Year Year Forward Rate 1 4.6% 2 4.9% 3 5.2% 4 5.5% 5 6.8% What should the purchase price of a 3-year zero-coupon bond be if it is purchased today and has face value of $1,000?A. $966.87.B. $911.37.C. $950.21.D. $956.02.E. $945.51.

Answers

Answer 1

Answer:

no option is correct, since the market value of the bond is $866.32

if the bond matured in 2 years instead of 3, then option B. $911.37 would be correct = $1,000 / [(1.046)x(1.052)] = $911.366 = $911.37

Explanation:

in order to determine the market value of the bond we need to determine the present value of its face value:

market value = PV = future value / [(1 + i₁) x (1 + i₂) x (1 + i₃)]

future value = $1,000

[(1 + i₁) x (1 + i₂) x (1 + i₃)] = [(1 + 4.6%) x (1 + 4.9%) x (1 + 5.2%)] = 1.154311

PV = $1,000 / 1.154311 = $866.32


Related Questions

Frederico owns a coffee shop and is required to pay sales taxes on the total amount he earns in his coffee shop. Who assessed this tax?

A. Consumer court
B.coffee suppliers
C. Local government
D. Banks

Answers

The answer is C, it is because they are the one who assess taxes.

Answer:

Local Government

Explanation:

They are the ones that assess your taxes

Trying to solve every problem on your own shows that you are responsible true or false

Answers

Answer:

True

Explanation:

What kind of question is this?

Answer:

I solve questions that I recognize

Maria, a certified financial planner, must also be a licensed attorney to be appointed Trustee of a bankruptcy estate. A. True B. False

Answers

Answer: False

Explanation:

Bankruptcy Trustees are usually lawyers and this is why people think that they must always be lawyers but this is not the case.

The United States Trustee who is an officer of the Department of Justice and the one in charge of appointing Bankruptcy Trustees, can appoint a person other than a licensed attorney to be the representative of an estate for bankruptcy related matters (trustee) such as accountants or financial planners.

First to respond with what points are and what they do on Brainly gets 100 points.

Answers

Answer:

You need points in order to ask questions. You get points by answering questions. It's the cycle of.... help to be helped, I guess.

Answer:

on brainly i help people and get answers

Users need to use points to post a question

Explanation:

Lockard Company purchased machinery on January 1, 2020, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. A) Compute 2020 depreciation expense using the straight-line method. B) Compute 2020 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2020.

Answers

Answer:

a) $9,000

b) $3,000

Explanation:

The calculation of the depreciation expense for each of the following cases  

a)

As we know that  

= (Purchase cost of machinery - estimated salvage value) ÷ (useful life)

= ($80,000 - $8,000) ÷ (8 years)

= ($72,000) ÷ (8 years)  

= $9,000

b)  Since the asset purchased as on Sep 1, 2020 so the depreciation expenses would be charged for four months i.e. From September to December.

Also at the same time we assume the books are closed as on Dec 31,2020

Therefore, the depreciation expense is

= $9,000 × 4 months ÷ 12 months

= $3,000

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):____________

Answers

Answer:

acquisition

Explanation:

Since in the question it is mentioned that IBM buy MRO software Inc for $740 million where the MRO is a niche provider that help the customers. While on the other hand the IBM plans to fold MRO into the unit of software

So, this is an example of the acquisition as IBM buy the MRO software

hence, the same is to be considered

The lengths of service of all the executives employed by Standard Chemicals are:

Name Years
Mr. Snow 20
Ms. Tolson 22
Mr. Kraft 26
Ms. Irwin 24
Mr. Jones 28

(a) Using the combination formula, how many samples of size 2 are possible?
(b) List all possible samples of 2 executives from the population and compute their means.
(c) Organize the means into a sampling distribution.
(d) Compare the population mean and the mean of the sample means.

Answers

Solution :

a). There are total 5 executives. Therefore the possible sample size of 2 is

[tex]$^nC_r=\frac{n!}{r!(n-r)!}$[/tex]

[tex]$^5C_2=\frac{5!}{2!(5-2)!}$[/tex]

      [tex]$=\frac{5!}{2! \ 3!}$[/tex]

     = 10

So, there are 10 possible ways for selection of sample size of 2.

b).

