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siniylev [52]
2 years ago
13

Harpeth Valley Water District has a bond outstanding with a coupon rate of 3.63 percent and semiannual payments. The bond mature

s in 23 years, with a yield to maturity of 4.17 percent, and a par value of $5,000. What is the market price of the bond

Business
1 answer:
Butoxors [25]2 years ago
7 0

Answer:

Market price of Bond = $4603.116669 rounded off to $4603.12

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 5000 * 0.0363 * 1/2 = $90.75

Total periods (n)= 23 * 2 = 46

r = 4.17% * 1/2 = 2.085% or 0.02085

The formula to calculate the price of the bonds today is attached.

Bond Price = 90.75 * [( 1 - (1+0.02085)^-46) / 0.02085]  +  5000 / (1+0.02085)^46

Bond Price = $4603.116669 rounded off to $4603.12

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A heat integration project results in saving 5 MM Btu/h of heating utility and 14 MM Btu/h of cooling utility. The prices of hea
guapka [62]

Answer:

9.24 yr

Explanation:

The payback period refers to the amount of time it takes to recover the cost of an investment. In order to find a payback period we need to go through some calculations first  

Annual savings =  5 MM Btu/hr x 8,000 hr/yr x $4/MM Btu x 14 MM Btu/hr x  8,000 hr/yr x $7/MMBtu

Annual savings = $0.944 MM/yr

TCI = \frac{4.0 MM}{0.85}

TCI = $4.7 MM

Depreciation - Annualized fixed cost = \frac{[4.0 - 0] }{10}

Depreciation - Annualized fixed cost = $0.4 MM/yr

Total cost annualized = Annualized fixed cost + Annual operating cost

Total cost annualized = 0.4 + 0.5

Total cost annualized= 0.9 MM/yr

Annual net (after-tax) profit = Annual income - Total cost annualized x (1-Tax rate + Depreciation

Annual net (after-tax) profit = $0.944 MM/yr - $0.9 MM/yr x  1 -0.25 + $0.4 MM/yr

Annual net (after-tax) profit = 0.433MM/yr

Payback period = \frac{4.0}{0.433MM/yr}

Payback period = 9.24 yr

5 0
1 year ago
While ethical conceptions shape business law and business relationships unique to each country, business leaders must be sensiti
Triss [41]

Answer:

Sensitivity guidelines

Explanation:

Businesses choose to operate in different countries for different reasons which could include; closeness to raw materials or availability of labor force.

<em>A business leader should be aware that different countries have unique ethical expectations of businesses and must therefore </em><em>pay close attention to each country's sensitivity guidelines.</em>

5 0
2 years ago
People’s experiences can aid them in their careers. Experiences are best described as
Dmitriy789 [7]
The answer is the fourth sentence, the collection of things a person has done. Hope I could help! :D
3 0
1 year ago
Read 2 more answers
Brendan wanted to offer high-quality meals in his restaurant. His motto was "the best darn meat and potatoes for miles around."
sattari [20]

Answer:

that the winning competitive advantage is one that addresses quality and service.

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the best accurate advice to Brendan would be that the winning competitive advantage is one that addresses quality and service. This is because in order to be successful you need to cater to the customers wants and needs (such as fast food delivery, and prompt attention) as well as having a great product.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
2 years ago
Demand for a certain radial tires at a tire company is 800 units per month. Each tire costs the company $80. Ordering costs are
bekas [8.4K]

Answer:

1. 300 tires

2. 150 units

3. 32 times

4. 11.4 days

5. $2,400

6. $2,400

Explanation:

Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

Material cost remains the same whatever the the order level. The costs that vary with the change in order level are ordering cost and holding cost.

The cost incurred to for each order placed is called ordering cost and cost which incurred to hold the inventory for a specific period is called holding cost.  

EOQ =  \sqrt{\frac{2 X S X D}{H} }

EOQ = \sqrt{\frac{2 X 75 X 9600}{16} }

EOQ = 300 units

1. EOQ is the level of order That should be placed to minimize the total cost of the business. The manager should order 300 tires in each lot.

2.

Average Inventory = EOQ / 2 = 300 / 2 = 150 units

3.

Number of orders = Total yearly demand / EOQ = 9,600 / 300 = 32 times

4.

Number of days = ( EOQ / total demand ) x 365 = 300 / 9600 x 365 = 11.4 days

5.

Fixed ordering cost = Total Demand / EOQ  x $75 = (9600 / 300) x $75 = $2,400

6.

Holding cost = Average Inventory x holding cost per unit = 150 units x $16 = $2,400

Here Holding cost and ordering cost is same at EOQ level.

5 0
2 years ago
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