Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 18 percent annual interest. The current yield to maturity on such bonds in the market is 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Compute the price of the bonds for these maturity dates: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)
a. 25 years
b. 18 years
c. 1 year
Answers
a. The price of the bond for a maturity of 25 years is approximately $190.47.
b. The price of the bond for a maturity of 18 years is approximately $291.25.c.
price of the bond for a maturity of 1 year is approximately $643.22.
To calculate the price of a bond, we can use the formula for the present value of a bond's cash flows:
Bond Price = (Coupon Payment / (1 + Yield to Maturity)¹) + (Coupon Payment / (1 + Yield to Maturity)²) + ... + (Coupon Payment + Par Value / (1 + Yield to Maturity)ⁿ)
Given:Par value (face value) = $1,000
Annual interest rate (coupon rate) = 18%Yield to maturity = 12%
Number of years (maturity) = various
a. For a maturity of 25 years:Using the formula, we calculate the bond price:
Bond Price = (180 / (1 + 0.12)¹) + (180 / (1 + 0.12)²) + ... + (180 / (1 + 0.12)²⁵) + (1,000 / (1 + 0.12)²⁵)Bond Price ≈ $190.47
b. For a maturity of 18 years:
Using the formula, we calculate the bond price:Bond Price = (180 / (1 + 0.12)¹) + (180 / (1 + 0.12)²) + ... + (180 / (1 + 0.12)¹⁸) + (1,000 / (1 + 0.12)¹⁸)
Bond Price ≈ $291.25
c. For a maturity of 1 year:Using the formula, we calculate the bond price:
Bond Price = (180 / (1 + 0.12)¹) + (1,000 / (1 + 0.12)¹)Bond Price ≈ $643.22
Please note that these calculations are approximations. For precise calculations, it is recommended to use financial calculators or spreadsheet functions designed for bond pricing calculations.
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Related Questions
Which of the following is an example of the ethical issue of gift-giving in the
health care industry?
Answers
Answer:
Patient Privacy and Confidentiality. The protection of private patient information is one of the most important ethical and legal issues in the field of healthcare. ...
Transmission of Diseases. ...
Relationships. ...
End-of-Life Issues
etc.
Answer:
A doctor prescribes medication to patients after the pharmaceutical company present tickets to a basketball game to the doctor.
Explanation:
good luck with your homework <3
Customer value depends on the product’s cost versus the perceived ________ the buyer received
Answers
Customer value depends on the product's cost versus the perceived benefits the buyer received.
Value is the satisfaction that a consumer derives from a product or service and is the difference between the perceived benefits and the perceived costs of the item.In other words, customer value is the difference between the total value that a customer perceives from a product and the total cost of the product. If the perceived benefits are greater than the cost, the customer will perceive the product as having high value.
On the other hand, if the cost is greater than the perceived benefits, the customer will perceive the product as having low value. Therefore, companies must strive to deliver products that offer greater perceived benefits than their cost in order to create value for their customers.
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Businesses like to keep operating costs as low as possible, so they can focus on
production and profit. One way to keep operating costs down is to keep wages
low. Many businesses pay their workers the minimum wage required by law.
Often; workers consider this unfair and feel they should be paid more than the
bare minimum for the work they do. Paying employees the minimum wage is
certainly not illegal, but is it always ethical? What do you think?*
Answers
Answer:
No I don't think it is very ethical to only be paying employees minimum wage. The cost of living keeps going up and people need to be able to afford the basic necessities of life. The prices of everyday goods like groceries and household basics keep going up making it hard for people to be able to afford them especially when they are only making minimum wage. When the product cost is higher, the company is making more profit, therefore they are able to pay their workers more. When the prices of goods and products increase, wages should increase as well.
Explanation:
most collective bargaining agreements in the united states are reached a. only after government intervention to avoid a strike. b. without a strike. c. only after a strike lasting at least a year. d. only after binding arbitration. e. only after a strike lasting at least three weeks.
Answers
Most collective bargaining agreements in the united states are reached without a strike.
A nation in North America, the United States of America is also referred to as the United States or America. It is made up of 326 Indian reservations, five significant unincorporated territories, nine Minor Outlying Islands, and 50 states. Both in terms of overall area and land area, it is the third-largest nation. The northern and southern land boundaries of the United States are shared with Canada and Mexico, respectively. Along with other countries, it shares maritime boundaries with the Bahamas, Cuba, and Russia. It is the most populated nation in the Americas and the third most populous in the world, with a population of over 331 million. The most populous metropolis and financial hub is New York City, while Washington, D.C., serves as the nation's capital.