     Sample          Samples of service length            Sample mean

Snow, Tolson               20, 22                                    (20+22)/2 = 21  

Snow, Kraft                   20, 26                                         23

Snow, Irwin                   20, 24                                         22

Snow, Jones                 20, 28                                         24

Tolson, Kraft                 22, 26                                         24

Tolson, Irwin                 22, 24                                         23

Tolson, Jones               22, 28                                         25

Kraft, Irwin                     26, 24                                         25

Kraft, Jones                   26, 28                                         27

Irwin,Jones                    24, 28                                         26

c). The mean and the standard deviation of the means of the sampling distribution is given by :

[tex]$\bar{X}= \sum_{i-1}^{10}\frac{\bar{x}_i}{n}$[/tex]

   [tex]$=\frac{21+23+22+24+24+23+25+25+27+26}{10}$[/tex]

   [tex]$=\frac{240}{10} $[/tex]  

  = 24

The variance of the sample means :

[tex]$S^2=\frac{1}{n}\sum_{i-1}^{10}\left(\bar x_i - \bar X \right)^2$[/tex]

   [tex]$=\frac{1}{10}\sum_{i-1}^{10}\left(\bar x_i - 24 \right)^2$[/tex]

  [tex]$=\frac{1}{10}\times(30)$[/tex]

  = 3

Therefore the standard  deviation of the sample means is

[tex]$S=\sqrt{variance}$[/tex]

  [tex]$=\sqrt3$[/tex]

  = 1.732

d). The population means is given by:

[tex]$\mu =\frac{20+22+26+24+28}{5}$[/tex]

  [tex]$=\frac{120}{5}$[/tex]

  = 24

Therefore, we can say that the mean of the sample means is a point estimate of the population mean.

Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.
Year 0123
Cash flow -$1000 $425 $425 $425
a. 13.87%
b. 13.21%
c. 15.29%
d. 12.55%
e. 14.56%

Answers

Answer:

the project's IRR is b. 13.21%

Explanation:

The Internal Rate of Return (IRR) of a Project is interest rate that causes the the Present Values of the Project Cashflows to equal the price of the Initial Investment.

This can be calculated using a financial calculator as follows ;

-$1000         CFj

$425           CFj

$425           CFj

$425           CFj

Then Shift IRR/YR we get 13.2054 % that is 13.21%.

A department store has budgeted sales of 12,000 men's coats in September. Management wants to have 6,000 coats in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,000 coats. What is the dollar amount of the purchase of suits if each coat has a cost of $75? Each suit has a cost of $75.

Answers

Answer: $1,050,000

Explanation:

The dollar amount of the purchase of suits if each coat has a cost of $75 can. Be calculated as thus:

Budgeted sales = 12000

Add: sales inventory = 6000

Less: September beginning inventory = 4000

Required purchase for September will now be:

= 12000 + 6000 - 4000

= 14000

The dollar amount will be:

= 14000 × $75

= $1,050,000

Below is a table for the present value of $1 at Compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 0.890 0.826 0.797
3 0.840 0.751 0.712
4 0.792 0.683 0.636
5 0.747 0.621 0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 1.833 1.736 1.690
3 2.673 2.487 2.402
4 3.465 3.170 3.037
5 4.212 3.791 3.605

Using the tables provided, if an investment is made now for $23,700 that will generate a cash inflow of $7,900 a year for the next 4 years, the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%, is:________

Answers

Answer: $‭1,343‬

Explanation:

Net Present Value = Present value of Cash inflows - Present value of Cash outflows

Cash inflows are constant and so are an annuity.

Present value of Cash inflows = Annuity * Present value interest factor of annuity, 4 years, 10%

= 7,900 * 3.170

= $‭25,043‬

Net Present Value = ‭25,043‬ - 23,700

= $‭1,343‬

Whenever significant expansionary policies are implemented and left in place for at least half a year or more, the likely result is:_____.

Answers

Answer:

It starts effecting price level - inflationary pressure in economy.

Explanation:

Expansionary policies are aimed at increasing Aggregate Demand, by Fiscal or monetary approach.

Fiscal expansion policy include increasing government public expenditure, reducing government tax revenue. Monetary Expansion policy aim include credit expansion - from decreased LRR, decreased bank rate, decreased marginal requirement etc

Significant expansion policy left for more than half an year, start exerting inflationary pressure on the economy price level.

Answer:

high inflation or reduced government spending

Explanation:

A seller (or provider) of goods or services to a business organization is known as a:
A Vendor.
B Payee.
C Vendee.
D Creditor.
E Debtor.

Answers

Answer:

A. Vendor.

Explanation:

This individual or company would be known as a vendor. These individual/company offer others a specific good or service for their own personal or commercial use. These individuals/companies make money by manufacturing the product and selling them to others and making a profit in the process. Usually they also sell these products in bulk which still nets them good profit and provides a cheaper price to the buyer.

Outstanding debt of Home Depot trades with a yield to maturity of 5%. The tax rate of Home Depot is 40%. What is the effective cost of debt of Home Depot

Answers

Answer:

3.00%

Explanation:

The effective cost of debt of Home Depot = 5%*(1 - 0.40)

The effective cost of debt of Home Depot = 0.05*0.60

The effective cost of debt of Home Depot = 0.03

The effective cost of debt of Home Depot = 3.00%

Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $6,200 and payment terms of 2/10, n/30. Alison uses the net method to record purchases. Alison should record the purchase at:
a. $3,038.
b. $6,200.
c. $6,076.
d. $6,324.

