Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10,000 one-year bonds. If the interest rate on the bond falls to 12%, the price of these new bonds is $???
12% = $10000 - X Divided by X Times 100

Answers

Answer 1

The price of the new bonds given the face value and interest rate is $8,928.57.

What is the price of the bonds?

Bonds are debt instruments issued by a firm with the purpose of raising capital to carry out projects. The price of the bonds can be determined by discounting the face value of the bonds by the interest rate.

The price of the bonds = face value of the bonds / ( 1 + interest rate)

$10,000 / (1.12) = $8,928.57

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Built for communication across roles instead of from top down.

Explanation:

To promote coordination and cooperation among employees with a similar rank, position, or status in the company.

Why are process layouts more popular than other layouts in the service industry?

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Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.13%. If the yield to maturity for the bond is 7.53%, what will the price of the bond be

Answers

Based on the information given the price of the bond  is $956.91.

Price of bond

To determine the of the bond we would be using financial calculator by inputting the data below.

N=Number of years=2×11=22

PMT=Payment per period=7.53%×1000/2=37.65

FV=Face value=1000

Interest rate=8.13%/2=4.065

Present Value=?

Hence:

PV=$956.91

Inconclusion the price of the bond  is $956.91.

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