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OverLord2011 [107]
2 years ago
8

Orlando Builders Inc. issued a bond with a par value of $1,000, a coupon rate of 9.00% (semiannual coupon), and a yield to matur

ity of 5.80%. The bond has 19 years to maturity. What is the value of the bond?
Business
1 answer:
Rudik [331]2 years ago
7 0

Answer:

Price of bond = $1,365.54

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Orlando Builders Inc.  can be worked out as follows:  

Step 1  

PV of interest payments  

Semi annul interest payment  

= 9% × 1000 × 1/2 = 45  

Semi-annual yield = 5.80%/2 = 2.9 % per six months  

Total period to maturity (in months)  

= (2 × 19) = 38  periods  

PV of interest =  

45 × (1- (1+0.029)^(-21)/0.029)= 1028.087

Step 2  

PV of Redemption Value  

= 1000 × (1.029)^(-19×2) =337.45

Price of bond  

= 1028.08 + 337.45 =1365.54

Price of bond = $1,365.54

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hichkok12 [17]

Answer:

Question requires that you find five sentence fragments, one dangling modifier, one passive-voice sentence, and one parallelism fault.

Sentence Fragment

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  • 5. Although no clear line separates fun from profit or a hobby from a business.
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Dangling Modifier

Attempts to modify an unclear word in the sentence

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It is unclear what profits the sentence alludes to.

Passive-voice sentence

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Parallelism Fault

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5 0
2 years ago
Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to sol
Georgia [21]

Answer:

B. 6.2 DLH per unit of G2

Explanation:

Total cost per unit of G2:

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$20 = $7 + $3.60 + X

$20= $10.6

$20- $10.6

= $9.4

X = $9.4 overhead per unit of G2

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DLH per unit of G2:

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denpristay [2]

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Neko [114]

Answer:

1286

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Boat's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Boat product manager do in order to improve upon the buying criteria, and thus potentially increase demand?

Correct Answer:- Increase the promotion budget to gain greater awareness

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A factor held constant to test the relative impact of the independent variable is known as a:
PSYCHO15rus [73]
The constant in a system is the control. 
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