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lubasha [3.4K]
2 years ago
14

You paid $713 last year for a zero-coupon bond that promised to pay you $1,000 at the end of 5 years. Rather than hold it for th

e remaining four years, you have decided to sell it today. The prevailing effective annual interest rate is 9%. To the nearest dollar, what price do you expect to get for your bond?
Business
1 answer:
andreyandreev [35.5K]2 years ago
8 0

Answer:

The bond today will be valued at 708.4252

Explanation:

The price for the bond will be the present value of 1,000 at the current market rate of 9%

We will use the present value of a lump sum to calculate this:

\frac{Maturity}{(1 + rate)^{time} } = PV

Maturity 1,000 dollars

time 4 years

rate         9% = 9/100 = 0.09

\frac{1000}{(1 + 0.09)^{4} } = PV

PV       $708.4252

This will be the expected market value for the bond.

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Soap Company manufactures soap X and soap Y and can sell all it can make of either. Hours available to produce the products are
Nastasia [14]

Answer:

It would take 162 minutes to make one unit of product X.

Explanation:

Giving the following information:

Hours available to produce the products are the constrained resources.

Soap could reduce the processing time for X by 10 percent.

X Y

Sales Price $20 $25

Variable Cost 14 15

Hours needed to process 3 5

<u>First, we need to determine the number of minutes required to make one unit of Product X under the new method:</u>

Number of minutes required= (3*60)*0.9= 162 minutes.

It would take 162 minutes to make one unit of product X.

B) False. The contribution margin per hour of Product B is higher than product Y.

C) False. The contribution margin per hour of $2 was before the improvement in product X.

D) False. Product Y has a higher contribution margin per unit but lower compared to the contribution margin per hour.

6 0
2 years ago
According to Herzberg, when ________ are adequate, people won't be dissatisfied, but they will also not be satisfied. motivation
Anastasy [175]

Answer:

The correct answer is letter "B": hygiene factors.

Explanation:

According to American psychologist Frederick Herzberg (1923-2000) in his Motivation-Hygiene Theory -<em>also known as Two Factor Theory</em>- some factors lead to individuals' satisfaction and dissatisfaction at work. Achievement, recognition, and growth are examples of factors that lead to satisfaction and policies, supervision, salaries or security influence dissatisfaction.

Though, <em>solving problems related to dissatisfaction will not make employees satisfied. Herzberg concluded that the opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no dissatisfaction.</em>

6 0
2 years ago
Suppose you and a classmate are playing a game where your classmate proposes a division of​ $1.00. ​ Then, you either accept or
pochemuha

Answer: The correct answers are "A. Accept" and "$ 0.01".

Explanation: Given that we talk about optimal strategy when maximizing the expected profit by the player:

In the first case It is convenient to accept the proposal and keep $ 0.12, instead of rejecting it and running out of nothing.

And in the second case it is convenient to give the classmate as little as possible so that he accepts and we have a greater profit.

4 0
2 years ago
What will you use for banca/boat to move​
Serggg [28]

Answer:

a paddle

Explanation:

Using a "paddle" is very important in order to move/propel a boat. Paddling creates a force which goes against the water. This force is faced by an <u>opposite force</u> that is<em> equal </em>and that which<em> allows the boat to move forward</em>.

So as you push the water asides, the boat accelerates. Such technique is deemed efficient when using the boat. Not following the proper technique will not move the boat.

5 0
2 years ago
Stone and brick are substitutes in home construction. consider the market for bricks depicted below. suppose the price of stone
sp2606 [1]

Answer: Price of bricks will increase

Explanation: Since Stone and bricks are substitutes to each other, a rise in the price of stone due to the new regulation will lead to a rise in the demand for bricks. Since bricks are now relatively cheaper as compared to stones after the price rise, people will use more bricks than stones. This will shift the demand for bricks to the right driving upwards the price for bricks and also increase the quantity of bricks being sold in the market.  

8 0
2 years ago
Read 2 more answers
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