New White Inc. issued a 20-year, 10% semiannual coupon, $1,000 par value bond five years ago. Since then the market interest rate has decreased to 12%. What is the PV of the bond today? $1,197.93 $100
Answers
To calculate the present value (PV) of the bond, we need to discount the future cash flows (coupon payments and the principal) at the market interest rate.
First, let's calculate the number of coupon payments remaining until maturity. Since the bond has a 20-year maturity and it was issued five years ago, there are 20 - 5 = 15 years remaining. Since it is a semiannual bond, there are 15 * 2 = 30 coupon payments remaining.
Next, let's calculate the present value of the coupon payments. The bond has a 10% semiannual coupon rate, so each coupon payment is $1,000 * 0.10 / 2 = $50.
We'll discount these coupon payments at the market interest rate of 12%, which is 0.12 / 2 = 0.06 for the semiannual periods.
Using the present value of an ordinary annuity formula, the present value of the coupon payments is:
PV_coupon = $50 * [(1 - (1 + 0.06)^(-30)) / 0.06] = $715.62
Next, let's calculate the present value of the principal. The principal amount is $1,000, and it will be received at the end of the bond's term. We'll discount the principal at the market interest rate of 12%, which is 0.12 / 2 = 0.06 for the semiannual periods.
Using the present value formula for a single cash flow, the present value of the principal is:
PV_principal = $1,000 / (1 + 0.06)^30 = $482.31
Finally, we can calculate the present value of the bond by summing up the present value of the coupon payments and the present value of the principal:
PV_bond = PV_coupon + PV_principal = $715.62 + $482.31 = $1,197.93
Therefore, the present value of the bond today is $1,197.93.
To learn more about present value visit:
brainly.com/question/30712339
#SPJ11
Related Questions
» We are taught that we can
This is simply not true!
dave ramsey
Answers
Answer:
Is this a question or a statement? Please clarify.
Explanation:
Which is the best example of ethical investing?
A. Lucy buys stock in a local recycling company.
B. Fred invests in a makeup company that tests on animals.
C. Rick buys stock in a company that moved its operation to a state
that will let it flush its pipes into nearby waterways.
O D. Ethel invests in a company that saves money by paying its staff
low wages.
Answers
Answer:
A. Lucy buys stock in a local recycling company.
Explanation:
Larry lives in a rundown house next to the lot that Gus has claimed and is tired of the incessant noise coming from Gus's camper, including loud music and TV. In addition, Gus hosts crazy dance parties outside of his camper every night. This has been going on for three months, and Larry can't take it any longer. Gus's activities represent _____. trespass trespass nuisance nuisance negligence negligence fraud
Answers
Answer:
nuisance
Explanation:
how is simple interest different from compound interest?
A. compound interest is not paid on the principal, or initial deposit.
B. simple interest is paid on the original deposit plus any interest earned.
C. compound interest is only paid on the principal, or initial deposit.
D. Simple interest is only paid on the principal, or initial deposit.
Answers
Simple interest is frequently a fixed proportion of the outstanding sum financed or lent or given away over a defined time period. When present value builds up and is then added to the accumulated interest from earlier periods, borrowers are forced to pay duty on principal in addition to principal.
Why is compound interest different from simple interest?On the principal, or original loan amount, of a loan, simple interest is calculated. Since compound interest is computed using that both original and the interest paid from previous periods, it is regularly alluded to as "credit on interest".
How does simple interest differ from compound interest?What separates compound interest from simple interest? Simple interest just takes into account the principal for computing interest charges, but compound interest considers both the outstanding amount and all prior interest charged.
To know more about interest Visit:
https://brainly.com/question/29480777
#SPJ1
the goal of this activity is to challenge your knowledge of the barriers to diversity. rev: 11 07 2019 qc cs-189527 the following represent hypothetical statements made by people in organizations. for each statement, select the specific barrier to diversity that the example best depicts.
Answers
Organizations encounter several difficulties and obstacles in efficiently expanding and embracing diversity in their workplaces.
Organization barriers:Some of these hurdles are caused by employees who are opposed to change the company to make it more diverse. This activity is significant because managers will regularly encounter resistance to this form of change, and managers must be able to detect when this occurs so that they can manage the business and its people through this necessary and highly important type of change.
"Affirmative action measures accomplish nothing but make it more difficult for talented white guys to obtain employment."
]
Fear of discrimination towards members of the majority group.
"This position necessitates the ability to interact with groups of mostly Japanese males. Anyone other than a Japanese guy will lack the necessary history to gain the trust of potential clientele."
