guggenheim, incorporated, has a bond outstanding with a coupon rate of 7.9 percent and annual payments. the yield to maturity is 9.1 percent and the bond matures in 15 years. what is the market price if the bond has a par value of $2,000?
Answers
Gugenheim, Inc., has a bond outstanding with a coupon rate of 6.7 percent and annual payments. The yield to maturity is 7.9 percent and the bond matures in 23 years. The market price of the bond is $1,784.04, which means it is trading at a premium to its par value of $2,000.
To calculate the market price of a bond, we need to use the present value formula. In this case, the bond has a coupon rate of 6.7 percent and annual payments, which means it pays $134 ($2,000 x 6.7%) per year. The bond matures in 23 years, and the yield to maturity is 7.9 percent.
To calculate the present value of the bond's future cash flows, we can use the following formula:
PV = C * (1 - (1 + r)^-n) / r + FV / (1 + r)^n
Where:
PV = present value
C = annual coupon payment
r = yield to maturity
n = a number of periods
FV = face value or par value
Substituting the values we have:
PV = $134 * (1 - (1 + 0.079)^-23) / 0.079 + $2,000 / (1 + 0.079)^23
PV = $1,784.04
Therefore, the market price of the bond is $1,784.04, which means it is trading at a premium to its par value of $2,000. Option B is the correct answer.
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Related Questions
Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answers
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
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When an employer offers a wellness program to its employees, the health insurance premiums the employer pays on behalf of the employees are likely to?
Answers
The health insurance premiums that an employer pays on behalf of its employees are likely to decrease when the employer offers a wellness program to its staff.
As a proactive measure to help them stay healthy overall and prevent sickness, employers provide access to wellness programs for their employees. This can be facilitated by education, communication, and a supportive workplace environment.
When buying an insurance policy, a person, business, or organization must pay an insurance premium. The cost of the insurance premium varies based on the payee and is influenced by a variety of factors. For instance, you must pay your insurer the $800 annual auto insurance payment in order to keep your policy in effect.
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an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
which significant event triggered the rapid and continuing growth in the demand for higher education in texas?
Answers
The end of World War II triggered the rapid and continuing growth in the demand for higher education in Texas.
In Texas, higher education is provided by a number of public and private institutions. The Texas Higher Education Coordinating Board is the state agency responsible for coordinating higher education in Texas.
The Coordinating Board oversees the state's public university system, which includes nine universities and two health-related institutions. The Board is committed to ensuring that all Texans have access to the resources and opportunities they need to succeed in higher education
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to make sure people think about your brand in decision-making moments, what marketing objective should you use for your video campaign?
Answers
marketing goal should you choose for your video campaign Organizations need a video marketing plan to ensure that people think about their brand at decision-making times.
What exactly do we mean by decision-making?Making decisions involves identifying a course of action, acquiring data, and weighing potential answers. By gathering pertinent data and outlining options, a walk decision-making process can assist you in making more careful, considered decisions.
Why is making decisions crucial?Making decisions is crucial to achieving the corporate goals and objectives within the allotted time and money. It looks for the best option, makes good use of the available resources, and is well-liked by the workers. As a result, it is possible to accomplish organization goals or objectives in accordance with the desired outcome.
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How does customer demand affect imports and exports?
Answers
Answer:
A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.
Explanation:
A wood table from King Hickory Furniture must have legs between 30 and 40 centimeters thick, or else the legs must be re-made. Factory research shows that actual thickness of table legs are uniformly distributed between 25 and 55 centimeters. What is the mean thickness table legs? (Round to the hundredths place) A. 35 B. 70 C. 40 D. 80
Answers
If actual thickness of table legs are uniformly distributed between 25 and 55 centimeters, the mean thickness of the table legs is 35 centimeters. The correct answer is option A.
To find the mean thickness of table legs, we need to calculate the average value of the uniformly distributed random variable within the given range.
The lower bound of the range for the thickness of table legs is 30 centimeters, and the upper bound is 40 centimeters. The uniform distribution is described by the probability density function (PDF), which is a constant within the range and zero outside the range.
The mean of a uniform distribution is given by the average of the lower and upper bounds:
Mean = (Lower bound + Upper bound) / 2
Mean = (30 + 40) / 2
Mean = 70 / 2
Mean = 35
Therefore, the mean thickness of the table legs is 35 centimeters.
The correct answer is option A.
