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

Refer to The Call of the Wild to answer the question.

The “call” for Buck to return to the wild is symbolized by which situation for John Thornton?

the flushing of his face from worry
the quest to get to the lost mine
the whispering to his friend for money
the wager on Buck to pull the sled

Answers

Answer:

the quest to get to the lost mine

Explanation:

"The Call of the Wild" is a film based on a novel. It tells the story of a dog named "Buck" whose life transitioned from a pampered life to a sled dog. His past owner was Judge Miller. However, one night, Buck was abducted and brought to Yukon. His life totally changed. He became a sled dog who was in charge of delivering mails under Perrault and Francoise. When the management changed, Buck and the pack were sold to Hal, a mean man who was in search for the lost mine. This mine was rumored to contain bundles of gold, but many people have actually died searching for it.

In the near end of the story, Buck travels with John Thorton in his quest to just live in the wild. However, that quest actually led them to the area where the golds were located. Then Buck met a white wolf, which signaled him to stay in the wild.

Answer:

B. The quest to get to the lost mine

Explanation:

Edge 2020... Correct Answer. I promise!

four examples of a routine decisions

Answers

Answer:

Give four examples of routine decisions.

...

Novice.

Apprentice.

Master.

Mentor.

Answer:

The four styles of decision making are directive, analytical, conceptual and behavioral. Each style is a different method of weighing alternatives and examining solutions.

who developed the revealed preference theory?
In economics

Answers

Answer:

In 1938 Samuelson presented revealed preference theory as an alternative to utility theory, while in 1950, Samuelson took the demonstrated equivalence of the two theories as a vindication for his position, rather than as a refutation.

Answer:

Samuelson developed the revealed preference theory.

Which of the following choices include only accounts that appear in the asset section of the balance sheet?Multiple Choice Prepaid supplies, unearned revenue, accounts payable Accounts payable, equipment, prepaid insurance Cash, prepaid rent, accounts receivables Common stock, prepaid rent, notes payable

Answers

Answer:

C. Cash, prepaid rent, accounts receivables.

Explanation:

A balance sheet can be defined as the financial statement that gives a detailed summary of the financial balance of a business firm or individual at a specific period of time. Therefore, it typically comprises of assets, liabilities, capital, debt, equity etc.

In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, cash, rent and accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.

Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.

Hence, account receivables, cash and rent are assets on the balance sheet, which are listed in order of liquidity.

The choice that include only accounts that appear in the asset section of the balance sheet are Cash, prepaid rent, and accounts receivables.

answer plese plese plese plese​

Answers

Answer:

pls yrr sachi pic pa please

You are analyzing the cost of capital for a firm that is financed with $300 million of equity and $200 million of debt. The cost of debt is 9 percent, while the cost of equity is 19 percent. What is the overall cost of capital for the firm?

Answers

Answer:

15.00 %

Explanation:

The cost of capital for the firm is the return that is required by the providers of long term permanent sources of finance. Such as equity and debt. Thus cost of capital works on the premise of Pooling of Funds and the thus the Cost of the Capital should be on a Weighted Average of all costs of the long term permanent sources of finance.

Weight of Equity = $300 ÷ ($300 + $200)

                            = 0.6

Weighted Cost of Equity = 19.00 % × 0.6

                                         = 11.40 %

Weight of Debt = $200  ÷ ($300 + $200)

                         = 0.4

Weighted Cost of Equity = 9.00 % × 0.4

                                         = 3.60 %

Therefore,

Cost of capital for the firm = 11.40 % + 3.60 %

                                            = 15.00 %

A ball rolls across a floor with an acceleration of 0.100 m/s2 in a direction opposite to its velocity. The ball has a velocity of 4.00 m/s after rolling a distance 6.00 m across the floor. What was the initial speed of the ball?a. 4.15 m/s.
b. 5.85 m/s.
c. 4.60 m/s.
d. 5.21 m/s.
e. 3.85 m/s.

Answers

Answer:

a. 4.15 m/s.

Explanation:

Given the following data;

Acceleration, a = -0.100 because it's in the opposite direction.

Final velocity = 4

Distance = 6

To find the initial velocity of the ball, we would use the third equation of motion;

[tex] V^{2} = U^{2} + 2aS [/tex]

Where;

V represents the final velocity measured in meter per seconds. U represents the initial velocity measured in meter per seconds. a represents acceleration measured in meters per seconds square. S represents the displacement measured in meters.