Learn more about Barriers:
brainly.com/question/14277264
#SPJ4
The main impact of quantitative easing on the economy is that it
1, pushes long-term interest rates down and encourages investors to purchase more risky assets like shares, which can encourage more business investment and consumer spending.
2, pushes long term interest rates up and encourages investors to purchase more risky assets like shares, which can encourage more business investment and consumer spending
3, pushes long term interest rates up and encourage investors to purchase more risky assets like shares, which can encourage more business investment and consumer spending
4, encourages banks to increase their lending, as explained by the money multiplier
5, involves the provision of free money to private banks.
Answers
The main impact of quantitative easing on the economy is pushes long-term interest rates down and encourages investors to purchase more risky assets like shares.
Quantitative easing is a monetary policy tool used by central banks to stimulate the economy. By purchasing government bonds and other securities from the market, central banks inject money into the financial system, which lowers interest rates. This decrease in long-term interest rates incentivizes investors to seek higher returns by investing in riskier assets like shares. Increased investment in businesses and higher consumer spending can result from these actions, stimulating economic growth. Option 1 accurately describes the main impact of quantitative easing.
To learn more about rates
https://brainly.com/question/29451175
#SPJ11
How did Joe Biden get president?
⇔∈∉∧⊇←²³√∛·×÷±≈≠≥≤≡≅⇒,㏒
Answers
Answer:
Dont know im canadian
Explanation:
What is the relationship between interest rates and aggregate spending?
A.
when interest rates increase, aggregate spending also increases
B.
when interest rates increase, aggregate spending decreases
OC. they do not have any relation
OD
both the factors are affected favorably by any external factor
O E.
both the factors are affected adversely by any external factor
Answers
Answer:
B. when interest rates increase, aggregate spending decreases
Explanation:
Interest rates and aggregate spending have an inverse relationship. An increase in interest rates results in a decrease in aggregate expenditure. Interest refers to the cost of money, while aggregate spending is the total consumption in the economy.
When the cost of money is high, firms and households will stop borrowing, which reduces spending. It means businesses will not expand, and domestic consumption reduces. The net effect is a lower demand for goods and services, resulting in lower aggregate spending.
Answer:
when interest rates increase, aggregate spending decreases
Explanation:
I just took the test, good luck everyone
Brenda is a housekeeper who is supposed to stand in the presence of her employers as a sign of respect. Given this information, it can be said that Brenda is required to show __________.
Answers
Given the information provided, it can be said that Brenda is required to show **deference**.
The expectation for Brenda to stand in the presence of her employers signifies a gesture of respect and deference towards them. Deference refers to showing submission, respect, or yielding to someone of higher authority or social status. In this context, Brenda's act of standing demonstrates her acknowledgment of her employers' authority and their position in the household hierarchy.
Showing deference can be a cultural or social norm in certain contexts or professions, emphasizing a power dynamic or established social etiquette. It is a way of displaying respect and acknowledging the perceived status or authority of others.
Learn more about social norm here:
https://brainly.com/question/29348277
#SPJ11
Suppose a farmer has three kinds of land for growing peaches; good - better - and best. As the farmer increases production - she will use the best land first - and costs will be low. At some point - she will run out of the best land and will have to start using the better land - and costs will be a little higher. This describes the:
Answers
a farmer has three types of lands. she- uses the best land first costs will be lower. And then start using the better land - and the cost will be a bit higher. This describes: the law of increasing opportunity cost.
According to the law of increasing opportunity cost, an organization's opportunity cost increases as the level of production remains high. In particular, the opportunity cost of producing the next unit will increase if the output of one product increases. This occurs as a result of the reallocation of resources by the manufacturer to create that product. However, the corporation would make more money if these resources were used for their original purpose.
The value of the best additional choice when you decide to take a particular action is called the opportunity cost.
To learn more about the law of increasing opportunity cost click here:
https://brainly.com/question/28233852
#SPJ4
The surge impedance of the power cable, as compared to that of the overhead power transmission line is:
Select one:
O the surge impedance of the power cable is usually equal to that of the overhead transmission line.
O the surge impedance of the power cable can be lower or greater than that of the overhead transmission line.
O the surge impedance of the power cable is usually less than that of the overhead transmission line.
O the surge impedance of the power cable is usually greater than that of the overhead transmission line.
Answers
The surge impedance of the power cable can be lower or greater than that of the overhead transmission line.
Surge impedance refers to the characteristic impedance of a transmission line during transient conditions, such as lightning strikes or switching surges. It is influenced by various factors, including the line's physical dimensions, conductor spacing, and dielectric properties. While overhead power transmission lines typically have a well-defined surge impedance due to their uniformity, power cables can have different surge impedances depending on their design, materials, and installation conditions.