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Exercise 20-17 Preparation of cash budgets (for three periods) LO P2 Kayak Co. Budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 525,000 $ 475,000 February 400,000 350,000 March 450,000 525,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. )
Answers
The preparation of the cash budgets for the first three months of next year for Kayak Co. is as follows:
January February March
Beginning cash balance $30,000 $30,000 $69,294
Cash receipts 525,000 400,000 450,000
Total cash available $555,000 $430,000 $519,294
Cash disbursements 475,000 350,000 525,000
Ending cash balance $80,000 $80,000 ($5,706)
Required minimum balance 30,000 30,000 30,000
Available for Loan Payment 50,000 50,000 ($36,000)
Loan Interest & Principal Payment:
Interest repayment $600 $106
Loan:
Beginning balance $60,000 $10,600
Loan repayment ($49,400) ($10,600)
Ending balance $10,600 $0
Data and Calculations:Month Cash Receipts Cash Disbursements
January $ 525,000 $ 475,000
February 400,000 350,000
March 450,000 525,000
Minimum required cash balance = $30,000 per month-end
Loan limit = $150,000
Monthly interest rate = 1%
Interest payment and principal repayment = last day of each month
Interest computation = beginning balance
Beginning cash balance = $30,000
Beginning loan balance = $60,000
The beginning cash balance of March is $69,294 ($80,000 - $106 - $10,600)
Thus, at the end of March, Kayak Co. needs to borrow $36,000.
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There's a lot to know before you use credit for the
first time. First and most obvious, you have to pay
back what you borrow. Every month you'll have a
due. This is the smallest amount
Select One
you can pay without accruing fees. Because of
interest, you'll have to pay back more than the
Select One
you initially borrowed. You should
also know that there's a ceiling for how much you can
borrow at once. This is called your
Select One
It can be a lot to juggle what
you're spending and what you owe, so a budgeting
method like Select One
I can help you get a
handle on everything.
Answers
Note that in the above credit scenario, this is the smallest amount you can pay without accruing fees.
What are the fees related to credit?It is the consumer's overall credit cost represented as a percentage of the total credit amount on a yearly basis.
Take note that credit improves your financial flow. It's handy since you don't have to spend a lot of money.
It is extremely useful when you need money for an emergency such as illness, property loss, or death. When you run out of funds, it allows you to buy products that are immediately required.
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A few simple business questions, 50 points
Answers
Answer: Human resource Management
Explanation: In a buisness people wouldn't be able to mantain employess and recruit new ones without HRM.
why is maximum number of person in partnership business mentioned in companies act and not in partnership act
Answers
The Companies Act and the Partnership Act are two different laws that govern different types of businesses.
The companies act and partnership act-The Companies Act governs companies, which are separate legal entities from their owners, while the Partnership Act governs partnerships, which are not separate legal entities from their owners.
The maximum number of persons in a partnership business is not mentioned in the Partnership Act because there is no limit to the number of partners a partnership can have. However, the Companies Act limits the number of members in certain types of companies, such as private companies, to a maximum of 200 members. This is because companies are separate legal entities and the law seeks to regulate their operations to ensure that they operate in a manner that is fair and transparent to all members.
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explain the importance of an office for the successful functioning of organisation ? (Long question answer)
Answers
Answer:
An office is a location the management of a business can use for the planning, organization, control, direct, and recruit staffs for a business. An office is the place information records are kept and it is used as the channel through which the business makes communication with other businesses, individuals and the public.
The smooth operations of an organization requires the availability of an office as it is the place the business activities are performed
An office is as important to an organization as the brain is to the body of a living organism
Explanation:
Merchandise is purchased for $6,000 on September 2 subject to terms of 1/10, n/30, FOB destination. Freight costs paid by the seller totaled $131. What is the cost of the merchandise if paid on September 12, assuming the discount is taken
Answers
Answer:
Given:
invoice price of $6,000 is purchased on September 2 subject to terms of 2/10, n/30, fob destination.
freight costs paid by the seller totaled $200
Payment is made on September 12.
The payment is net of discount because September 12 is still within the discount term of 10 days.
6,000 x 2% = 120
6,000 - 120 = 5,880
The required payment if paid on September 12 is 5,880.
The freight cost paid by the seller is recognized by the seller as an expense. The buyer does not need to refund said freight cost because the ownership of the merchandise has not yet been transferred to the buyer. FOB destination means that the transfer of ownership from seller to buyer happens when the merchandise arrives at its destination or buyers address.
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Crowding out occurs when investment declines because a budget:.
Answers
Because a budget deficit makes interest rates fall, the investment decline and makes a crowding out.
What is a Crowding out?Crowding out refers to when personal consumption and investments of business reduced because of increases in government spending
For Instance, when the government raises its spending and fund part of sector of finance, this will increase the demand for money in the economy.
