Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount rate for this bond is only 7%. What is the current price of this bond?
A) $387.59
B) $597.24
C) $1,000.00
D) $1,620.45
Answer: D
Explanation: D)
Bond Price = PMT × +
= $120 × + = $1,620.45.
MODE = END
INPUT 30 7 0 -120 -1,000
KEY N I/Y PV PMT FV
CPT 1,620.45
You might also like to view...
Describe the three complaint barriers for dissatisfied consumers and explain how a firm can reduce these barriers
What will be an ideal response?
Which of the following systems is the primary interface to customers and sales channels, typically used to support customers or sales?
A. Back office systems B. Front office systems C. Decision support systems D. Executive information systems
What is the best advice to follow when integrating graphics in a report?
A) ?Always place graphics in the appendix of a report. B) ?Mention the graphic in the text of the report. C) Create graphics in only black and white so that the graphics do not distract the reader. D) Do not include a title above any graphic because the graphic should be self-explanatory.
Suppose a company in North Carolina contracts to buy toys from a company in China. The firms must use:
a. the UCC because it requires U.S. buyers to use the UCC b. the CISG because it is an international sale of goods c. Chinese law because, under the CISG, the law of the seller is used d. the law of a neutral nation to avoid bias e. none of the other choices are required; they may pick any relevant law