Factors such as the cable's insulation type, conductor arrangement, and surrounding medium can affect its surge impedance. For example, underground cables may have lower surge impedance compared to overhead lines due to the proximity of the conductor to the surrounding earth, which alters the effective dielectric constant. On the other hand, certain types of power cables, such as high-voltage submarine cables, may have higher surge impedances due to their specific design considerations.
Learn more about power cable here:
https://brainly.com/question/14468889
#SPJ11
sally buys 100 shares of stock for price 204.00. (if stock goes up 0.05 she makes $5). she wants some protection against her stock going down and buys one 195-strike put for a price of $0.50 (note, these options have a multiplier of 100, so the put costs $50). if the stock finishes at $190 on the day the put option expires, how much money did sally make or lose on these transactions?
Answers
Sally will profit if the value of his stock rises. She would break even at a price of $89 ($88 cost of stock plus $1 premium paid for the put).
What does stock in economics mean?The ownership certificates of any corporation are referred to as stocks in a general sense. On the other hand, a share alludes to the stock certificate of a specific business. A shareholder is someone who owns stock in a specific corporation. Stocks come in two varieties: common and favored.
What are examples and stock?Stocks signify ownership in a publicly traded business. You acquire ownership of a corporation when you purchase its stock. You own 1% of a corporation, for instance, if you purchase 1,000 of its 100,000 shares.
To know more about Stock visit:
https://brainly.com/question/29992015
#SPJ4
which principle defines how many times something repeats.
Answers
The principle that defines how many times something repeats itself is called the repetition compulsion.
This psychological principle was studied by psychoanalyst Freud as an essential component for mental analysis, as the discovery of patterns of repetitive behavior is aimed at the unconscious and instinctive search for:
pleasure and to avoid contempt.Therefore, repetition compulsion is related to repetition of behaviors in the form of dreams and neuroses in the form of the individual unconsciously seeking to assume a slightly more dominant role over an event that may have generated trauma.
Learn more here:
https://brainly.com/question/1968959
What is the difference between a routine and a major decision
Answers
Answer: routine decision- the type made every day without much though
planned decision- use more time and energy to make the best choice
Explanation: i really hoped it helped.
When filing your tax return, what is the maximum amount you can deduct for a capital loss?.
Answers
When filing your tax return, the maximum amount you can deduct for a capital loss is $3,000(for individuals and married filing jointly) or $1,500 (for married filing separately).
What is a tax return?A tax return is such or more forms submitted to a taxing body that include earnings, outlays, and other crucial tax data.
Tax returns give taxpayers the option to determine their tax liability, plan out their tax payments, or ask for refunds for any taxes they have paid in excess of what is required.
Some characteristics is of tax returns are-
For just an individual or corporation having reportable income, such as wages, interests, dividends, capital appreciation, or other earnings, tax returns must typically be filed annually.The tax return is just a document submitted to a taxing authority that lists earnings, outlays, and other pertinent financial data.Taxpayers compute their tax liabilities, set up tax payments, and request refunds for overpaid taxes on their tax returns.Tax returns must typically be filed yearly.To know more about tax returns, here
brainly.com/question/27300507
#SPJ4
Match the examples with the types of goods. Please help!
Answers
Answer:
Omar buys a snack pack of chips that he noticed while in line at the store - Convenience impulse good
Joaquin pays for renters' insurance so that he will get paid if his belongings are destroyed in accident or burglary - Unsought good
Jamie goes to the store to buy toothpaste - Convenience staple good
Wanda reads review of different video cameras to decide what brand she wants, and then chooses the store with the lowest price on that item - Shopping good
Adriana only buys doughnuts from her favorite local doughnut shop - Specialty good
Explanation:
I have been able to match the examples with the type of goods.
Unsought good is the good that the consumer has no knowledge of. Also, he wasn't thinking of buying such good. It is usually purchased out of fear.
Specialty good usually have specific characteristics and benefit. Therefore, the consumer has a reason for purchasing it.
Shopping good is one purchased after the consumer had compared prices, quality, etc in more than one store.
Convenience staple good is the good which is consumed regularly.
Convenience impulse good is one which entices the consumer and he makes purchase without researching or thinking.