[tex] V^{2} = U^{2} + 2aS [/tex]

Making U the subject, we have;

[tex] U^{2} = V^{2} - 2aS [/tex]

Substituting into the equation, we have;

[tex] U^{2} = 4^{2} - 2*(-0.100)*(6) [/tex]

[tex] U^{2} = 16 + 1.2 [/tex]

[tex] U^{2} = 17. 2[/tex]

Taking the square root of both sides;

U = 4.147m/s ≈ 4.15m/s

Therefore, the initial speed of the ball is 4.15m/s.

50 POINTS....1. In which section of the Credit Report Isa List of Creditors checking the report?
A. Personal information
B. public records
C. inquiries
D. account history

Answers

Answer: B: Public records

Tried to help

According to the model of firm behavior introduced in the video, what is the main motivation for firms' actions? A. Revenue B. Sales C. Efficiency D. Profit

Answers

Answer:

D. Profit

Explanation:

As we know that every type of organization, business is worked for a profit. Also it is the main motivation to the actions of the firm. The competitive firms sell the products at low price to attract the customers in order to capture the market so that the maximum profit they could able to earned. For maximising the profit, the correct price and correct quantity is important

hence, the correct option is d.

Maxxie purchased a tract of land for $29,500. Today, the same land is worth $45,100. How many years have passed if the price of the land has increased at an annual rate of 5.7 percent?
a. 6.56 years
b. 5.74 years
c. 6.81 years
d. 7.66 years
e. 6.89 years

Answers

Answer:

n= 7.66 years

Explanation:

Giving the following information:

Present value (PV)= $29,500

Future value (FV)= $45,100

Interest rate= 5.7%

To calculate the number of years, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(45,100/29,500) / ln(1.057)

n= 7.66 years

Because it quickly reveals a candidate's education and experience record, most recruiters favor a(n) a. online resume b. chronological resume c. scannable resume d. functional resume

Answers

Answer:

b. chronological resume

Explanation:

A chronological resume is a resume in which it displays your work experience from latest to oldest job. Here you display your recent experience and achievements to the oldest so that it quickly reveals by the interviewer.

Hence, the correct option is b.

And all the other options are wrong

hence the same is to be considered

State the 5 most important banking services and rank them in order that you feel most important.

Answers

Answer:

checking account, savings acc, debit and credit cards, insurance , wealth management

Explanation:

The most important banking services can be as follows:

Account openingCheck issuing facilityLoan facilityIssuing credit or debit cardsInsurance assistance

What is a bank?

The bank is a financial authority that is accountable to the account holders who have opened their accounts in their bank.

Banks provide various types of services which are described as follows:

Banks allowed every individual of a country to open their respective accounts in any bank as per their income source.Banks provided the account holders the permit to issue a check in respect of any transaction in his/her name.They are given loans to the holder at a certain interest rate in accordance with the amount held in their bank accounts.They offer credit or debit cards for making cashless transactions or buying something expensive product in installments.They also provide insurance facilities in collaboration with the insurance company for a time span of some years.

Therefore, the service being provided by banks are explained as above.

Learn more about the banking system in the related link:

https://brainly.com/question/15062008

#SPJ2

Manley operates a law practice on the accrual method and calendar year. At the beginning of the year Manley's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?

a. $23,00
b. $3,000
c. $26,000
d. $5,000
e. $20,000

Answers

Answer:

e. $20,000

Explanation:

The computation of the manley deduction for the bad debt expense is shown below:

= Allowance for doubtful debts + bad debt expense - increased in the balance of doubtful debts

= $15,000 + $23,000 - $18,000

= $38,000 - $18,000

= $20,000

hence, the deduction of Manley for the bad debt expense is $20,000

Therefore the correct option is e.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

can someone please help meeeeeeee

Answers

Answer:

D: ISO 9000

Explanation: Labor Market Conditions, Land, quality-of-life all seem to be factors that do affect location decisions

I hope this helped :)

11. Paying off a consumer loan prior to its maturity Paying Off Installment Loans Some installment loans include terms that charge a penalty if the borrower pays off the loan earlier than its maturity date. The specific terms can vary so it’s important to know if a loan you’re considering provides for a prepayment penalty and if it does, what its exact terms are. A common way to compute a penalty is the sum-of-the-digits method. You and your friend recently took out installment loans. You expect to pay off your loan before its maturity date, so you made sure that the contract: Provides for the use of the Rule of 78s Does not contain a prepayment penalty clause Provides for the use of the sum-of-the-digits method Your friend didn’t anticipate being able to pay off the loan before its maturity date—until he won a lot of money in the lottery, enough to pay it off. He decided to pay off the loan today rather than invest his winnings. What’s the most likely reason why? The loan contract would use the sum-of-the-digits method to compute interest if your friend paid off the loan before its maturity date. The interest rate on the loan is lower than the rate of return your friend would earn on his investment. The contract does not contain a prepayment penalty clause. True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at the end of the loan. True or False

Answers

I believe it’s True hope this helps

If the old forecast is 100 and the latest actual demand is 83, what is the exponentially smoothed forecast for the next period?

