Gugenheim, Inc., has a bond outstanding with a coupon rate of 6.3 percent and annual payments. The yield to maturity is 7.5 percent and the bond matures in 19 years. What is the market price if the bond has a par value of $2,000

Answers

Answer 1

Answer:

Bond Price​= $1,761

Explanation:

Giving the following information:

Par value= $2,000

Cuon= 0.063*2,000= $126

YTM= 7.5% = 0.075

Periods= 19 years

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 126*{[1 - (1.075^-19)] / 0.075} + [2,000/(1.075^19)]

Bond price= 1,254.84 + 506.13

Bond Price​= $1,761


Related Questions

Sheffield Corp. has equipment with a carrying amount of $2500000. The expected future net cash flows from the equipment are $2545000, and its fair value is $2036000. The equipment is expected to be used in operations in the future. What amount (if any) should Sheffield report as an impairment to its equipment?

Answers

Answer:

No impairment loss would be reported

Explanation:

The computation is shown below;

Impairment loss = carrying value - recoverable amount

Where,

The recoverable amount would be the higher amount of fair market value and value in use

So the recoverable amount would be $2,545,000

Now the impairment loss is

= $2,500,000 - $2,545,000

= -$45,000

Since the impairment loss comes in negative so no impairment would be recorded

Wilson Corporation's activity for the first six of the current year is as follows: Machine-Hours Electrical Cost January 2,000 $ 1,560 February 3,000 $ 2,200 March 2,400 $ 1,750 April 1,900 $ 1,520 May 1,800 $ 1,480 June 2,100 $ 1,600 Using the high-low method, the fixed portion of the electrical cost each month would be:

Answers

Answer:

Wilson Corporation

Using the high-low method, the fixed portion of the electrical cost each month would be:

$400.

Explanation:

a) Data and Calculations:

Month        Machine-Hours      Electrical Cost

January           2,000                   $ 1,560

February         3,000                  $ 2,200

March             2,400                   $ 1,750

April                1,900                   $ 1,520

May                1,800                    $ 1,480

June              2,100                    $ 1,600

Highest activity occurred in February and the lowest activity occurred in May.  These two period's activity data are used to compute the fixed cost for each month as follows:

February         3,000                  $ 2,200

May                  1,800                   $ 1,480

Difference       1,200                   $720

Variable cost per unit = $720/1,200 = $0.60

For February, the total variable cost is $1,800 ($0.60 * 3,000)

Therefore, the fixed cost = total cost minus the variable cost

= $2,200 - $1,800

= $400

Check:

For the month of May, the total variable cost is $1,080 ($0.60 * 1,800)

Therefore, the fixed cost = $1,480 - $1,080 = $400

When creditors, managers, and investors look at expenses as a percentage of revenue, they are __________.

Answers

Answer:

Doing a financial statement analysis.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.

Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.

A bidding firm, A, is worth $27,000 as a stand-alone entity. A target firm, B, is worth $12,000 as a stand-alone entity, but $18,000 if it is acquired and integrated with Firm A. Several other firms are interested in acquiring Firm B, and Firm B is also worth $18,000 if it is acquired by these other firms. If A acquired B, would this acquisition create value

Answers

Answer and Explanation:

The computation is shown below:

In the case when A purchased B, so the value would be created for

= $18,000 - $12,000

= $6,000

This represents that if a Firm B purchased By firm A that values at $18,000 i.e. $6,000 more than the stand alone to firm B

Hence, the same is to be considered

McDonald's Corp has a preferred stock paying a dividend of $19 and has a market price of $178. Calculate the cost of capital for the preferred stock.

Answers

Answer:

McDonald's Corp

The cost of capital for the preferred stock is:

10.67%

Explanation:

a) Data and Calculations:

Market price of preferred stock = $178

Preferred stock dividend = $19

Cost of capital = Preferred stock dividend/Market price of preferred stock * 100

= $19/$178 * 100

= 10.67%

b) The cost of capital for McDonald's preferred stock is the finance cost or interest cost that it must incur for financing its projects using preferred stock.  This represents the 10% of the preferred stock value that is paid out to preferred stockholders.