Answer: Omar buys a snack pack of chips that he noticed while in line at the store - Convenience impulse good
Joaquin pays for renters' insurance so that he will get paid if his belongings are destroyed in accident or burglary - Unsought good
Jamie goes to the store to buy toothpaste - Convenience staple good
Wanda reads review of different video cameras to decide what brand she wants, and then chooses the store with the lowest price on that item - Shopping good
Adriana only buys doughnuts from her favorite local doughnut shop - Specialty good
in the internalization theory of foreign direct investment, what are "transaction costs"?
Answers
In the internalization theory of foreign direct investment, "transaction costs" refer to the costs associated with completing a transaction between two parties in the market.
These costs include the costs of negotiating, monitoring, and enforcing contracts. In the context of foreign direct investment, transaction costs refer to the costs that firms face when engaging in cross-border transactions, such as the costs of managing a foreign subsidiary, coordinating activities between different units in different countries, and dealing with different legal systems and cultural norms.
Transaction costs are an important consideration in the internalization theory of foreign direct investment because they help to explain why firms may choose to undertake foreign direct investment rather than relying on the market to fulfill their needs.
By internalizing transactions within the firm, firms can avoid many of the costs associated with completing transactions in the market, which can lead to greater efficiency and profitability.
To know more about foreign direct investment refer here:
https://brainly.com/question/27540611#
#SPJ11
An international business is a firm that
Part 2
A. hires non-U.S. citizens.
B. produces a wide range of products.
C. is not from the United States.
D. engages in international trade or investment.
Answers
Option D: An international business is a firm that engages in international trade or investment.
Therefore, the correct answer is option D. An international business is a company that conducts business across national borders. This can include importing and exporting goods, investing in foreign markets, and operating in multiple countries.
It is not necessarily defined by the nationality of its employees, the range of products it produces, or the country in which it is headquartered. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.
For such more questions on international business:
brainly.com/question/14690606
#SPJ11
Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:
Multiple choice question.
corporate culture where there is little trust
corporate culture that doesn't empower employees
negative corporate culture
corporate culture that emphasizes service to others
Answers
An organization which preaches empathy and hence instills a cultural value which resonates around togetherness will show low levels of harsh and formal control and flexible policies.
When an organization shows less need for policy manuals, then it exhibits its level of flexibility and accommodation. Being less rigid in terms of being bent on formal guidelines and principles is a sign that the organization is empathic and promotes service to others. Such corporate policy framework is positive and hence, shows the orgainiziation's commitment towards social inclusion.Learn more : https://brainly.com/question/14378811?referrer=searchResults
Answer: corporate culture that emphasizes service to others
Bitcoin. Sweat. Tide. Meet the Future of Branded Currency
What is Bitcoin and where did it come from?
What kinds of businesses are accepting Bitcoin?
What is the definition of money, according to Kemp?
What are some other forms of currency in existence now?
Can you think of other examples of currency?
Answers
Bitcoin is known to originated from no where and it is seen as a kind of a digital currency invented by a man or group of men called Satoshi Nakamoto in 2008.
What kinds of businesses are accepting Bitcoin?They are:
Microsoft. Overstock.Starbucks, etc.What is the definition of money, according to Kemp?Kemp defines money as a given expression of value that is said to be often agreed upon by people.
What are some other forms of currency in existence now?Litecoins.BerkShares. Equal Dollars.Ithaca Hours.Other examples of currency are bonds, commodity money, etc.
Learn more about Bitcoin from
https://brainly.com/question/9170439
#SPJ1
The following would be an example of a variable input in the production of pizza:
a) the rent on the locale
b) the oven
c) the cash register
d) cheese
Answers
In the production of pizza, there are two types of inputs; variable input and fixed input. A variable input is an input that varies with the output while fixed input remains constant.
An example of a variable input in the production of pizza is cheese.A variable input is one that can be easily adjusted in production. It can be increased or decreased in proportion to the output. This means that the quantity of a variable input changes with the output. Cheese is a variable input because its quantity changes as the production of pizza changes. For instance, if more pizzas are being produced, more cheese will be required and the reverse is true.The other inputs listed in the options are fixed inputs.
A fixed input is an input that cannot be changed in the short run. A change in the quantity of a fixed input will lead to an increase or decrease in the output. In the production of pizza, the oven and locale are fixed inputs. The quantity of these inputs does not change with the production of pizzas. Therefore, the answer to this question is D) cheese.
To know more about variable visit:
https://brainly.com/question/15078630
#SPJ11
From 2011 to 2018, ESPN lost 14 million cable tv subscribers, costing the company over a billion dollars annually
Answers
From 2011 to 2018, ESPN lost 14 million cable tv subscribers, costing the company over a billion dollars annually. Thus, the given statement is false.
