subject
Business, 22.04.2021 16:40 luis83113

An investor owns a $3,000 par-value 12% bond with semiannual coupons. The bond will mature at par at the end of fourteen years. The investor decides that a ten-year bond would be preferable. Current yield rates are 6% convertible semiannually. The investor uses the proceeds from the sale of the 12% bond to purchase an 8% bond with semiannual coupons, maturing at par at the end of ten years. Find the face value of the 8% bond.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 05:00
Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
Answers: 3
question
Business, 22.06.2019 05:30
From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?
Answers: 1
question
Business, 22.06.2019 09:40
Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?
Answers: 2
question
Business, 22.06.2019 15:00
Which of the following is least likely to a team solve problems together
Answers: 1
You know the right answer?
An investor owns a $3,000 par-value 12% bond with semiannual coupons. The bond will mature at par at...
Questions
question
Mathematics, 05.12.2019 10:31
Questions on the website: 13722367