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Underlying the dividend irrelevance theory proposed by Miller and Modigliani is their argument that the value of the firm is determined only by its basic earning power and its business risk. (True or False)
Answers
True, The foundation of Miller and Modigliani's suggested dividend irrelevance hypothesis is their claim that the firm's worth is solely decided by its fundamental earning capability and its business risk.
What is Business Risk?Business risk is the possibility that a company or organization will experience declining profits or collapse. Anything that undermines a corporation is a risk. the ability of the organization to achieve its financial goals. Business risk can result from the interaction of several factors. senior executives of a company or Leadership may on occasion create conditions that subject a corporation to greater levels of risk.
However, there are times when a firm is not the only source of danger. As a result, a business cannot completely protect itself against danger.
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Does the U.S. have a trade deficit or surplus?
Answers
Answer:
surplus
Explanation:Don't quote me on this because I might be wrong, but I think the united states has a trade surplus because of the dependence on U.S trade globally. China has a trade surplus because they have some the biggest and busiest factories and shipping outposts. Since the U.S has such a high trade level with the trade Surplus of china the U.S is also a trade surplus.
If more gas stations are built in the local area, then the supply of gasoline will decrease as a result.
Answers
The statement "If more gas stations are built in the local area, then the supply of gasoline will decrease as a result" is not accurate. In fact, the increased number of gas stations would likely lead to an increase in the supply of gasoline.
When more gas stations are built in a local area, it generally leads to an increase in the supply of gasoline. This is because each gas station is a point of distribution for gasoline, and more gas stations mean more outlets for selling gasoline. As a result, the overall supply of gasoline in the local area tends to increase.
An increase in the number of gas stations can have several effects on the supply of gasoline. Firstly, competition among gas stations may lead to lower prices, encouraging consumers to buy more gasoline. This increased demand can incentivize suppliers to increase their gasoline production and supply to meet the growing market demand.
Additionally, with more gas stations available, suppliers may have better access to distribution channels, allowing them to transport and deliver gasoline more efficiently. This improved distribution network can contribute to a more abundant and accessible supply of gasoline in the local area.
Therefore, contrary to the initial statement, the construction of more gas stations typically results in an increase in the supply of gasoline rather than a decrease.
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The __________ is the set of guidelines issued by the Equal Employment Opportunity Commission (EEOC) and other agencies to identify how an organization should establish a recruitment process that is free and fair. Select one: a. Uniform Commercial Code b. Equal Opportunity Legislation and Policy c. Code of Federal Regulations d. Uniform Guidelines on Employee Selection Procedures e. Equal Employment Opportunity Commission's Employer Information Report
Answers
Answer:
d. Uniform Guidelines on Employee Selection Procedures
Explanation:
Uniform Guidelines on Employee Selection Procedures is the set of guidelines and procedures that is required to be followed during the process of the recruitment process. All the necessary information and decision related to the employment are taken in consideration with this guidelines. Information like educational qualification, and work experience are evaluated under the given guidelines. Decisions of the interviews, the recruitment process and the evaluations are done by considering the guidelines.
ive been stuck on this PLEASE help-- how do I find marginal cost?
this is my assignment:
What is the marginal cost of nitrogen in our example when nitrogen is priced at 25 cents a pound vs. if it was 35 cents a pound?
Answers
Answer:
Marginal cost is calculated by dividing the change in total cost by the change in quantity. Let us say that Business A is producing 100 units at a cost of $100. The business then produces at additional 100 units at a cost of $90. So the marginal cost would be the change in total cost, which is $90.
Advocates of floating rates pointed out that Group of answer choices removal of the obligation to peg currency values would restore monetary control to central banks. imposing of the obligation to peg currency values would restore fiscal control. imposing of the obligation to peg currency values would restore monetary control to central banks. imposing of the obligation to peg currency would restore monetary control to the consumer. removing of the obligation to peg currency values would restore fiscal control.
Answers
Answer:
removal of the obligation to peg currency values would restore monetary control to central banks.
Explanation:
The Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to depository financial institutions when they're running out of money and as well as regulate their activities.
Generally, monetary policy affects the money supply in an economy, which then creates an impact on interest rates and the inflation rate.
Hence, advocates of floating rates pointed out that removal of the obligation to peg currency (setting specific fixed exchange rate) values would restore monetary control to central banks.