In conclusion, the crowding out occurs when an investment declines because a budget deficit makes interest rates fall.
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1) what is the Ticker symbol for each company?
2) If you bought $10,000 of each how many shares would have of each stock?
Answers
A market condition featuring one producer controlling the entire supply of a
good is called
O A. an oligopoly
B. a monopoly
O c. monopolistic competition
D. pure competition
Answers
Answer:
B. A monopoly.
Explanation:
A market condition featuring one producer controlling the entire supply of a good is called a monopoly. Therefore, option B is correct.
What is a monopoly?A monopoly market is a market condition where there is only one supplier or producer of a particular good or service. In other words, a monopoly exists when a single company or entity has exclusive control over the production and distribution of a certain product or service.
In a monopoly market, the single seller has significant market power and can exert control over the price and quantity of the product. Since there are no close substitutes available in the market, consumers have no choice but to pay the price set by the monopolist. This can lead to higher prices and reduced consumer surplus.
Monopolies can arise due to various reasons, including legal barriers, such as patents or licenses, economies of scale, and control over essential resources. Governments sometimes regulate or break up monopolies to prevent them from abusing their market power and to promote competition in the market.
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In the hierarchy of effects, the first stage is known as
Multiple Choice
a purchase.
b interest.
c awareness.
d trial.
e introduction.
Answers
Alice surveys are great ways to identify needs, but the information is only available for Knox county, which limits the usefulness. True or False
Answers
It is true that alice surveys are great ways to identify needs, but the information is only available for Knox county, which limits the usefulness.
Alice surveys are a useful tool to gather information on the needs of a specific community. These surveys are typically designed to gather information on topics such as housing, education, healthcare, and economic security. By analyzing the data collected from these surveys, organizations can develop programs and services that address the identified needs of the community.
However, the usefulness of the Alice surveys is limited by the fact that the information is only available for Knox county. This means that the data collected from the surveys may not be representative of other communities or regions, and therefore may not be useful for organizations working outside of Knox county.
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(a) An amount of $100 is deposited into an account at the end of the 1st year, after which payments of $200, $400, $600,... are deposited at the end of every 2 years, that is, there will be a payment of $200 at time 3, a payment of $400 at time 5, and so on. The last payment will be made at the end of the 15th year. Determine the present value if the annual effective rate of interest is 2%. Round your answer to the nearest cent. [7] (b) An annuity-due consists of a first payment of $100, with subsequent payments increased by 7% over the previous one until the 10th payment, after which subsequent payments are level at the amount of the 10th payment. If the effective rate of interest is 7% per payment period, determine the present value of this annuity-due with 20 payments. Round your answer to the nearest cent
Answers
The present value of the series of uneven cash flows and the annuity-due with increasing and level payments can be calculated by discounting each cash flow back to the present using the respective effective rates of interest.
(a) To calculate the present value of the series of uneven cash flows, we need to discount each cash flow back to the present using the given annual effective rate of interest of 2%. The first cash flow of $100 at the end of the 1st year does not need to be discounted since it is already at the present time. The subsequent cash flows of $200, $400, $600, and so on, occur every 2 years. We can treat these cash flows as a series of regular cash flows of $200 at the end of every 2 years. We can use the present value of an ordinary annuity formula to calculate the present value of these cash flows:
Present Value = \($100 + $200/(1 + r)^2 + $200/(1 + r)^4 + $200/(1 + r)^6 + ... + $200/(1 + r)^30\)
where r is the annual effective rate of interest (2% in this case). By substituting the values and calculating the sum, we can find the present value of this series of cash flows.
(b) For the annuity-due with increasing payments followed by level payments, we need to calculate the present value of each payment and then sum them up to find the total present value. The first payment is $100 and subsequent payments increase by 7% over the previous one until the 10th payment. After the 10th payment, subsequent payments remain constant at the amount of the 10th payment. We can use the present value of an annuity-due formula to calculate the present value of these cash flows:
Present Value = \($100/(1 + r) + ($100 * (1 + g))/(1 + r)^2 + ($100 * (1 + g)^2)/(1 + r)^3 + ... + ($100 * (1 + g)^10)/(1 + r)^11 + ($100 * (1 + g)^10)/(1 + r)^12 + ... + ($100 * (1 + g)^10)/(1 + r)^30\)
where r is the effective rate of interest (7% per payment period) and g is the growth rate of subsequent payments (7% in this case). By substituting the values and calculating the sum, we can find the present value of this annuity-due with 20 payments.
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Drag the tiles to the correct boxes to complete the pairs.
