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1 year ago

11

ABC Co. issued 1 million 6 percent annual coupon bonds that mature in 10 years. The face value is $1,000 per bond. What are the

expected cash flows from one of these bonds?

1 answer:

Leya [2.2K]1 year ago

4 0

Answer:

Explanation:

The expected cash flows from one of these bonds are:

- $60 in interest at the end of each year for 10 years, and

- $1,000 repayment of principal at the end of 10 years.

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Assume that the demand for tuna in a small coastal town is given by p = 400,000 q1.5 , where q is the number of pounds of tuna t

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