Answers

Answer: 95.75

Explanation:

Old forecast = 100

Smoothing constant = 0.25

Latest actual demand = 83

New forecast will be:

= smoothing constant × latest demand + (1 - smoothing constant) × old forecast

= (0.25 × 83) + [(1 - 0.25) × 100)]

= 20.75 + 75

= 95.75

Alma Corp. issues 2,480 shares of $8 par common stock at $16 per share. When the transaction is recorded, credit(s) are made to a.Common Stock $19,840 and Retained Earnings $19,840. b.Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840. c.Common Stock $39,680. d.Common Stock $19,840 and Paid-in Capital in Excess of Par Value $19,840.

Answers

Answer:

b. Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840.

Explanation:

                                         Journal Entry

Particulars                                           Debit             Credit

Cash ($16*2,480)                                $39680

Common stock (2,480 *$8)                                         $19,840

Paid in capital in excess of par value (2,480 *$8)      $19,840

Is the decision of investing in the stock market rational or bounded rational? Please give logical reasoning to support your answer

Answers

Rational I’m just answering for points I’m frl sure sorry

At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 18,500 units and 16,500 units? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) DOL at 18,500 units DOL at 16,500 units

Answers

Answer:

DOL at 18,500 = 2.91 DOL at 16,500 = 3.78

Explanation:

First find out the Contribution margin per unit and the fixed costs to enable you calculate the profit for the 18,500 units and the 16,500 units.

DOL = Contribution Margin/ Profit

3.26 = Contribution Margin/ 78,000

Contribution Margin = 3.26 * 78,000

= $254,280

Per unit = 254,280/17,500 = $14.53

Fixed Costs = Contribution - Profit

= 254,280 - 78,000

= $176,280

DOL at 18,500 units.

Profit = (14.53 * 18,500) - fixed costs of $176,280

= $92,525

DOL = Contribution/ Profit

= (14.53 * 18,500) / 92,525

= 2.91

DOL at 16,500 units.

Profit = (14.53 * 16,500) - 176,280

= $63,465

DOL = (14.53 * 16,500) / 63,465

= 3.78

Laura Cervantes is a currency speculator and she sells eight June futures contracts for 500,000 pesos at the futures price of 0.10773 $/MXN.a) What is the value of her position at maturity if the ending spot rate is $0.12002/MXN?b) What is the value of her position at maturity if the ending spot rate is $0.09802/MXN?

Answers

Answer and Explanation:

The computation is shown below:

Given that

June Futures Contract = 500000 Pesos (MXN)

And Number of Contracts Sold = 8

And, Initial Exchange Rate = 0.10773 $ / MXN

Now

Initial Position Value is

= 8 × 500000 × 0.10773

= $430920

Now

(a) The value of her position is

Final Exchange Rate = $0.12002 / MXN

Final Position Value is

= 8 × 500000 × 0.12002

= $480080

So,  

Net Position Value is

= 430920 - 480080

= - $49160

And,

(b) The value of her position is

Final Exchange Rate = $0.09802 / MXN

Final Position Value is

= 8 × 500000 × 0.09802

= $392080

So,

Net Position Value is

= 430920 - 392080

= $38840

Donnegan Company reported operating expenses of $325,000 for 2020. The following data were extracted from the company’s financial records: 12/31/19 12/31/20 Prepaid Expenses $ 60,000 $69,000 Accrued Expenses 210,000 255,000 Accounts Payable 300,000 350,000 On a statement of cash flows for 2020, using the direct method, cash payments for operating expenses should be:___________.

Answers

Answer:

cash payments for operating expenses should be $329,000

Explanation:

Cash Payments for operating expenses is included in the Cash Flow from Operating Activity Section of the Statement of Cash Flows when the Direct Method of preparing this statement is selected.

