Business, 03.07.2019 00:30, deja163

Tom cruise lines inc. issued bonds five years ago at $1,000 per bond. these bonds had a 25-year life when issued and the annual interest payment was then 15 percent. this return was in line with the required returns by bondholders at that point as described below: real rate of return 5 % inflation premium 5 risk premium 5 total return 15 % assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. the bonds have 20 years remaining until maturity. compute the new price of the bond. use appendix b and appendix d for an approximate answer but calculate your final answer using the formula and financial calculator method

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:20, alexandroperez13

Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?

Answers: 2

continue

Business, 22.06.2019 11:20, leshayellis1591

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Answers: 1

continue

Business, 22.06.2019 11:30, Merida06

12. to produce a textured purée, you would use a/an a. food processor. b. wide-mesh sieve. c. immersion blender d. food mill. student a incorrect which is correct answer?

Answers: 2

continue

Business, 22.06.2019 17:40, briannagiddens

Adamson company manufactures four lines of garden tools. as a result of an activity analysis, the accounting department has identified eight activity cost pools. each of the product lines is produced in large batches, with the whole plant devoted to one product at a time. classify each of the following activities or costs as either unit-level, batch-level, product-level, or facility-level. activities (a) machining parts. (b) product design. (c) plant maintenance. (d) machine setup. (e) assembling parts. (f) purchasing raw materials. (g) property taxes. (h) painting.

Answers: 2

continue

Do you know the correct answer?

Tom cruise lines inc. issued bonds five years ago at $1,000 per bond. these bonds had a 25-year life...