Gboeing corporation issued a 25-year bond in 1999. the bond has a stated face value of $10,000 dollars and an annual coupon rate of 4.5%. suppose you bought the bond in january of 1999 and would like to sell the bond in january 2023. the current interest rate on comparable bonds in january 2023is 6.25%. calculate the price at whichyou could sell your bond.

price of bond in 2023 = $9835.29

Explanation:

given data

face value = $10,000

annual coupon rate = 4.5%

current interest rate = 6.25%

to find out

Calculate price at which you could sell your bond

solution

first we get here coupon payment that is express as

coupon payment = annual coupon rate × face value     ......................1

put here value

coupon payment = 4.5% × 10000

coupon payment = 450

so here price of bond in 2023 will be

price of bond in 2023 =        ..................2

put here value

price of bond in 2023 =  

price of bond in 2023 = $9835.29

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.