What are the cash flows involved in the purchase of a 5-year zero coupon bond that has a par value of $1,000 if the current price is $800? Assume the market rate of interest is 5 percent.

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Answer 1

The  cash flows involved in the purchase of a 5-year zero coupon bond is: Pay $800 today and receive $1000 at the end of 5 years.

What is Cash flows

Cash flows can simply be defined as the inflow and outflow of cash in an organization.

Given:

Par value=$1,000

Current price=$800

Market rate of interest=5%

If the market rate of interest is 5% the cash flow involved in the purchase will be to pay the amount of $800 today (Present value) and receive the amount of $1,000 (Future value) at the end of 5 years  reason being that zero coupon bonds do not pay interest periodically.

Inconclusion the  cash flows involved in the purchase of a 5-year zero coupon bond is: Pay $800 today and receive $1000 at the end of 5 years.

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Related Questions

how do you develop an effective content distribution strategy select one distribution channel, run tests for new marekting channels

Answers

We can develop an effective content distribution strategy through development of distribution channel.

What is a distribution channel?

A distribution channel refers to a  ain of intermediaries from which good are able to reach the final buyer.

However, the process of developing an effective content distribution strategy is through development of distribution channel.

Therefore, the Option A is correct.

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Benny's Baos had an edge in the market, but other companies began to enter the market. Benny is now losing customers even though he has launched an aggressive marketing campaign in an attempt to attract customers. Benny's Baos is likely in the ______ stage of the industry life cycle.

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Since the company is losing customers despite aggressive marketing campaign, then, it is most likely in the decline stage of the industry life cycle

What is an industry life cycle?

The industry life cycle is a cycle that depict the an industry based based on the business characteristics in different phases.

The phases of the industry life cycle includes:

introductiongrowthmaturitydecline stages.

In conclusion, because the company is losing customers despite aggressive marketing campaign, then, it is most likely in the decline stage of the industry life cycle.

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In a bank reconciliation, an outstanding check is ______.

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Answer:

In a bank reconciliation, an outstanding check is ______.  Deducted from the bank balance.

Golden Gate Hair Company keeps track of the gender and age of its customers so it can target emails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of ________ in marketing.

Answers

When the Hair company keeps track of the gender and age of its customers, its intends to use the demographics in marketing.

What is demographics?

A demographics means the study of a population based on age, race, s.ex, education, income, employment etc

The element of demographics are important because its helps to understand the characteristics of the target population.

In conclusion, when Hair company keeps track of the gender and age of its customers, its intends to use the demographics in marketing.

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Stacey is writing up rules for how to answer the phone at the new office. These rules are given
to anyone on the team who will be answering the phone. Which of Fayol's five functions does
this fulfill?

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Because there are writing  rules for how to answer the phone at the new office, these rule does fulfill the function of Command because enforce the staff to answer call in a certain way.

What are Henry Fayol's 5 function?

The function of management established by Henry Fayol's includes Planning, Organizing, Command, Coordination and Control.

Hence, since there are writing  rules for how to answer the phone at the new office, these rule does fulfill the function of Command because enforce the staff to answer call in a certain way.

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After posting the adjusting entry to record revenues for which the seller has performed of its obligations but has not yet collected, which account will be increased?.

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         The account receivables must be increased after which the adjusting entry to record revenues has been posted provided that the seller has performed its obligations but not yet received.

What are account receivables?

Accounts receivable is the amount of money owing to a company for products or services provided or utilized but not yet paid for by consumers.

Accounts receivables are indeed a current asset on the balance sheet.

Therefore, we can conclude that the account receivables must be increased after which the adjusting entry to record revenues has been posted provided that the seller has performed its obligations but not yet received.

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A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as

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A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as long tail.

What is a long tail?

The long tail is known to be a business strategy that gives room for firms to realize good  profits by selling low volumes of hard-to-find items to a lot of customers.

Long tail keywords are known to be a phrases with words that have longer counts.

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T/F: The efficiency of a multi-step process is always greater than the efficiency of its least efficient component. true false

Answers

It should be noted that efficiency of a multi-step process is always greater than the efficiency of its least efficient component.

What is multi-step process?

multi-step process can be regarded as the process involving series of steps as well as components so that high efficiency can be achieved.

In a multi-step process, there is usually a capital intensive in getting the components together but the output is more reliable.

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High debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more equity . The times interest earned ratio measures the extent to which -Select- income can decline before the firm is unable to meet its annual -Select- payments. Its equation is:

Answers

The times interest earned ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest payments.

What is the times interest earned ratio?

The ratio is a financial tools used to measure the company's ability to meet its debt obligations based on its current income.

The formula for deriving the times interest earned ratio is operating income divided by interest expense.