Consider an Erlang loss system. The average processing time is 3 minutes. The average interarrival time is 4 minutes. The number of servers is 2. What is the rate of lost demand in customers per hour?
A. 1.33
B. .65
C. 1.5
D. 2

Answers

Answer:

D. 2

Explanation:

The computation of the rate of lost demand is shown below;

Given that

p = 3

a = 4

M  =2

Now

r = p ÷ a

=3 ÷ 4

= 0.75

Now determine the value from the erlang table having r = 0.75 and M = 2

= 0.123  

Now,

The  Rate of lost demand is

= demand rate × 0.123 × 60minutes

= (1 ÷ 4) × 0.123 × 60

= 1.845 or 2

= 2

Hence, the correct option is d.

The calculated rate of lost demand in customers per hour is 2.

Given Data

Average processing time (p) = 3

Average interarrival time (a) = 4

Number of servers (m)  =2

r = p/a

r = 3/4

r = 0.75

The value derived from erlang table having r = 0.75 and M = 2 is 0.123.

 

The formula to be used to derive the Rate of lost demand is {Demand rate * P(r,m) * 60 minutes)

Rate of lost demand = (1/4) * 0.123 * 60

Rate of lost demand = 1.845

Rate of lost demand =  2

Therefore, the Option D is correct because the calculated rate of lost demand in customers per hour is 2.

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( A salesperson is trying to decide which element of the sales presentation mix to emphasize in a particular presentation . She wants to make sure her communication will resonate with the prospect What term describes the process this salesperson is going through ?

Answers

Answer:

she is trying to persuade the people to buy her products.

Explanation:

if you persuade the person the people

Legal status of a person or entity that cannot repay the debts they oweStays on credit report for 7 years

Answers

Answer:

i think its 5

Explanation:

because the overtime of this will add up

Dwight is an art history major, but he is attending a seminar on quantum physics with his roommate. What part of listening would he have the MOST trouble with at the seminar?

responding


broadening


hearing


comprehending

Answers

Based on the fact that Dwight is an art history major, the part of listening that he is most likely to have trouble with is comprehending.

Why would comprehending be challenging?

When engaged in listening, the part of comprehending often requires that the listener has background knowledge about what the speaker is saying. That way they are able to use that knowledge to understand the speaker better.

Dwight is an art history major and not studying anything related to physics so he would most likely find comprehension difficult in the seminar.

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Based on predicted production of 26,000 units, a company anticipates $507,000 of fixed costs and $448,500 of variable costs. The flexible budget amounts of fixed and variable costs for 24,000 units are:___________.a) $468,000 fixed and $414,000 variable.b) $414,000 fixed and $507,000 variable.c) $468,000 fixed and $448,500 variable.d) $507,000 fixed and $448,500 variable.e) $507,000 fixed and $414,000 variable.

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

26,000 units:

Total variable costs= $448,500

Fixed costs= $507,000

First, we  need to determine the unitary variable cost:

Unitary variable cost= 448,500/26,000

Unitary variable cost= $17.25

Now, the total cost for 24,000 units:

Total variable cost= 24,000*17.25= $414,000

Total fixed cost= $507,000

Total cost= $921,000

According to the law, a person under the age of sixteen can only work 18 hours a week while school is in session

true or false

Answers

false . a teenager between 16-17 years old can’t work over 30 hours, not 18.

If a person has ATM fees each month of $18 for 6 years, what would be the total cost of those banking fees?

Answers

Based on the cost of the ATM fees per month, the total cost of the banking fees in 6 years is  $1,296

What is the total of the banking fees?

The total fees charged by the bank as ATM fees can be solved by the formula:

= Fees per month x number of months

Solving for the total fees charged by the bank gives:

= 18 x 6 x 12 months a year

= 18 x 72

= $1,296

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for personal finance course

Answers

.E) This would be the correct answer

planning concerned with long-range decisions such as defining the scope of business is referred to as

Answers

Answer: strategic planning

Explanation:

A planning concerned with long-range decisions such as defining the scope of business is referred to as the strategic planning.

Strategic planning helps in giving a business or an organization a direction which is required in knowing where the company is presently and where the company intends going.

The strategic plan shows the visions,, missions, of the organization and the necessary steps that such organization will take to achieve its goals.

An example of a cost that is likely to have a direct relationship with products being manufactured is

Answers

Answer:

An example of a cost that is likely to have a direct relationship with products being manufactured is:

direct cost of raw materials.

