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Romashka-Z-Leto [24]
2 years ago
8

The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A c

lean price of $1,049 and the par value is $1,000. What is the invoice price
Business
1 answer:
Kipish [7]2 years ago
3 0

Answer:

The invoice price for the bond is $1,060.38

Explanation:

Given the following:

PV= Par value = $1,000 ,

CV= Clean Price = $1,049

Coupon Rate per annum = 6.83%

To calculate the Semiannual Coupon Rate= Coupon Rate per annum/2= 3.415%

To calculate Semiannual Coupon= Semiannual Coupon Rate*PV

= 3.415% * $1,000  = $34.15

With an interest accured over 2 months, we calculate it thus:

Accrued Interest = $34.15 * 2/6 = $11.38

To calculate Invoice price:

Invoice Price = CP + Accrued Interest

Invoice Price = $1,049.00 + $11.38

Invoice Price = $1,060.38

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Catherine has been managing her company for a couple of years. She now plans to expand her business by bringing in fresh funding
horsena [70]

Answer:

  • News report on website and social media channels.
  • Quarterly earnings call.
  • Annual General meeting.

Explanation:

As there are no options available, I listed three ways in order of ease of implementation.

Catherine could include the news in a news report or newsletter and post it on the company website and their social media platforms to ensure that as many of their shareholders as possible read it. This is the easiest method mentioned and can be done as soon as possible.

Catherine can also update the shareholders during Quarterly Earnings calls which is a webcast or teleconference where she will update shareholders on the happenings in the company. As this happens quarterly, Catherine may have to wait some time to use it so it is second in ease of use.

Catherine could also wait till the Annual General Meeting of the shareholders to do so but this could take quite a long time.

5 0
2 years ago
Which statement best describes one way businesses participate in the
likoan [24]

Answer:

C. Businesses create goods for product markets to sell.

Explanation:

8 0
2 years ago
Read 2 more answers
Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the exp
cricket20 [7]

Answer:

P14 = $55.69545045394  rounded off to  $55.70

Explanation:

The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,

P0 = D1 / (r - g)

Where,

  • D1 is the dividend expected in Year 1 or next year
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362  rounded off to  $1.67

Now using the equation for Price as provided by the DDM model,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394  rounded off to $55.70

6 0
2 years ago
The order of presentation of activities on the statement of cash flows is
Rufina [12.5K]

Answer:

Operating activities

Investing activities

Financing activities

Explanation:

In a cash flow statement, the activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.

The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.

The investing activities include cash flows from the disposal and purchase of assets etc

The financing activities includes cash flows from the disposal and sale of shares etc.

The net cash flows from these activities is the netted off the cash balance at the beginning of the period to get the cash balance at the end of the period.

Hence the order of presentation of activities on the statement of cash flows is

Operating activities

Investing activities

Financing activities

6 0
2 years ago
Bridgette went to the gap ready to buy a new shirt, but was not sure which color or style she wanted. the sales representative,
dmitriy555 [2]

The answer in the space provided is sales presentation. In this stage of selling process, it is where a sales representative tries to determine which the buyers wants and he or she would likely present products that would make the buyers think or to have a thought of buying the product that has been offered down to him or her.

6 0
2 years ago
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