Therefore, the word is "Operating" and "Interest" is correct.

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Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to:

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Inexpensive computer systems and off-the-shelf software make managing small businesses easier by easily tracking daily sales and expenses and managing customer records.

Organizational automation

Intelligent information systems help the management of an organization by processing a large amount of data and transforming it into relevant information.

The information provided by software helps in faster and more reliable decision making, allowing for increased productivity, quality and providing continuous improvement in all processes.

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According to the Bureau of Labor Statistics, how fast are jobs in the computer and information technology industry expected to grow? faster than average average slower than average little or no change.

Answers

Answer:

Faster than Average

Explanation:

Employment in computer and information technology occupations is projected to grow 13 percent from 2020 to 2030, faster than the average for all occupations. These occupations are projected to add about 667,600 new jobs.

Answer:

faster than average

a

Explanation:

In a perfectly competitive market, at the market price, buyers

Answers

Answer:

Buyers must accept the price that is determined by the market.

Explanation:

Perfectly competitive markets are characterized by large numbers of buyers and sellers who cannot influence market prices.

Starbucks is opening a location in China every 15 hours, and just opened its largest location in the world in Shanghai. Which method of international expansion is Starbucks utilizing

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Because Starbuck just opened its largest location in the world in Shanghai, then, the method of international expansion that the firm is utilizing is known as a wholly-owned subsidiaries.

What is called a wholly-owned subsidiaries?

A wholly-owned subsidiaries refers to business entity whose ownership interest owned by the parent company.

In conclusion, in this case, the method of international expansion that the firm is utilizing is known as a wholly-owned subsidiaries

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True or false: An unchanging marketing communication program is critical to the success of every company. True false question. True False

Answers

Answer:

false

Explanation:

you keep changing to what the people want because that t what the will buy new ideas because someone else will.

Which of the five satisfaction facets is most likely to be viewed as undesirable by an employee?.

Answers

The promotion satisfaction is the faucet that the employee may find to be undesirable.

Why the promotion satisfaction is undesirable

This may be undesirable by an employee due to the fact that with more promotions, there would be the need for more work.

Apart from this fact the promotion may also cause the responsibility on the employee to be raised with more work hours.

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Financial statement data at December 31 for Alpine Company are as follows: Cost of goods sold$1,050,000 Inventories: Beginning of year380,000 End of year320,000 Determine the number of days' sales in inventory for the year. a.121.7 days b.132.1 days c.118.8 days d.111.2 days

Answers

The number of days' sales in inventory for the year is: a.121.7 days .

Number of days' sales in inventory

Using this formula

Number of days' sales in inventory=Average inventory/ Cost of goods sold×365

Let plug in the formula

Number of days' sales in inventory = [$380,000 + $320,000) / 2]/$1,050,000 ×365

Number of days' sales in inventory=($700,000/2)/$1,050,000 × 365

Number of days' sales in inventory=$350,000/$1,050,000×364

Number of days' sales in inventory=121.66 days

Number of days' sales in inventory=121.7 days(Approximately)

Inconclusion  the number of days' sales in inventory for the year is: a.121.7 days .

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Why is it a good idea to shop at the same two or three stores from week to week?

Answers

Answer:

It is good to shop at the same shop 2-3 times a week so the business can build a Business 2 Customer relationship, and also to gain points and rewards when you go and come back to the shop to entice you into coming and recommending to a friend.

Explanation:

Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The number of blankets that must be sold to achieve the target profit is ______. Multiple choice question.

Answers

The number of blankets that must be sold to achieve the target profit is 40,000 blanket.

What is a target profit?

A target profit refers to a preset goals of achieving a certain level of profit in particular year

Number of blankets to sold = ($520,000 + $320,000) / $21

Number of blankets to sold = 40,000 blanket

In conclusion, the number of blankets that must be sold to achieve the target profit is 40,000 blanket.

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true or false?

individuaIs in an organization are expected to primariIy work on their own personaI goals.

Answers

Answer:

TRUE ˢˢ

Explanation:

They include specific, day-to-day operational tasks needed to run a business and that help drive scalability and business growth. Key organizational goals can also include employee and management performance, productivity, profitability, innovation, market share and social responsibility goals.

The expenses involved in going into business, such as buying a space and purchasing equipment, are examples of
a.
marketing funds
b. start-up costs
financial plans
d. operating expenses
C.
Please select the best answer from the choices provided
A
ОВ
Оооо,
0 0
D

Answers

for the first section it's b but i don't understand the other bit

What is the term for forecasts used for making day-to-day decisions about meeting demand?.

