Harrison co. issued 17-year bonds one year ago at a coupon rate of 6.8 percent. the bonds make semiannual payments. if the ytm on these bonds is 5.4 percent, what is the current dollar price assuming a $1,000 par value? (do not round intermediate calculations and round your answer to 2 decimal places,

e. g., 32.16.) current bond price $ 1,148.73 correct

The current market price of the bond is $1148.73.

We have:  

Face Value (FV)  1000

Coupon rate  6.80%

YTM  5.40%

No. of years  16

Compounding  Semi-Annual

We take 16 as the number of years since the bonds were issued a year ago.

We calculate ytm per period, coupon rate, number of periods as follows:

Coupon interest per period (C)  

YTM per period (r)                        

Number of periods (n)        

The bond's current market price is calculated as :

Substituting the values we get,

CMP_{bond} = 34*\left ( \frac{1-(1.027)^{32}}{0.027}\right )}+\frac{1000}{(1.027)^32}[/tex]

CMP_{bond} = 34*21.247040283  +\frac{1000}{2.345601308 }[/tex]

mathbf{CMP_{bond} = 1,148.73}

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; the coefficient of determination;