What was the loss of ESPN?ESPN has long served as a symbol of the cable and broadcast industries' insensitivity to cord-cutting and changes in the TV market. Executives sued businesses that aimed to provide customers with more choice in how they saw video material after years of downplaying the trend as something only the poor did.
Surveys suggest that 56% of customers would quickly sever ties with ESPN if it meant saving the $8 per month they pay for the channel. Clearly, ESPN executives assumed cord-cutting was little more than a fad that would simply end once Millennials started having children.
Learn more about ESPN here:
https://brainly.com/question/13960364
#SPJ1
What expansionary fiscal tools can be used to promote employment and economic growth when price levels are not a concern?
Answers
Expansionary fiscal tools can be used to promote employment and economic growth when price levels are not a concern including increasing government spending, decreasing taxes, or increasing government transfers.
What is the purpose of expansionary fiscal tools?The purpose of expansionary fiscal tools is to augment growth to a healthy economic level, which is significantly required during the contractionary phase of the business cycle.
In this phase, the government has the desire to decline the standard of unemployment, enhance consumer demand, and circumvent a recession. If a recession has already taken place, then it searches to end the downturn and prevent a recession.
According to the context of this question, each expansionary fiscal tool has its own terms and condition which is imposed on the basis of certain criteria. For this, enhancing the spending of the government, reducing the taxation rates, increasing the transfer made by the government, etc. are the major ones.
To learn more about Expansionary fiscal tools, refer to the link:
https://brainly.com/question/25589179
#SPJ1
how does the health of an economy affect business?
Answers
Answer:
This is a very broad question. The health of the economy affects business in many ways. First of all the health of economy is an outcome of business performance.
You need to think of this case as one comes from another and influences it back. Please find the attached diagram.
Explanation:
( b ) explain five circumstances under which a high population growth may be desirable
Answers
Answer:
There is a need to increase the demand in market for both goods and services.
There is a need to attract foreign investors
As societies modernize, mortality rates fall while birth rates remain high leading to high population growth rates.
Higher population growth may be beneficial in high-income countries where there is currently a tendency for population growth rates to decline
Development in agriculture, better techniques to grow more and better quality food. Food available at all the times due to better storage conditions. So people do not die of starvation when food is not available.
Explanation:
High population growth may be desirable in the market, investors, societies, high-income, and agriculture.
What is a population?
The population is the number of people residing in a certain area. Estimating the population enables us to determine how many beings there are and how best to respond.
The market needs to see an increase in demand for both goods and services.It is necessary to draw in international investors.Modern societies see declining rates of death while experiencing large families, which results in rapid population growth.In high-income nations which have now a propensity for population increase to drop, higher growing population may well be advantageous.advancements in agriculture, new ways to produce more food of higher quality. Food is always available because to improved storage circumstances. Consequently, when food is scarce, people do not perish from hunger.Learn more about population, Here:
https://brainly.com/question/27991860
#SPJ2
why is training important for a good job?plz answer
Answers
Advantages of training
Increased job satisfaction and morale among employees.
Increased employee motivation.
Increased efficiencies in processes, resulting in financial gain.
Increased capacity to adopt new technologies and methods.
Increased innovation in strategies and products.
The minimum-efficient scale for a typical firm producing water filters is 30,000 water filters. if the market demand is 630,000 water filters, how many firms producing at minimum-efficient scale can the market support
Answers
Answer:
10,000
Explanation:
2.
Why do people run a business?
Answers
Answer:
to make money
Explanation:
What can be a benefit of using interviews to select employees to hire?
A. Insights from employees' examples
B. Accurate prediction of honesty
C. Good measurement of intelligence
D. Errors from employee bias
Answers
Answer:
B. Accurate prediction of honesty
Explanation:
Interviews are one of the most effective tools that human resource managers use to determine if a candidate is a match or not for a specific job. Flexibility is the key word here. That allows both the candidate and the interviewer, the possibility of understanding what are the skills needed for a certain job and if the candidate possesses them. When someone answers a test, you can tell if the candidate knows about the subject or not, but when he/she is interviewed, you can ask for more detail and examples that help clarify the candidate's ideas, expectations and capabilities. E.g. a candidate states that he/she knows how to use WordPress very well, and the interviewer can ask him/her about specific tasks to verify if that is true.
Answer:
A. Insights from employees’ examples
Explanation:
Just took the quiz.
If a supply shock dramatically increases the prices of domestic goods in China, the American dollar will _____ and the Chinese yuan will ____.
depreciate, depreciate
depreciate, appreciate
appreciate, depreciate
appreciate, appreciate
unknown, depreciate
Answers
appreciate, depreciate