Business, 23.04.2020 04:34 bbrogle4070

Moerdyk Corporation's bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (r d) is 4.75%, based on semiannual compounding. What is the bond's price?

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Answer from: aleiahmartin

Bond price is $1,118.31

Explanation:

The bond's price can be computed using the pv formula in excel.which is =-pv(rate,nper,pmt,fv)

rate is the semi-annual interest rate of 4.75%/2=2.375%

The nper is the number of times the bond would pay coupon interest which is 10 years multiplied by 2=20

The pmt is the semi-annual coupon interest which is $1000*6.25%/2=$31.25

The fv is the face value of $1000 at which the bond would be retired

=-pv(2.375%,20,31.25,1000)

pv=$1,118.31

Ultimately the bond price is $1,118.31

The bond was issued at a premium of $118.31

Answer from: chubnastii

The bond's price is $1118.31

Explanation:

The price of the bond today is the present value of the interest payments from the bond along with the present value of the face value of the bond. The present value of the interest payments is the present value of the annuity. Thus, the price of the bond should be,

The semi annual interest payment is 1000 * 0.0625 * 1/2 = 31.25

The semi annual compounding period are = 10 *2 = 20 periods

Price of the bond = 31.25*[(1 - (1+0.02375)^-20) / 0.02375] +

1000/(1+0.02375)^20

Price of the bond = $1118.31

Answer from: Quest

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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Moerdyk Corporation's bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $...

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