Answers

Answer:

c. $6,076

Explanation:

Calculation for what Alison should record the purchase

Purchase=$6,200 ×(100%-2%)

Purchase=$6,200 ×98%

Purchase=$6,076

Therefore if Alison uses the net method to record purchases she should record the purchase at:$6,076

Anna does not have the admission fee to get into and amusement park. She convinces her friend, Steven,

to let her hide in the trunk of his car so that she can sneak into the park. She defends her actions by

saying that the loss to the amusement park is 'intangible" because no one was hurt and because she

did not really take anything of value. She also says that she is just a teenager who doesn't have as much

money as the rich owners of the park. Why is the theft wrong despite Anna's feelings?

Answers

Answer: see explanation

Explanation:

Based on the scenario that has been discussed in the question, the theft is wrong despite Anna's feelings because Anna did not pay the admission fee to get into the amusement park. This ultimately leads to the reduction in revenue on the part of the owner of the amusement park.

Let's take a look at a scenario whereby everyone who got into the amusement park did exactly thesame thing that Anna did,this simply means that no one will pay and the owner of the amusement park might eventually close down due to the fact that he or she will run at a loss. Anna's decision to hide in the trunk and enter the amusement park isn't ethical as well.

Considering the needs of a global audience is essential to success in the hospitality and tourism industry?

Answers

Answer:

True

Explanation:

In simple words, the hospitality and tourism industry refers to the activities related to accommodation, restaurant and tourism etc. In such industries the main focus of the companies is the comfort and joy of their clients. This becomes difficult to implement as every individual have different needs and circumstances. Thus, the planning of activities should be made in such a way that it suited the global audience.

Samson purchased some equipment for $86,749 on March 15, 2017. He decided he did not need the equipment and sold it on March 10, 2018 for $82,000. The equipment was subject to depreciation of $16,851 for 2017 and 2018. What gain or loss will Samson recognize on the sale of the equipment?
A. $4,749 ordinary loss.
B. $12,102 ordinary gain.
C. $12,102 capital gain.
D. $4,749 capital loss.

Answers

$12,102 ordinary gain.

What is the effect on​ China's aggregate demand when the United States goes into​ recession, when Japanese and European firms establish new plants in​ China, or when the Chinese yuan strengthens against the U.S.​ dollar?

Answers

Answer:

When the United States goes into recession - China's aggregate demand suffers greatly, meaning that it is reduced. This is because China is an important exporter of goods to the United States, so the exports element of Aggregate Demand will fall, bringing down Aggregate Demand as a whole.

When Japanese and European firms establish new plants in​ China - Chinese aggregate demand increases because more private investment from abroad arrives in the country, not only benefiting the Japanese owners, but also Chinese workers in the form of wages, Chinese companies in the form of more domestic consumption, and the Chinese government in the form of more tax revenue.

when the Chinese yuan strengthens against the U.S.​ dollar? - Aggregate demand will probably fall because a stronger yuan will decrease Chinese exprots, and increase American imports to China, and imports are not part of the Aggregate Demand calculation.

Which stage of an industry's growth cycle offers the greatest opportunity for an investor who is seeking capital gains?

a. initial development
b. mature growth
c. stability or decline
d. rapid expansion

Answers

Answer:

d. rapid expansion

Explanation:

The main objective of an investor is to invest his capital in an industry that generates profits. Therefore, analyzing the above question, it is correct to say that an organization that is expanding its business quickly, is achieving success in the market in which it operates, so this alternative is ideal for an investor seeking capital gains.

Initial development would be an alternative that does not have a real return for the investor, mature growth is also not the most profitable option, and the stability or decline option does not present a profitable and reliable alternative for an investor.

PLS HELP ASAP

Owners equity includes (______), which is the amount of profits that your business has been able to save over the past few years.

Answers

Retained earning
Explanation:
A company's profits are distributed to shareholders as dividends, retained in the business for reinvestment, or both. Therefore, retained earning are profits that were not distributed to shareholders. They are funds that belong to owners but withheld for use in the business.
Retained earnings form part of a company's capital. It is money that shareholders have contributed to the business by not sharing in profits.

What are three major technology advancements that made it possible for Amazon to succeed in starting up the industry of online business?

Answers

Answer:

The internet. The introduction of Wi-FiThe introduction of websites

Which type of credit is used to lease a building?

Answers

Answer:

service credit

Explanation:

Information on Kimble Company's direct labor costs for the month of January is as follows:________. Actual direct labor hours 34,800 Standard direct labor hours 35,600 Total direct labor payroll $ 269,700 Direct labor efficiency variance-favorable $ 5,600 What is Kimble's direct labor rate variance?

