# Due to a number of lawsuits related to toxic wastes, a major chemical manufacturer has recently experienced a market reevaluation. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8 percent, with interest being paid semiannually. The face value of the bond is \$1,000. The required simple rate of return on this debt has now risen to 16 percent. What is the current value of this bond?

The bonds now is being traded at \$758.63

Explanation:

We have to discount the coupon payment and maturity at he market rate:

Present value of the coupon payment

Coupon payment \$1,000 x 8%/2 = 40.00

time 15 years x 2 =  30

rate 0.08

PV \$450.3113

Present value of the maturity:

Maturity  \$1,000

time  30

rate  0.04

PV   308.3187

PV c \$450.3113

PV m  \$308.3187

Total \$758.6300

## Related Questions

What term refers to the total compensation that an employee earns before their employer deducts taxes and withholdings? The total compensation that an employee earns before their employer deducts taxes and withholdings is known as________ pay.

The correct answer is Gross Pay.

Explanation:

The total compensation that an employee earns before their employer deducts taxes and withholding is know as Gross Pay.

When a person works for an organization, he receives salary in exchange of his work for the organization. The organization deducts taxes of the state and federal from his salary and then transfers his pay to his account. The salary of the employee, before the organization deducts taxes and withholding, is called as the Gross Salary or Gross Pay. The pay that person receives after deductions is called as the net pay or net salary.

"Gross pay"

Gross pay is before taxes and withholdings, net pay (aka take-home pay) is what is left over after taxes/etc are taken out.

Each of the following is an effective way a company can manage consumer satisfaction except: Group of answer choices Use an outside service to measure customer satisfaction and use the information to make needed adjustments to the product.
Reduce the price of its product.
Print an 800 number on its packaging and have trained customer service representatives answer questions.
Continue to provide strong service after the sale.
Appoint a consumer advocate (Chief Customer Officer).

Reduce the price of its product.

Explanation:

Reduction of price is not a sustainable way of managing customer satisfaction. Even if the customer is initially happy the business cannot consistently offer low prices as incentive because this will affect quality of the product. Once product quality goes down it will result in customer dissatisfaction.

Focus should instead be placed in giving the customer value. When customer's reciev value from your business consistently they will keep coming back.

The primary reason for placing reinforcing steel in concrete is to:

Steel is very strong in tension and can with stand quite and enormous amount of pressure if when put to the test. Regardless of its high quality to weight proportion, steel structures have as much warm mass as comparative solid structures. The versatile modulus of steel is roughly 205 GPa

How does knowledge of labor market information assist HR professionals in developing a quality staffing plan? From an external sourcing perspective, which HR initiatives and strategies are effective approaches to filling key positions in a labor market with talent shortages?

From an internal sourcing perspective, which HR initiatives and strategies are effective approaches to filling key positions in a labor market with talent shortages?

How does knowledge of labor market information assist HR professionals in developing a quality staffing plan?

Anwser: Knowledge of labor market information is very important because it allows human resources professionals to plan what kind of resources they can find in the market and accordingly choose the best options. In addition to the labor market information, important statistics on how difficult they can find can be to find certain resources or if it is very simple, which can influence the price.

From an external sourcing perspective, which HR initiatives and strategies are effective approaches to filling key positions in a labor market with talent shortages?

Anwser: The best strategy to fill this type of position is to look for specialized job vacancies or to have better access, for example, social networks at this time help a lot in the search for human talent, because in them you can see additional to the Resume the social, economic and personal aspects of the candidates, we can also see what they can think about what their interests are.

From an internal sourcing perspective, which HR initiatives and strategies are effective approaches to filling key positions in a labor market with talent shortages?

Anwser: Internally you should talk with the areas interested in acquiring the new staff in this case. You should mainly talk about how much you are willing to pay for this staff or this skilled workforce if the answer is that you can pay more than normal in the market will be more easy to get an answer from the candidates in any case if there is a shortage of talent what can be also is to hire a little lower staff and train them to fill the positions that have a shortage

Greenwave garden centers is a national chain of discount gardening stores. The top management at greenwave realizes that different regions of the united states have very different climates and soil conditions, so they give regional managers a great deal of freedom to decide exactly what types of plants, fertilizers, and other items to stock and how to best market these products. Greenwave is an example of a _______________ organization.

Greenwave is an example of a "decentralized" organization.

A decentralized organization is one in which most choices are made by mid-level or lower-level managers, as opposed to being made halfway by the leader of the organization. It's the inverse of a unified association, in which all choices are made at the best.

Decentralized organization depend on a team environment at various levels in the business. People at each level in the business may have some self-governance to settle on business choices.

In a capitalist, market, or free-enterprise economy, which of the following answers the three basic economic questions? the government
the economic experts
the markets
the churches

"The markets" is the one among the following that answers the three basic economic questions in a capitalist, market, or free-enterprise economy. The correct option among all the options that are given in the question is the third option. I hope that this answer has actually come to your help.

Suppose a company which sells breakfast cereal puts a coupon in each box of cereal that it sells during the month of December 2017. The coupon permits \$1 off the purchase price of the next box of cereal. Customers will present the coupons to grocery stores when they wish to redeem the coupons. The manufacturer will reimburse the grocery stores \$1 for each coupon that the stores send to the manufacturer. The manufacturer sells 1,000,000 boxes of cereal in December of 2017. Should the manufacturer accrue an expense in 2017 for the coupon promotion? Why or why not?

Answer: The manufacturer should accrue an expense for \$1,000,000 (i.e. 1,000,000 boxes \$1 coupon) in December 2017.

Explanation:

The manufacturer should accrue an expense for \$1,000,000 (i.e. 1,000,000 boxes \$1 coupon) in December 2017.

As per the matching concept, revenue should be matched with expenses that has been incurred to earn such revenue.

Hence, since the \$1,000,000 is an expense incurred for the sales in Dec 2017, the same should be recognized in Dec 17, though the actual payment will be done in future.

Walden Industries is considering investing in​ production-management software that costs​ \$630,000, has​ \$67,000 residual​ value, and leads to cost savings of​ \$1,650,000 per year over its​ five-year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.

\$348,500

Explanation:

The average amount invested or average investment is calculated by adding the initial investment plus the residual value, and then divide the result by 2:

average amount invested = (amount invested + residual value) / 2

average amount invested = (\$630,000 + \$67,000 ) / 2  = \$697,000 / 2 = \$348,500

In an attempt to have funds for a down payment, Jan Carlson plans to save \$3,700 a year for the next five years. With an interest rate of 6 percent, what amount will Jan have available for a down payment after the five years?

\$20,857.24

Explanation:

This is an ordinary annuity question which can be solved using a financial calculator. The inputs are as follows;

Total duration of investment; N = 5

Interest rate per year; I/Y = 6%

Recurring annual payment;  PMT = 3,700

One time cashflow; PV = 0

then compute the future value of the annuity; CPT FV = 20,857.244

Therefore, Jan will have \$20,857.24 as down payment in 5 years.