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ra1l [238]
2 years ago
10

Dexter Mills issued 20-year bonds one year ago at a coupon rate of 10.2 percent. The bonds make semiannual payments and have a p

ar value of $1,000. If the YTM is 8.2 percent, what is the current bond price?

Business
1 answer:
lukranit [14]2 years ago
8 0

Answer:

$1,190.93

Explanation:

In this question, we use the present value formula that is shown in the attachment. Kindly find it below:

Given that,  

Future value = $1,000

Rate of interest = 8.2%  ÷ 2 = 4.1%

NPER = (20 years - 1 years) × 2 = 38 years

PMT = $1,000 × 10.2% ÷ 2 = $51

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the current bond price is $1,190.93

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After assessing the results from a recent customer survey, top managers at Gibraltar Corporation are convinced their firm is doi
vivado [14]

Answer:

Empowerment approach is a type of approach which empowers people to do their tasks and this way they feel more confident working for the company.

Here in this question, I think that empowerment approach can be a good way to improve the responsiveness of the company because this way, it will create a sense of security in amongst the workers and they will feels confident to respond to customer needs by themselves, which in turn will ultimately lead to quick responding to the customer needs by the company. So yes, i think the answer is TRUE.

Hope this clear things up. Thank You.

4 0
1 year ago
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Which of the following does not influence the consumer when he or she is deciding whether or not to buy a product?
xxTIMURxx [149]

Answer:

weather answer on apex

Explanation:

6 0
1 year ago
Pricing objectives are derived from broader marketing objectives. Organizations using a multisegment marketing approach to marke
spin [16.1K]

Answer:

True

Explanation:

An organization that makes use of multisegment marketing approach is undoubtedly a big company that have established name for itself. This means that, the organization or company is well known and that it is an household name in the industry. Therefore, such company has the capacity of using multisegment marketing approach.

But a small company will only make use of one pricing method, this is to attract people to its products. And avoid competing with the established organizations. So, in the process, creating name for itself.

8 0
2 years ago
A company’s stock is currently selling for 28.50. Its next dividend, payable one year from now, is expected to be 0.50 per share
melisa1 [442]

Answer: $22.22

Explanation:

We can use the dividend discount model to solve for this.

The formula is,

P = D1 / r - g

Where,

D1 = the next dividend

r = the expected return

g = the growth rate.

We do not have the expected return but we can calculate for it using the old stock price and growth rate. Making it x we have,

28.5 = 0.5 / x - 0.075

28.5 (x - 0.075) = 0.5

x = 0.5 / 28.5 + 0.075

x = 0.09254385964

x = 9.25 %

Now that we have the expected return we can calculate the new stock price with the new growth rate,

P = 0.5 / 9.25% - 7%

P = 22.2222222222

P = $22.22

The new stock price is $22.22

5 0
1 year ago
Which of the following is true while making a capital investment decision?
True [87]

Answer:

b. A manager should assess the risk of the project.

Explanation:

While making a capital investment decision, a firm shall properly evaluate the capital investments , for this the manager shall access the following:

  • Required return on investment by the firm.
  • Risk associated with the project.
  • Cash flows arising from the investment.
  • Timing of the cash flows for discounting them into present value.
  • Cost associated with the project.

Therefore, correct option is :

b. A manager should assess the risk of the project.

6 0
2 years ago
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