Business, 05.11.2021 01:00 minixkevon

Media Bias, Inc. issued bonds 10 years ago at $1,000 per bond. These bonds had a 40-year life when issued and the annual interest payment was then 12 percent. This return was in line with the required returns by bondholders at that point in time as described below: Real rate of return 2%
Inflation premium 5
Risk premium 5
Total return 12%
Assume that 10 years later, due to good publicity, the risk premium is now 2 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 30 years remaining until maturity. Compute the new price of the bond.
Round "PV Factor" to 3 decimal places. Round your answer to 2 decimal places. Omit the "$" sign in your response.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:30, fjjjjczar8890

Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.

Answers: 2

continue

Business, 22.06.2019 14:30, lilquanreem8051

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?

Answers: 3

continue

Business, 22.06.2019 21:00, nikkiwoodward1ovgszp

Warner inc. sells a high-speed retrieval system for mining information. it provides the following information for the year. budgeted actual overhead cost $965,700 $905,000 machine hours 58,570 49,200 direct labor hours 107,300 104,200 overhead is applied on the basis of direct labor hours. compute the predetermined overhead rate. predetermined overhead rate $ per direct labor hour link to text determine the amount of overhead applied for the year. the amount of overhead applied $

Answers: 1

continue

Business, 22.06.2019 23:10, katrinanuez

Which investment has the liquidity and can be converted into cash easily?

Answers: 2

continue

You know the right answer?

Media Bias, Inc. issued bonds 10 years ago at $1,000 per bond. These bonds had a 40-year life when i...