Match the different resources to the scenarios where they are used.
natural resources
human resources
man-made resources
entrepreneurship
A power plant uses an Industrialdesign power generator to generate large-scale
electricity for the neighborhood.
A power plant uses coal to heat water and then converts it into steam, which
then turns the turbines.
>
A power plant is set up by a group of industrialists as they come together to
solve the power crisis in their nelghborhood.
A power plant employs local workers who work in shifts to keep the plant
running for most of the day.
Answers
Answer:
1. Man-made
2. natural resources
3. entrepreneurship
4. Human resources
Explanation:
Natural resources are those which are present in the environment and are limited in number.
The man-made resources are those where a power generator is used to initiate the electricity on large scale.The natural resources are those where the water is heated from coal and then converting it to steam for running the turbines.The entrepreneurship is represented when the industrialists come together to solve the power crisis of their own neighborhood.The human resources are those where the workers are working in shifts to keep their plants in running condition.Therefore, the given resources are matched with the scenarios in which they are used.
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Mothers often rely more heavily on support people like partners, doulas, and nurses during active labor.
Question 23 options:
True
False
Answers
The statement that Mothers often rely more heavily on support people like partners, doulas, and nurses during active labor is true.
What do take place during active labor?It should be noted that During active labor, the cervix will dilate from 6 centimeters (cm) to 10 cm in this period the contractions will become stronger, closer together and regular and the mother will be going through some pain in the process ansd the legs might cramp, and you might feel nauseated.and one might feel your water break .
In conclusion, during the labor the contractions get stronger, longer and more painful and the mother may feel pressure in your lower back, and your legs may cramp and she may feel the urge to push, hence Mothers often rely more heavily on support people like partners.
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Give an example of a specialist external agency that a café could use to advertise for an accountant in their head office.
Answers
Answer:
A finance reporting accountant prepares periodic financial statements required for external reporting. They collect and analyze financial data, ensuring that all reporting complies with SEC and GAAP reporting regulations and guidelines. They also prepare internal reports as required.
Explanation:
Please mark Brainliest!
Determine which of the following statements about merchandise is correct.
Answers
Based on the available options and the concept of merchandise in the business world, the correct statement is that Merchandise is acquired for resale to customers.
What is Merchandise?Merchandise is a term that is used to describe the things that can be bought or sold, like the product that's for sale at your local record shop, or the commodity sold by sidewalk vendors in a big city.
Generally, there are various types of merchandise which include the following:
product, visual, retail, digital, and omnichannel.Hence, in this case, it is concluded that the correct answer is option D. "Merchandise is acquired for resale to customers."
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The available options to the question are:
A. Merchandise is acquired for use in the company, just like supplies.
B. Merchandise is considered an expense in the period it is purchased.
C. Merchandise is sold by customers.
D. Merchandise is acquired for resale to customers.
You have won a labor contract negotiation with 7.6% pay increase retroactive for six months. Write a program in C# that gets the employee's previous annual salary as initial pay (20points) and outputs the amount of retroactive pay due to the employee (20 points), the new annual salary (20 points), and the new monthly salary (20 points). Use variables (20 points) to store previous annual salary, retroactive pay, new annual salary, and new monthly salary. Sample Screen Display: Congratulations! You won an annual increase in pay as much as 7.6%. There is more! This pay raise is RETROACTIVE! (This increase will be applied to your past six pay.) Now please tell me your last year's annual salary: 54900 Based on your last year's annual salary of $54,900 Your six months' retroactive pay is: $2,086.20 Your new annual salary will be: $59,072.40 And your new monthly salary will be: $4,022.70
Answers
Here is the solution to the given problem:Solution:using System; class Program { static void Main(string[] args) { Console.WriteLine("Congratulations! You won an annual increase in pay as much as 7.6%. There is more! This pay raise is RETROACTIVE!"); Console.Write("Now please tell me your last year's annual salary: $"); double initialSalary = Convert.ToDouble(Console.ReadLine()); double retroPay = initialSalary * 0.076 / 2; double newAnnualSalary = initialSalary + initialSalary * 0.076; double newMonthlySalary = newAnnualSalary / 12; Console.WriteLine("\nBased on your last year's annual salary of ${0:0.00}", initialSalary); Console.WriteLine("Your six months' retroactive pay is: ${0:0.00}", retroPay); Console.WriteLine("Your new annual salary will be: ${0:0.00}", newAnnualSalary); Console.WriteLine("And your new monthly salary will be: ${0:0.00}", newMonthlySalary); Console.ReadLine(); } }Explanation:The given program is written in C# language that is used to calculate the retroactive pay, new annual salary, and new monthly salary of an employee.