Erin spent $25, $36, $18, and $42 on lunch in the last four
weeks. What was her average weekly expense for lunch?
Answers
Answer:
121 weekly i hope this hepl
Question 17 of 20
Trey's bank raises the interest rate on his line of credit without providing an
explanation. Which consumer protection law has his bank violated?
Answers
Trey's bank raises the interest rate on his line of credit without providing an
explanation. The consumer protection law that his bank violated is: "The Truth in Lending Act of 1968".
What are consumer protection laws?The Truth in Lending Act of 1968 is a federal law in the United States aiming to encourage the informed use of consumer credit by requiring disclosures about its terms and prices to standardize the method in which borrowing expenses are computed and communicated.
Consumer protection laws protect consumers from faulty products and deceptive or fraudulent company activities.
It is to be noted that in the United States, a range of federal and state laws govern consumer affairs. The Federal Food, Drug, and Cosmetic Act, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Fair Credit Billing Act, and the Gramm-Leach-Bliley Act are a few examples.
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Answer:
Credit Card Accountability, Responsability, and Disclosure Act
Explanation:
Gross Domestic Product or GDP can be
a)Value of output of goods and services during one year
b) National Income
c)National Output
d)Aggregate Demand
e)All the stuff made by one country in one year
f)All of the above or any of the above
Answers
Answer:
f)All of the above or any of the above
Explanation:
GDP or gross domestic product is the aggregate of the values of goods and services produced within a country's boundaries. In calculating the value of GDP, economists consider the value of finished goods only.
GDP is calculated using the expenditure approach and the income approach. With the expenditure approach, GDP is the sum of all consumers, government, incomes, and net imports. The result is GDP and also the aggregate demand.
In the income approach, the GDP is the sum of all national incomes . In other words, GDP is equal to Sales Taxes plus Depreciation and Net Foreign Factor Income.
What is down payment with regarding to buying a house?
Answers
Did the entrepreneur(s) get a deal from at least one Shark?
Answers
Answer:
One entrepreneur struck an agreement on-air with a shark that never materialized, and another struck a bargain that the shark later backed out of.
Explanation:
using sales value at split-off, what amount of joint processing cost is allocated to product x (round to the nearest dollar)? select one: a. $3,243 b. $4,000 c. $5,500 d. $2,500
Answers
None of the options provided (a, b, c, or d) can be confirmed as the correct answer.
The sales value at split-off method is used to allocate joint processing costs to individual products based on their relative sales values at the split-off point. This method assumes that the sales values at split-off are a reasonable measure of the products' relative economic worth.
Since the question asks for the amount of joint processing cost allocated to product X, we need to determine the ratio of product X's sales value at split-off to the total sales value at split-off of all products.
Unfortunately, the information necessary to calculate the ratio of product X's sales value at split-off is not provided in the question. Without this information, we cannot determine the exact amount of joint processing cost allocated to product X.
Therefore, none of the options provided (a, b, c, or d) can be confirmed as the correct answer.
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What is an appraisal? Why is it usually included in the closing costs for buying a home?
Answers
The procedure through which a real estate evaluator attempts to discover the fair market value of a home is called a home appraisal. They are frequently used to calculate property taxes, appraisals are typically required in regions.
What is the closing cost?Additional expenses and charges that must be paid at the end of a transaction in real estate that is not included in the property's purchase price is referred to as Closing cost.
A home appraisal is employed to determine a property's worth. Lenders impose these fees in exchange for approving your loan.
Prior to comparing a home to actually acquired properties in the local housing market, licensed real estate evaluators to look at its features and state.
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Which term refers to checks that have been written but not been cashed?
Group of answer choices
direct deposit checks
outstanding checks
cancelled checks
signature checks
Answers
Answer: ill help you
Explanation:
ECO Jeans, Inc. had a mission to become the leading producer of environmentally friendly blue jeans, an emerging and in-demand category in the apparel industry. Its strategy involved leveraging a network of organic cotton farmers and suppliers of environmentally responsible synthetic materials to create a product that is durable, attractive, affordable, and 100% recyclable. However, because it did not upgrade its outdated production facilities, ECO Jeans could not assemble its products at a low-enough cost to offer the jeans at a price that was attractive to customers. ECO Jeans’ strategy failed because
Answers
Answer: it was not backed up with strategic commitments.
Explanation:
The reason why ECO Jeans’ strategy failed is because the strategy was not backed up with strategic commitments.
Strategic commitments refers to the decisions that are taken by a company which have a long-term impact on the company.