This is calculated as follows :

Cash Payments for operating expenses

Operating expenses                                                               $325,000

Adjustment of changes in Working Capital

Increase in Prepaid Expenses ($69,000 - $ 60,000)              $9,000

Increase in Accrued Expenses ($255,000 - $210,000)        $45,000

Increase in Accounts Payable ($350,000 - $300,000)       ($50,000)

Cash payments for operating expenses                              $329,000

Which of the following is a tertiary ratio that drives protability?

Answers

Answer:

hope it helps..

Explanation:

Total Assets/Equity. A tertiary ratio that drives profitability.

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

On December 31, Strike Company sold one of its batting cages for $20,084. The equipment had an initial cost of $223,162 and had accumulated depreciation of $200,846. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

Answers

Answer:

Loss on disposal = $2232

Explanation:

To calculate the amount of gain or loss on sale, we must first calculate the net book value or NBV of the asset. The net book value is the difference between the cost of the asset and the accumulated depreciation. The formula for NBV is as follows,

NBV = Cost - Accumulated depreciation

NBV = 223162 - 200846

NBV = 22316

If the sales proceeds are more than the NBV of the asset, the asset is sold on gain and vice versa.

Loss on disposal = 20084 - 22316 = - $2232 or$2232 loss

Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.)

Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio
1. $640 $352 $ (a)$ (b)%
2. $300 (c) $93 (d)%
3. (e) (f) $325 25 %

Answers

Answer:

Selling Price_Variable Costs_Contribution Margin_CM Ratio

1. $640 _________$352 _______$288 __________45%

2. $300_________$207 _______ $93 __________69%

3. $1,300 _______ $975 _______$325 __________25 %

Explanation:

As per given data

Selling Price_Variable Costs_Contribution Margin_CM Ratio

1. $640 _________$352 _______$288 $ ________45%

2. $300_________$207 _______ $93 __________69%

3. $1,300 _______ $975 _______$325 __________25 %

(a)

Unit Contribution margin = Unit selling price - Unit Variable cost

Unit Contribution margin = $640 - $352 = $288

(b)

Contribution margin Ratio = Unit Contribution margin / Unit selling price = $288 / $640 = 0.45 = 45%

(c)

Unit Contribution margin = Unit selling price - Unit Variable cost

$93 = $300 - Unit variable cost

Unit variable cost = $300 - $93 = $207

(d)

Contribution margin Ratio = Unit Contribution margin / Unit selling price = $207 / $300 = 0.69 = 69%

(e)

25 = $325 / Unit selling price

Unit selling price = $325 / 25% = $1,300

(f)

$325 = $1,300 - Unit Variable cost

Unit Variable cost = $1,300 - $325 = $975

what is the value of a 1000 dollar investment that loses 5% each year

Answers

Answer:

$663.42

Explanation:

1000(0.95)^8

= $663.42

Tina has $93,000 total taxable income, which includes $18,000 of taxable income from Japan. She paid $2,200 in foreign income taxes and her U.S. tax liability is $19,610. Tina's foreign tax credit is: (Do not round interim calculations)

Answers

Answer:

$19,610 good luck. Can you mark me as brainlyest?

The year-end balance sheet of Fine Foods Inc. reports operating assets of $4,391 million, operating liabilities of $1,653 million, and total liabilities of $2,494 million.
Fine Food’s average net operating assets are:__________
a. $2,738 million
b. $1,897 million
c. $6,044 million
d. There is not enough information to calculate the amount.
e. $4,391 million

Answers

B is there answer to the question

Suppose that you invest $100 today in a risk-free investment with an annual compounding interest rate of 4%. What will be the value of your investment in 4 years?

Answers

Answer:

Value of investment = $117

Explanation:

Given:

P = $100

r= 4% = 0.04

n = 4 years

Computation:

A = P(1+r)ⁿ

A = 100(1+0.04)⁴

A = 100(1.04)⁴

A = 116.9858

A = $117

Value of investment = $117

Which phrase best completes the diagram? Business banks Retail banks ? Accept deposits to checking accounts Make home mortgage loans A. Provide credit and debit cards O B. Offer certificate of deposit investments O C. Require car titles as collateral O D. Provide cash management services​

Answers

The phase that best explains the diagram is that it best provides cash management services​. Thus option D is correct.

what is a management service?

The management service is a practice of outsourcing responsibilities for maintenance and the needs for the arrangement and processes and functions it involves the reduction in budgetary expenditure. The diagram shows us the business and retail bank that accepts deposits and makes home mortgages.

Find out more information about the diagram.

brainly.com/question/12903285

Answer: D

Explanation: I just took the test

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