Explanation:

Other direct costs that affect the cost of the products directly are direct labor costs and direct overhead costs.  They are traceable to the products being manufactured.  This is why they are called direct costs.  They can be attributed to the unit of production.  The opposite is the indirect  costs of raw materials, labor, and overheads.  These costs cannot be traced to units of the product being produced.

According to government surveys, about _____ of all U.S. business owners choose to run their businesses primarily out of their home.
a. 35 percent
b. 25 percent
c. half
d. 10 percent

Answers

Answer:

Half

Explanation:

As per online research, the latest data indicate that over 50 percent of business owners choose to operate from home. As high as 79 percent as started at home. After three and a half years of operation, over 50 percent prefer to work from home.

Explain why the "pay-what-you-can model" can be used by Panera Cares cafe, but likely not the other businesses along the supply chain (i.g. framers, ranchers, veterinarians, etc.)

Answers

Under the chain’s nonprofit arm, the stores operated on a pay-what-you-can-model. A “pay-what-you-can-model” confuses many honest customers and encourages freeloaders and the dishonest.

Customers could pay as much or as little as they wanted for sandwiches, soups, and other menu items, which carried only suggested prices. The hope was that enough of them would “pay it forward” for those who were less well off.

Panera Cares cafe embarked on pay-what-you-can-model which is in contrast to a typical transaction in a store—one pays for something, one gets what one paid for—a “pay-what-you-can-model” is a lot more hazy transaction between buyer and seller, since it mixes the market with charity.

Therefore, the fact that, other businesses along the supply chain (i.g. framers, ranchers, veterinarians, etc.) are not run on charity, the pay-what-you-can-model cannot be used by profit oriented businesses.

What is a pay-what-you-can-model?

Pay-what-you-can-model is a non-profit or for-profit business model which does not depend on set prices for its goods, but instead asks customers to pay what they feel the product or service is worth to them. It is often used as a promotional tactic, but can also be the regular method of doing business.

Therefore, the correct answer is as given above. That is, other businesses which are profit oriented cannot use pay-what-you-can-model since they are not charity establishment.

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Which labor market strategy is an organization most likely to pursue if it is experiencing a shortage of funds or has a sufficient number of workers, or if unemployment rates are high

Answers

Answer:

First quartile labor market strategy

Explanation:

In the case when the organization wants to pursue when the organization is experiencing a funds shortage or has the enought number of workers or the rates of the unemployment is quite high

So this situation represents the first quartile labor market strategy

hence, the same is to be considered

Therefore the above is the answer

If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________

Answers

Answer:

If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________

$7,873.83

Explanation:

a) Data:

Annual investment = $1,600

Interest rate = 14%

Number of period = 4 years

b) Calculations, using an online finance calculator:

FV (Future Value) $7,873.83

PV (Present Value) $4,661.94

N (Number of Periods) 4.000

I/Y (Interest Rate) 14.000%

PMT (Periodic Payment) $1,600.00

Starting Investment $0.00

Total Principal $6,400.00

Total Interest $1,473.83

c) The investment of $1,600 at the end of every year for fours will grow to $7,873.83 with the principal amount of $6,400 ($1,600 * 4) plus compounded interest of $1,473.83.

As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?
Question 4 options:

Every month

Every 6 months

Every 12 months

Every 18 months

Answers

Answer:

12 months

Explanation:

The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that  12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.

After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.

Answer:

Every 12 months is incorrect on the test

Explanation:

so Every 6 months should be the correct answer

Data from Fontecchio Corporation's most recent balance sheet appear below:
Cash $ 37,000
Marketable securities $ 39,000
Accounts receivable $ 97,600
Inventory $ 77,000
Prepaid expenses $ 32,000
Current liabilities $ 248,000
The corporation's acid-test ratio is closest to:_______
a. 0.56
b. 0.37
c. 0.19
d. 0.35

Answers

Answer:

the acid test ratio is 0.7 times

Explanation:

The computation of the acid test ratio is shown below;

Acid test ratio is

= Quick assets ÷ current liabilities

= (Cash + marketable securities + account receivable) ÷ current liabilities

= ($37,000 + $39,000 + $97,600) ÷ ($248,000)

= 0.7

Hence, the acid test ratio is 0.7 times

This is the answer but the same is not provided in the given options

A price at which the demanded quantity is equal to the produced quantity of the product is called the

Answers

A price at which the demanded quantity is equal to the produced quantity of the product is called the equilibrium price.