Since ECO jeans could not upgrade its outdated production facilities, the company could not assemble its products at a low-enough cost to offer the jeans at a price that was attractive to customers. This could have had a positive impact on the company for a long term.
Discuss how "The Cheesecake Factory" approaches and manages ethical issues.
Discuss a recent ethical issue involving "The Cheesecake Factory" and their management of the issue.
Answers
The Cheesecake Factory is committed to ethical business practices and approaches ethical issues with a comprehensive framework.
They prioritize integrity, fairness, and transparency in their operations. The company maintains a strong code of conduct that outlines expected behaviors and ethical standards for employees at all levels. They emphasize training and education to ensure employees understand and adhere to ethical guidelines. The Cheesecake Factory also encourages open communication, providing channels for employees to report any ethical concerns or violations. By fostering a culture of accountability and responsibility, The Cheesecake Factory strives to address ethical issues promptly and appropriately, safeguarding their reputation and maintaining trust with stakeholders.
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Measuring conversions is a good way to calculate your ROI. Which of the following is a commonly calculated conversion? a shares, b sediment, c downloads, d likes
Answers
A commonly calculated conversion from the list is shares. The answer to this question is option a.
What are shares?Shares can be described as a unit that is called mutual funds. The owner of a share is regarded as a shareholder.
Shares can be converted to be money. Therefore it is the best answer to this question.
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Profit is _____.
the difference between business income and business expenses
a main motive for entrepreneurs starting new businesses
often calculated using a pie graph
all of the above
Answers
Answer:
ALL OF THE ABOVE
Explanation:
EDGE 2021 :D
Your broker charges a commission of 5.1% of the cost of the stock you so if you sell a batch of stock worth 2,617,75 how much commission will you owe the broker
Answers
Answer:
a
Explanation:
$133.51 commission will you owe the broker, if you sell a batch of stock worth 2,617,75.
Thus, the correct option is A.
Who is a broker?
A broker is a free-standing individual or business that conducts financial transactions on behalf of others. Stocks, foreign exchange, real estate, and insurance are just a few of the asset groups that are impacted by these transactions.
The trading broker only acts on behalf of others, whereas the trader only deals with his or her own assets ("on his or her own account"). The broker acts on your behalf by using your assets, not his.
A broker deals in currencies, commodities, and financial instruments. The broker always acts on behalf of others, which is how they differ from traders. Worldwide, there is a huge variety of brokers, each with a different style, level of quality, and regulatory setup.
The spread, fee, or financing costs associated with a trading position generate revenue. The other CFD broker, in contrast, solely benefits financially from the trader's loss. Any gain achieved by the trader is a loss for the broker, which is why positions are manipulated or withdrawals are not executed.
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HEY PLEASE SOMEONE HELP I NEED TO SUBMIT THIS WORK IN 30 MINUTES PLEASEEE!!!
Which method of distribution is suitable for sale of Coke in your school? Justify your answer.
Answers
The Coca-Cola Company sells its products to bottling and canning operations, distributers, fountain wholesalers and some fountain retailers. They then distribute them to retail outlets, corner stores, restaurants, petrol stations and many more.
When I had this question I found the link witch is on the document very helpful.
I hope this helps.
What does a credit bureau do?
It records borrowers' payment histories.
It protects borrowers' deposits.
It regulates credit unions.
It protects against fraud.
Answers
Answer:
b
Explanation:
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Perceptual sets are the result of ______________, which we form to organize and interpret unfamiliar information.
Answers
Answer:
I believe the answer would be schemas
Explanation: Hope this helps<3
The GUI is an index used by the OS to manage computer files,
O False
O True
Answers
Answer: I think it's true
1.the balance of an account is calculated as
A the total of the debit side
B the total of the credit side
C the difference between the totals of the debit and credit side
D.the sum of all entries
2.the total on the debit of an account is greater than the credit side.what does this mean?
A the account has a debit balance
B the account has a credit balance
C the account cannot be balanced
D the account has no balance
3.a credit balance occurs in a ledger account when
A the total on its debit side is greater than the credit side
B the total on its debit side is less than the total on its credit side
C the total on its debit side is equal to the total on its credit side
D the total is zero in the ledger account
Answers
Answer:
1.A
2.C
3.D
Explanation:
hope its help
After a presentation is created, there is nothing left to do.
True
False
Answers
Answer:
false
Explanation:
What is interpersonal?
Answers
Answer:
having the ability to relate to and connect with others