Business, 22.04.2021 16:10, ayoismeisalex
Suppose you own a 30-year bond issued by CQ Telecommunications with a face value of $1,000 paying a semiannual coupon interest rate of 6% that has 10 years remaining until maturity. If interest rates in the general economy jump to 8% after one year, no one will want to buy your 6% bond for $1,000, because it pays only $ per year in interest. If you want to sell the bond, then the bond price will have to be . If rates on similar bonds are now at 8%, then the discount rate is 8% (or 4% twice a year for 20 payments). The task is to calculate the present value of the interest payments and the repayment lump sum. To do so, use Appendix A-2 and Appendix A-4 in your textbook. Find the column for 4% interest and the row for 20 periods. (The number of periods, n, is equal to 20, because there are 20 semiannual interest payments in the remaining 10 years until the bond matures.) You can use the following equation to determine the value of a bond (or bond selling price):
Answers: 1
Business, 21.06.2019 19:20, ellycleland16
Which of the following best explains why large companies have an advantage over smaller companies? a. economies of scale make it possible to offer lower prices. b. the production possibilities frontier is wider for a larger company. c. decreasing marginal utility enables more efficient production. d. increasing the scale of production leads to a reduction in inputs.2b2t
Answers: 1
Business, 22.06.2019 04:00, brucewayne8499
Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.
Answers: 2
Suppose you own a 30-year bond issued by CQ Telecommunications with a face value of $1,000 paying a...
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