Answers

Answer:

Direct labor rate variance= $26,100 unfavorable

Explanation:

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 269,700/34,800= $7.75

First, we need to calculate the standard rate:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

5,600 = (35,600 - 34,800)*standard rate

5,600/800= standard rate

$7= standard rate

Now, the direct labor rate variance:

Direct labor rate variance= (7 - 7.75)*34,800

Direct labor rate variance= $26,100 unfavorable

Avery Co. has $1.1 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt

Answers

Answer:

0.26

Explanation:

Given that :

Value of debt = $1.1 million

Value of preferred stock = $1 million

Value of common equity = $2.2 million

Total value of company's funds :

(value of debt + value of Preffered stock + value of common equity)

(1.1 + 1 + 2.2) million

= $4.3 million

Hence, weight of debt :

Value of debt / total value of company's funds

$1.1 million / $4.3 million

= 0.2558

= 0.26

This morning, Mary bought a ten-year, $1000 par value bond with a 7.0% coupon rate and annual payments. She paid $994 for the bond. If the market interest rate on this type of bond decreases to 6.5% tonight, how much will Mary receive for her first coupon payment?a. $32.50.b. $35.00.c. $65.00.d. $69.58.e. $70.00.

Answers

Answer:

e. $70.00

Explanation:

The coupon payment is the amount received by the bondholder on a periodic basis during the life of the bond which is based on the bond's face value which in this case is $1000

Note that the coupon payments are expected to be made once a year.

Coupon payment=bond face value*coupon rate

bond face value=$1000

coupon rate=7%

annual coupon payment=$1000*7%

annua coupon payment=$70.00

what is globalization ?

Answers

Answer:

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Explanation:

Yeah

Which of the following government agencies is responsible for managing the
money supply in the United States?
A. The U.S. Mint
B. Congress
C. The Federal Reserve Bank
O D. The Department of the Treasury

Answers

Answer:

Explanation:

C The Federal reserve Bank

The government agency that is responsible for managing the money supply in the United States is the Federal Reserve Bank.

What do you mean by money supply?

Money supply refers to the total amount of money held by the public for a particular point.

The money supply in the U.S. is controlled by the U.S. Federal Reserve.  The federal reserve is the central banking system of the United States of America. It serves as the lender of last resort to the major banking institutions.

Therefore, C is the correct option.

Learn more about Money Supply here:

https://brainly.com/question/24249291

Cash flows from collections on credit sales are usually reported in the statement of cash flows as part of:


Operating activities.

Financing activities.

Investing activities.

Noncash activities.

This is not reported in the statement of cash flows.

Answers

Answer:

Operating activities.

Explanation:

Operating activities are events and transactions that generate income for a  business. They are the normal business activities of producing or purchasing merchandise, selling goods, and services to customers. They also include business administration and selling expenses.

Examples of incomes from operating activities are

1.  Cash sales

2. Interest received

3. Lawsuit settlements receipts

4. Cash dividends received

5. Collection from accounts receivables

g Briefly explain why data visualization is important. Support with an example from the activity

Answers

Answer:

Visualization is important because every body learns slightly differently. Some people learn from doing the task hands-on, some people learn from watching someone else do the task, some people learn from reading about it, hearing about it etc etc. It is also important to show visuals to show your answer, and/or reasoning in greater detail; say that you are giving a presentation about stocks, you could just write about it, but if you show graphs, pictures, and other visuals, then you'll get your point across a lot faster, and look professional in the process

I don't know the activity so I can't give an example from "this activity" it hopefully you find some help fro this

Explanation:

May I have brainliest please? :)

The process of obtaining and placing information in a visual environment is known as data visualization. For human brain, data visualization detects patterns, trends and contours of data sets.

Data visualization can aid in the most efficient delivery of information.Data visualization is and important part of the business intelligence process because it takes raw data, transforms it, and makes it available for conclusions. Data scientists create machine learning algorithms in Advanced Analytics to better compile essential data into visualizers that are easier to comprehend and interpret. Visual data is used in data visualization to transmit information globally, swift and effectively.

To know more about data visualization, refer to the link:

https://brainly.com/question/14467658

In June 2019, Kim filed for divorce from her husband, Eric. Although they lived apart for the last six months of the year, their divorce ios not yet finalized; they are still legally maried. Kim does not wish to file a joint 2019 return. she has no qualifying relative or qualifying relative. What filing status should kim use?.
a. HH
b. MFS
c. S
d. Unmarried for tax purposes.

Answers

Answer:

b MFS

Explanation:

Since in the question it is mentioned that Kim does not want to file a joint return as on the year 2019 also she has no qualifying relative so here the KIM should used the married filing separately

Hence, the same is to be considered

Therefore the correct option is b

And all the other options are wrong

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