What is the equilibrium price?

Equilibrium is the point at which the quantity demanded is equal to the quantity supplied. The price at which equilibrium occurs is known as equilibrium price.

When shown a demand-supply graph, the equilibrium point is where the demand curve would cross the supply curve. At the area above the equilibrium point, there would be a surplus. This is because the quantity demanded would be less than the quantity supplied. At the area below the equilibrium point, there would be a scarcity. This is because the quantity demanded would be greater than the quantity supplied.

For example:

Price  Quantity demanded  Quantity supplied

12                100                           200

10                 150                            150

8                     200                         100

The equilibrium price is 10.

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Which of the following conditions would prevent an ironworker from doing the job?


claustrophobia

presbyopia

muscle aches

vertigo

Answers

Answer:

Muscle A

Explanation:

Well they require to build bridges or roads like reinforce it. So if a worker had muscle aches then it would be a pain to lift up big chunks of metal steel etc. Pardon me if I'm wrong..

Answer:

vertigo

Explanation:

ironworkers build structures for things like bridges and work at great heights. vertigo is a sensation of loss of balance that can happen from looking down from high heights or an ear disease.

Which franchise model legally obligates a franchisee to replicate all aspects of the franchisor’s business?


In case of a _____________________ franchise, the franchisee is contractually bound to replicate all aspects of the franchisor’s business.

Answers

Answer:

Business format

Explanation:

plato

How would you handle the situation if you were Thomas Green? What strategies and methods would you use (Discuss in specific context of the Power and Conflict lecture)

Answers

Who is Thomas Green???

Maria Cantu was a special education teacher under a one-year contract with the San Benito School district for the 1990–1991 school year. On Saturday, August 18, just weeks before fall-term classes were to begin, she hand delivered a letter of resignation to her supervisor. Late Monday afternoon the superintendent put in the mail a properly stamped and addressed letter to Cantu accepting her offer of resignation. The next morning at 8:00, before the superintendent’s letter reached her, Cantu hand delivered a letter withdrawing her resignation. The superintendent refused to recognize the attempted rescission of the resignation. Decide. [Cantu v. Central Education Agency, 884 S.W.2d 563 (Tex. App.)]

Answers

According to the Mailbox Rule, Cantu's resignation was deemed accepted when the mail was posted and not when she received it.

What were the facts of Cantu v. Central Education Agency?

After delivering her resignation letter, Cantu sought to rescind the resignation with another withdrawal letter.

Before the withdrawal, however, the Education Supervisor had already accepted her resignation and mailed the acceptance through the post.

The mailbox rule states that acceptance is valid when communicated through the post, at the postal point, and not when received by the recipient.

Thus, the superintendent's decision to refuse the attempted rescission of Cantu's resignation, based on the mailbox rule, is legally binding and upheld.

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If you were running the clothing or grocery store, which buying method would you prefer to use? Why? (1-4 sentences. 1.0 points)​

Answers

If I was running a clothing or grocery store, I would prefer to use a debit card or credit card, whatever form of card other than cash so it could be easier for the cashiers AND the customers to pay quick.. I would also set up an atm

Which of the following should men avoid wearing in the workplace?
OA. Bow ties
OB. Jeans
C. Sweaters
OD. Sandals

Answers

Answer:

D. Sandals

Explanation:

Sandals aren't a preferred clothing item when going into a workplace, it's more informal than the other options provided.

Which Energy career pathways work with renewable energy? Check all that apply.
Energy Conversion
Energy Generation
Energy Analysis
Energy Transmission
Energy Distribution

Answers

Answer:

2, 4, 5 :D

Explanation:

\(◕ヮ◕)/ *screeches yw* \(◕ヮ◕)/

Answer:

2,4,5 :D

Explanation:

Varughese Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $191,000. The desired ending cash balance is $40,000. The excess (deficiency) of cash available over disbursements for March will be:

Answers

Answer:

$24,000

Explanation:

Beginning Cash Balance       33,000

Budgeted Cash Receipt        182,000

Total Available Cash                                       215000

Less: Cash Disbursements                             -191,000

Total excess (deficiency) of cash available  $24,000

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