The program first reads the initial annual salary of an employee using Console.ReadLine() method and stores it in a variable called initialSalary.The retroactive pay is calculated by multiplying the initialSalary with 0.076 and then divided by 2. The result is stored in a variable called retroPay.The new annual salary is calculated by adding initialSalary with the multiplication of initialSalary with 0.076. The result is stored in a variable called newAnnualSalary.The new monthly salary is calculated by dividing newAnnualSalary with 12. The result is stored in a variable called newMonthlySalary.Finally, the results are displayed using Console.WriteLine() method along with string literals and variables.
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Why is it challenging to match your investing decisions with how the stock market is performing?
It is hard to predict trends, and trends can only be identified once they’ve already happened
The stock market is typically in a BEAR market for a specific period of time
You have to invest large amounts of money to have your decisions match the performance of the stock market
The stock market is typically in a BULL market for a specific period of time
Answers
It can be difficult to match your investment choices with how the stock market is doing because trends are difficult to forecast and only become apparent after they have already occurred.
Why is predicting trends in the stock market so difficult?It is challenging to predict the market since the future is inherently uncertain. Short-term traders would frequently be better served by waiting for signs that a reversal is likely to happen rather than trying to forecast when it will.
Why is investing such a difficult task?Investments entail some risks. Due to variations in investment return and principle value, shares' value at redemption may be higher or lower than when they were first bought. Success in the future cannot be anticipated solely on past success. There is no guarantee that a strategy will work.
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{20 points} HELP ASAP
What can nonprinting characters tell you? Check all that apply.
A) whether a large space was created with the spacebar or the tab key
B) whether the author misspelled any words
C) how long it took the author to create the document
D) where the author pressed the return key
Answers
Answer:
A and D
Explanation:
edge 2021
Kevin Carter Male Clothing Ltd is a chain of fashion outlets across Birmingham and the
midlands. In quarter 1 they had inflows of £540,000 across their three stores, with outflows
of £495,000. Their opening balance for the quarter was £20,000. For quarter 2 they
anticipate inflows to increase by 7.5% and outflows increase by 5%. Calculate their closing
balance for Quarter 2.
Answers
Internal audits, the use of firewalls, employee disciplinary processes, training, and other practices are a few examples of internal controls. Threats that could hurt the business and lead to asset loss are a reality for all enterprises.
What Are Preventive Internal Controls?Internal controls that prevent negative events from happening are implemented for the reason that their name suggests. For instance, numerous programs include built-in safeguards to prevent the entry of inaccurate data.The most effective controls are those that prevent mistakes from happening in the first place. Even better are automated preventative controls, which simplify audits and do away with the need for human intervention.An example of a preventative internal control
Internal controls to prevent unfavorable outcomes include training programs, drug testing, firewalls, computer and server backups, and more.The Complete Question.
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Sarah grows rosebushes that she decided to sell online. She ships them using an airline. If a rosebush dies, to whom is the carrier liable?
It is liable to both the principal and the buyer.
It is only liable to Sarah, the principal.
It is only liable to the buyer.
It has no liability.
Answers
If the rosebush dies while in transit, the carrier will be liable to Sarah, the principal.
Who is the carrier liable to?The carrier will be liable to the person that it engaged in a business transaction to ship goods to another person.In other words, the carrier will be liable to Sarah because it was Sarah that they got into business with. Sarah will then be liable to the buyer for the death of the rosebush.
In conclusion, option B is correct.
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Answer:
The answer is B
Explanation:
Got it right on edge.
These are some of my ideas, Hope u like
Answers
Answer:
yo i love it
Explanation:
if it is >1.0, then: Select one: O a higher cost alternative is selected. O b. we eliminate the challenger. Oc. we select the defender to compete with the next higher cost alternative. Od. lower cost alternative is selected.
Answers
If it is >1.0, then: a higher cost alternative is selected.In situations where the value exceeds 1.0, it is generally preferred to choose the higher cost alternative.
When a value is greater than 1.0, it means that the cost of the alternative is higher than the reference value or threshold. In this context, the selection criterion favors higher cost alternatives. This could be due to various factors such as superior quality, additional features, or enhanced performance offered by the higher cost option.
For example, if we are comparing different smartphone models based on their cost-effectiveness, and the value of a specific metric (e.g., performance-to-price ratio) is found to be greater than 1.0, it indicates that the alternative with a higher cost provides better performance or features relative to its price. Consequently, the decision would be to select the higher cost alternative.
In situations where the value exceeds 1.0, it is generally preferred to choose the higher cost alternative. This implies that the higher cost option is deemed more valuable or advantageous based on the specific criteria being considered.
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