Answers

Tactical forecasts

Tactical forecasts are used for making day to day decisions about meeting demand

A high degrees of class consciousness in societies can be disruptive within industries, which can often lead to

Answers

It should be noted that high degrees of class consciousness in societies can be disruptive within industries, which can often lead to an increase in the costs of production.

What is class consciousness?

Class consciousness can be regarded as the segregation in the society, it is the placing of individuals to different class.

However, this can often lead to an increase in the costs of production because of segregation.

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majority shareholding corporate governance (underhanded agreement)​

Answers

According to corporate governance parlance, an underhanded agreement is a contract executed by one person as authorized by the Board of Directors.

What is majority shareholding?

Majority shareholding refers to ownership of an entity by a person or entity that controls more than 50% of a company's shares. A majority shareholder can exercise significant influence over the company with their voting shares.

How do majority shareholding and corporate governance relate?

Corporate governance provides the policies and rules for managing a corporation in the best interest of shareholders.

Corporate governance also requires the interests of minority shareholders to be taken into account in decision-making, thereby frowning at some underhanded agreements.

Thus, it is possible for those charged with corporate government (the board of directors) to facilitate underhanded agreements for the majority shareholders. But this practice runs against the ethics of corporate governance.

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Select all that apply Among the benefits businesses provide to their communities are: Multiple select question. higher taxes required for fire and police protection goods and services jobs tax payments

Answers

The benefits that a business brings to the community are:

Goods and services Jobs

Benefits of businesses

Businesses provide goods and services to the community that they are located in. This improves the welfare of that community as they would be able to consume more goods and services.

The business will also need to hire people from the community to work which means that it provides employment as well.

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What form of sustainable entrepreneurship focuses specifically on actions that appear to further some social good, beyond the interests of the firm and that which is required by law, and often denotes societal engagement of organizations?.

Answers

Corporate Social Responsibility focused specifically on actions that appear to further some social good and beyond the interests of the firm

What is Corporate Social Responsibility?

The Corporate social responsibility is a concept that states that all company should self-regulate its actions and be socially accountable to its customers, stakeholders, and the world at large.

In conclusion, the Corporate Social Responsibility focused specifically on actions that appear to further some social good and beyond the interests of the firm

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Why is it important to promote and advertise any products that will go on the market?:​

Answers

Answer:

It's important because it can drive business growth. Advertising works to amplify your small business marketing and helps you reach the right audience with positive, targeted messaging that converts potential customers into paying customers.

in which type of political system would you expect a person to live in grinding poverty for years

Answers

It’s either capitalism or communism for me! In a capitalist country the wealthy would gain more wealth by using the low-income workers for there task. For example work in low wage jobs forever to pay bills and other parts of life. Without a chance of having extra money to start over.

In a communist country it is said that everyone is treated fairly. This is a good practice, but normally this is not the case and people end up being poor because of government corruption.

Hope this helps!
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what is the purpose of the trade union?

Answers

A trade union is an organisation made up of members (a membership-based organisation) and its membership must be made up mainly of workers. One of a trade union's main aims is to protect and advance the interests of its members in the workplace. Most trade unions are independent of any employer.

True or false: Without knowing the future, it is best to have a cost structure with high variable costs.

Answers

Answer:False

Explanation:It is not obvious which cost structure is better, both have advantages and disadvantages

False- without knowing the future, it is best to have a cost structure with high variable costs.

What is cost structure?

The types and proportional distributions of fixed and variable costs that an organization incurs are referred to as cost structure. Smaller definitions of the notion are possible, for example, for each product, service, product line, client, division, or geographical area. If you are utilizing a cost-based pricing approach, cost structure is used as a tool to calculate prices as well as to highlight areas in which expenses may be lowered or at the very least subjected to greater control. The cost structure notion is therefore exclusive to management accounting and does not apply to financial accounting.

The totality of the many fixed and variable cost kinds that go into a business' overall expenses is known as its cost structure. Cost structures are used by businesses to determine pricing and pinpoint areas where costs might be cut.

What is variable cost?

A variable cost is an expense for the company that varies depending on how much is produced or sold. Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.

An expense that fluctuates in relation to production output or sales is referred to as a variable cost. Variable costs rise in response to rising production or sales, and fall in response to falling output or sales. Fixed costs, in contrast to variable costs, are unaffected by changes in production or sales volume.

Any business's overall expenses are made up of both variable and fixed costs. Sales or production output determine variable costs. Per unit produced, the variable cost of production is a fixed sum. Variable costs will rise as output and production volume do as well. On the other hand, the variable costs related to production will therefore go down if fewer products are created.

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#SPJ2

A raise in the price of a product
(1) Causes firms to decrease production.
(2) Causes a decrease in supply.
(3) Increases competition.
(4) Decreases competition.

Answers

I would say 4

Hope this helps!!
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