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77julia77 [94]
2 years ago
11

Use the information for the​ question(s) below. The Sisyphean Company has a bond outstanding with a face value of​ $1000 that re

aches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is​ 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is​ 7.5%, then the price that this bond trades for will be closest​ to:
Business
2 answers:
liraira [26]2 years ago
6 0

Answer:

$1,044.57

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. We calculate the present value of both the coupon payment and the maturity payment.

According to given data

Face value of the bond is $1,000

Coupon payment = C = $1,000 x 8% = $80 annually = $40 semiannually

Number of periods = n = 15 years x 2 = 30 period

YTM =  7.5% annually = 3.75% semiannually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $40 x [ ( 1 - ( 1 + 3.75% )^-30 ) / 3.75% ] + [ $1,000 / ( 1 + 3.75% )^30 ]

Price of the Bond = $713.17 + $331.40 = $1,044.57

yulyashka [42]2 years ago
6 0

Answer:

The price of the bond will be closest $1,0445

Explanation:

Face value $1000, years to maturity 15 years , coupon rate 8% paid semi annually, YTM 80%

Semiannual

n = 15*2 = 30

coupon payments = 8%*1000/2 = $40

YTM = 7.5%/2 = 3.75%

Value of a bond is equal the present value of coupon payments and present value of face value at maturity

Bond Price = C* [1-(1+r)^-n/r] + FV/ (1+r)^n

                  = 40 * [1-(1+0.375)^-30/0.0375] + 1000/(1+0.0375)^30

                  =713.1698 +331.4033

                  = $1,044.57

     Therefore when rounding of the price of this bond is closest to $1,0445          

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Which method of analysis does not classify variables as dependent or independent?
Masja [62]

Answer:

C) cluster analysis

Explanation:

Regression analysis. The regression analysis determines the relationship between the two variables. Thus, one of these quantities (X) is given in advance(dependent) and is not random. The second value (U) is the independent and random number. The randomness of the second quantity can be explained for two reasons. First: Measuring the random number U, which depends on the number X, is associated with certain errors; second: The value of U may depend on other uncontrollable factors, in addition to being dependent on the value of the corresponding X value. In this case, we need to talk about the distribution of the random variable U against each value of the X variable.  The main purpose of the regression analysis is to build a mathematical model that takes into account the factors affecting the physical process using experimental data and evaluating its accuracy.  The least squares method is used for statistical estimation of the mathematical model's suitability to experimental data.

Discriminant analysis is a method used in statistics, pattern recognition, and machine learning to find a linear combination of attributes that define or distinguish two or more classes or events. The resulting combination can be used as a linear classifier or more often to reduce the size before classifying.  LDA is closely related to variance analysis (ANOVA) and regression analysis, which try to express a dependent variable as a linear combination of other properties or dimensions. However, while variance analysis uses qualitative independent variables and a continuous dependent variable, discriminant analysis has continuous independent variables and a qualitative dependent variable.

Cluster analysis or clustering is a problem of grouping a number of objects. In this problem, objects must be in some way more similar to those in other groups to accommodate the same clusters (clusters). One of the main problems with data transmission is a common technique used in statistical data analysis. It is also used in machine learning, pattern recognition, image analysis, data retrieval, bioinformatics, data compression and computer graphics.

One-way analysis of variance (ANOVA) is used to calculate the significance of the difference between three and more independent means in a normally distributed series. ANOVA compares the arithmetic means of three or more groups alone; ANOVA result is also significant when at least one of these comparisons is significant. To measure the significance it will have the relation to the regression analysis that's why there will be dependent and independent variables as well.

6 0
2 years ago
Read 2 more answers
In 2005, Anthara Inc. acquired Sathya Inc. for $1,200 million when the fair value of net assets (assets minus liabilities) of Sa
tatiyna

Answer:

$20 million

Explanation:

Data provided in the question:

Book value of assets in 2005 = $1,200 million

Fair value of assets in 2005 = $955 million

Book value of assets in 2006 = $720 million

Fair value of assets in 2006 = $700 million

Now,

Impairment Loss = Fair value - Carrying value of Net assets

or

Impairment Loss

= Fair value of assets in 2006 - book value of assets in 2006

= $700 million - $720 million

= - $20 million                [ Here, the negative sign means a loss]

Hence,

Impairment loss of $20 million

6 0
2 years ago
Last year, Nikkola Company had net sales of $2,299,500,000 and cost of goods sold of $1,755,000,000. Nikkola had the following b
viktelen [127]

Answer:

Average receivables = $157,500,000

Explanation:

<em>Account receivable represent the amount of credit made by a business which remain uncollected as at the reporting date. In other words, they represent the amount that customers are owing the business in respect of credit sales.</em>

Average account receivables

=(opening balance + closing balance)/2

=( $142,650,000 + $172,350,000)/2

= 157,500,000.

6 0
2 years ago
Presented here is basic financial information (in millions) from the annual reports of Nike and Adidas.
Zinaida [17]

Answer and Explanation:

Nike

$18,627÷ ($2,494.7a+ $2,795.3b)/2

$18,627÷$2,645 = 7.0 times

Adidas

$10,299÷$1,415c+ $1,459d)/2

10,299÷$1 437= 7.2 times

2,566.2 – 71.5

b2,873.7 – 78.4

c1,527 – 112

d1,570 – 111

Average collection period

Nike

365÷7.0= 52.1 days

Adidas

365÷7.2

= 50.7 days

Therefore Adidas's accounts receivable turnover was about 3% higher [(7.2 – 7.0) ÷7.0] than that of Nike's, which simply means that Adidas was slightly more efficient than Nike in turning accounts receivable into cash.

8 0
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cestrela7 [59]
On the off chance that an American organization has a solid female nearness at that point there might be troubles because of the limitation puts on ladies in Saudi culture. Additionally, the Saudi predisposition against what they see as modest work could cause issues if an American organization does not comprehend it. Since American organizations have a tendency to advance construct more in light of experience it could cause issues that the Saudi depend more on family and individual associations
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