum efficient scale. c. it is experiencing diseconomies of scale. d. it has exhausted all economies of scale.
Answers
If a monopolistically competitive firm has excess capacity, it produces a level of output that places it on the negatively sloped portion of its average total cost curve.
What is monopolistic competition? Monopolistic competition is a market situation in which a large number of small firms sell somewhat different goods. This situation is identical to pure competition in that there is no restriction on new firms' entry or exit. However, because of the slightly differentiated products, each firm has some market power, resulting in monopolistic competition.
In the long term, monopolistically competitive companies would earn only normal profits since there is no entrance barrier, and they have to contend with excess capacity since the demand for each firm's product is relatively low.
For example, McDonald's and Burger King, which are both fast food restaurants, sell similar food, but they are not identical.
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Problem statement
• The owner of a real estate who owns high rise buildings wants
a system that will allow his employees to rent out his building’s
apartments to people.
• A Customer who is inte
Answers
A Customer who is interested in renting an apartment from the real estate owner requires a user-friendly system that enables them to search for
available apartments, view detailed estate information about each apartment (e.g., number of rooms, amenities, location), submit rental applications, and track the status of their application. The system should provide a seamless and efficient process for the customer to communicate with the real estate company, schedule property tours, sign employees rental agreements electronically, and make rental payments. Additionally, the customer may also require buildings access to relevant documents such as lease terms, rules, and regulations.
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According to the video, what products were made by Biomedical Engineers?
imaging systems
prescription drugs
artificial limbs
lasers for surgery
naturopathic
Answers
Answer:
Imaging systems
artificial limbs
lasers for surgery
Explanation:
I just did the assignment
Answer:
→imaging systems←
→artificial limbs←
→lasers for surgery←
( 1, 3, and 4)
Explanation:
Doing the Assignment, but I hope this helps
The person above is correct so all credit to them↑↑
How do management accountants help managers make business decisions?
Answers
Answer:
Relevant costs analysis
Audience targeting
Make or buy evaluations
Define Budgets
Explanation:
mark me brainlist plese
Keira is excited that her favorite brand of running gear has released a new hoodie in the company’s trademark color. Keira probably has a strong ________blank with this company.
Answers
Keira is thrilled that her preferred brand of athletic apparel has introduced a new sweatshirt in the logo color of the business. Keira most likely has a positive brand association with this business.
An association between your brand and a concept, image, emotion, experience, person, interest, or activity is known as a brand association. Purchase decisions are significantly influenced by this association, which might be immediately favorable or unfavorable.
When a person thinks of a brand, brand associations—such as "soft" for Cottonelle or "athletics" for Nike—come to mind.
The brand association aids in recalling your company's name and distinctive features, such as those that set you apart from your rivals. The brand association offers clients ideas, images, and attitudes that can aid in the brand recall by developing familiarity and strengthening recognized traits.
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How much y’all think I’m worth?
Y’all think ima great dancer?
Who follows me
Answers
Answer:
What????..............
The following information relates to current production of ouldoot wicker sotas at Backyard Posh: The regular selling price per wicker sota is $340. The company is analyzing the oppontunity to accept a special sales crder for 300 wicker solas at a price of 3240 per unit vernable marketeg and bo alfocied?
A. Decrease by 134,800
b. Iacrease by $21.000
c. Decrease by $21,800
D. Incroase by $34.800
Answers
The revenue would increase by $870,000 if Backyard Posh accepts the special sales order for 300 wicker solas at a price of $3240 per unit. This means option b. is correct.
To determine the change in revenue, we need to calculate the difference between the regular selling price and the special sales order price.
Regular selling price per unit: $340
Special sales order price per unit: $3240
Difference in price: $3240 - $340 = $2900
Now, let's calculate the change in revenue:
Change in revenue = Difference in price x Number of units
Change in revenue = $2900 x 300
Change in revenue = $870,000
Therefore, the revenue would increase by $870,000 if Backyard Posh accepts the special sales order for 300 wicker solas at a price of $3240 per unit.
The correct answer is: b. Increase by $870,000.
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why are medical related professions and human resources important?
Answers
Answer:
because sometimes they help us to get some medicine which can be used to cure a particular disease
For this assignment, you will create a multimedia presentation on Marketing, Sales, and Service tasks and work environments to demonstrate understanding of these careers.
Answers
Marketing is process of identifying, anticipating, and satisfying customer needs and wants through the creation, promotion, and distribution of the products or services.
What is distribution?In statistics, a distribution refers to the way in which a set of data is spread out or organized. It provides information about the possible values of a variable and how frequently those values occur. A distribution can be represented graphically using various types of charts such as histograms, box plots, and density plots. Common characteristics of a distribution include its central tendency (e.g., mean, median, mode), its spread or variability (e.g., range, standard deviation), and its shape (e.g., skewed, symmetrical). Understanding the distribution of a dataset is important in many fields, including finance, economics, and science, as it can provide insights into the underlying patterns and relationships in the data.
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Which of the following is an example of successful corporate branding?
A. A company's logo is memorable
O B. A company's logo colors stand out
O C. A company is a leader in fast food
D. A company's tagline gets your attention
Answers
A successful example of corporate branding is a memorable logo of the company.
What is Corporate Branding?
Corporate branding is the practice of promoting a corporate entity's brand name rather than particular goods or services. Because a corporate brand often has a considerably wider reach than a product or service brand, different actions and ways of thinking are involved in corporate branding.
Therefore, corporate branding is the process of presenting a company's image or identity to customers. Typically, a company's brand reflects its values, brand voice, and messaging. Building corporate brands is a common strategy used by marketing experts to show how they want the company to be seen.
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The materials price variance is generally calculated at the time materials are purchased because ______. Multiple select question. management can generate more timely variance reports GAAP requires variances to be recognized when they are incurred it allows materials to be carried in the inventory accounts at standard cost it simplifies bookkeeping
Answers
The calculation on materials price variance is been done at time that a purchase is made so that;
it simplifies bookkeeping.
it allows materials to be carried in the inventory accounts at standard cost.
management can generate more timely variance reports.
Materials price variance can be regarded as difference that exit between the actual as well as budgeted cost that is needed to acquire materials.This is then multiplied by the total number of units that is been purchased.Therefore, materials price variance helps in simplification of bookkeeping.
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the number of workers hired will depend mostly upon employees if:
Answers
The number of workers hired is mostly influenced by factors related to the employees themselves. These factors may include the workload, skill requirements, productivity, and availability of the existing workforce.
The number of workers hired by an organization is influenced by several factors related to the employees. These factors include:
Workload: If the workload exceeds the capacity of the existing workforce, the organization may need to hire additional workers to distribute the workload effectively and maintain productivity. Increased demand for products or services can also drive the need for more workers to meet customer needs.
Skill requirements: The skill sets required for a particular job or project can determine the need to hire workers with specific qualifications or expertise. If the existing employees do not possess the necessary skills, hiring new workers becomes necessary to fulfill those requirements.
Productivity: The productivity levels of the existing workforce play a significant role in determining whether additional workers are needed. If the current workforce is unable to meet production targets or deliver desired outcomes efficiently, hiring more workers can help enhance productivity and meet organizational goals.
Availability of the existing workforce: The availability of employees within the organization, including factors such as leaves, turnover, or reassignments, can impact the decision to hire new workers. If there are gaps in the workforce due to absences or departures, hiring new employees may be necessary to maintain operational continuity.
In conclusion, while there may be other factors at play, the decision to hire more workers is primarily influenced by the organization's assessment of its current workforce's capabilities and the need to meet workload demands, skill requirements, productivity targets, and fill gaps in the existing workforce.
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